I wouldn't be doing my duty if I didn't keep you posted on what the bankers are up to and, even more importantly, what the media are saying the bankers are up to.
I felt a great deal of satisfaction this morning when I read 4 ways we keep wasting money on MSN. My friends, it is as I suspected, and I am just tickled about it! Remember how our kind government swooped in to save us all from the horror of overdraft fees? Remember how they were going to force banks to expose their cruel and inhumane tactics and put a stop to all these wretched charges that were causing the poor to get poorer and the rich to get richer? Man, it was going to be earth-shattering.
Since I work in the banking industry, let me tell you how it went down:
Government: Hey banks, we need you to disclose your overdraft policies to your clients. Give them the option of letting their card decline when they don't have enough money, instead of automatically allowing the purchase and charging exorbitant fees.
Banks: (big sigh) Okay, we'll do that. But that means we have to mail out tons of letters, make lots of phone calls and train all of our staff on these new policies, which will cost us a lot of dinero (cash, moola).
Government: Not our problem.
Banks: Yes, but we are already a struggling industry, and now the FDIC is charging us more for insurance, and it is getting harder to give loans because of poor credit, and we're sitting on vacant homes, and-
Government: Again, not our problem.
So off we went, calling our clients, mailing letters to our clients, printing brochures, updating our websites, training our staff, dealing with much confusion, all to save people from overdraft fees. It was a good cause.
And then today, look what I see!
As many as 75% of bank customers have opted to keep overdraft "protection" and the fees incurred, according to The Wall Street Journal.
Illinois-based Moebs Services, a banking analyst, estimates banks will collect upward of $38 billion in overdraft fees next year, up from this year's estimated $35.4 billion.
That's right, right from MSN, the people who love the banking industry oh-so-much, and spent much of their time earlier in the year explaining why banks are evil and these new government changes would save your life. You know what the problem is? People don't want the life preserver. They would rather flail around in the water and complain that no one will save them from drowning.
So now we spent ridiculous amounts of money to create the legislation, ridiculous amounts to update consumers on how the banks are handling the changes, and hardly anything even changes! Life preservers are expensive, my friends.
You know what I say? Get rid of all the preservers and teach them how to swim!
- ► 2011 (20)
- ▼ December (4)