Monday, January 4th, 2010   7:12 am | Author: Jerry | Life, Money
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The Wall Street Journal reports that banks and financial firms are gearing up to screw you just a little more.
They are planning on raising fees on checking accounts and credit cards ”to replace more than $50 billion in revenue wiped out by new rules that clamp down on certain business practices”.
“Credit-card issuers collected $22.9 billion in penalty fees—such as those assessed for late payments—in 2009, up from $19 billion in 2008.”
“Credit-card companies already have been racing to slip new fees and practices into customer contracts ahead of the law (that becomes effective in February). Issuers are closing accounts, switching cards with fixed interest rates to variable rates and introducing cards that have an annual fee.”
“The Fed estimates that banks generate $25 billion to $38 billion a year in overdraft fees.”
“..banks are expected to eliminate free checking completely, raise fees on safe-deposit boxes and charge customers more for issuing a stop-payment on ..continue reading
An article in this week’s BusinessWeek titled “Wall Street Plays Hardball” makes it clear that the taxpayers are taking a hit, again.
“Wall Street targeted cities big and small with risky financial products that promised to save them money or boost returns. Investment bankers sold exotic derivatives designed to help municipalities cut borrowing costs. Banks and insurance companies constructed complicated tax deals that allowed public utilities, transit authorities, and other nonprofit organizations to extract cash immediately from their long-term assets. Private equity firms, pointing to stellar historical gains, persuaded big public pension funds to plow billions of dollars into high-cost investments at the peak of the market. Many of the transactions shared a striking similarity: provisions that protected the banks from big losses and left the customers on the hook for huge payouts.”
“Now, as many of those deals sour, Wall Street is ramping up its efforts to collect ..continue reading
Thursday, June 4th, 2009   5:15 am | Author: nick | Money
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It seems that banks are bringing back fees. They are going to charge different types of overdraft fees and will not let you opt out of having the overdraft account. There are also discussions of other fees that may be charged.
Also there appear to be discussions by credit card companies and banks that issue credit cards about charging interest rates from the moment that a charge is made on a card. Currently most cards don’t charge interest for the first cycle, 20-30 days after a charge is made as long as payment is made in full when a statement is received.
I checked our bank account on-line this morning and found that one of the checks bounced and the bank charged us an overdraft fee.
Apparently my wife forgot to make the deposit yesterday that would have covered that check.
Somewhat annoyed because I asked her at least twice not to forget to take care of this.