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This is what you get when banks have the power!

19 February, 2009

Failing banks get bailed out by our irresponsible Congress.  The banks then buy up other banks, merge, spend the money on private benefits such as planes, meetings at resorts, expensive office remodels, and CEO “benefits” for failing rather than passing on the money to their  “customers”  so that the economy might recover.

Now we learn that those banks are also making money from contracts with State Unemployment Offices to handle the distribution of benefits to workers who have been laid off. The  states are handing out bank “debit” cards.  Banks are, in the meantime,  earning interest on the money they received from the state to pay unemployment benefits.  They earn this money until full payment is made to the “customer.” But that is not enough for them. They are charging their “customers” fees for talking to someone at the bank, taking out money from an ATM, or making more than one withdrawal per day.  Needless to say, is that the unemployed did not get to choose who would keep their money; that was settled by contract with your state and whatever bank they they sold themselves to chose.  At least with a check you could deposit it in your own account and earn the interest yourself.

The situation is outrageous.  These are the Banks who received money from the TARP  (Bank-Bailout Package) including Bank of America, US Bancoup, and J Morgan Chase, among others. And these are the banks that let people go because they could not afford to keep them all on staff. We should have let them all fail.

Wake Up America:  you are being screwed by these banks.  I kid you not.  Here‘s the story from The Associated Press.  Read it and weep.

2 Comments leave one →
  1. JENN permalink
    19 February, 2009 21:15

    I have recently closed my accounts with BOA, hoping they will soon be known as DOA. They have robbed accountholders for years with their fees.

    I used to work for The Bombay Company and they had implemented a payroll policy for paperless paydays. If an employee did not already participate in direct deposit or go ahead and sign up for it, they would issue you a pay card instead of issuing paychecks going forward. I had an employee in my store who had to withdraw the whole amount at his bank to actually keep all of “his money”. If he made ATM withdrawals in increments, it cost him each time. And then he ended up not being able to get the last few cents of the balance that would be left on the card.

    I personally experienced the same, when mysteriously one time my hours paid to me by direct deposit were short from what I had worked that pay period. Instead of making another direct deposit into my account, the payroll dept told me they would have to send me a pay card for the balance of what they had shorted.

    Needless to say four years later, I still have that stupid paycard somewhere; and most likely with a balance of $2.00 left on it. That is only IF they didn’t deduct a fee each month afterward when the card was not being used.

    • 19 February, 2009 21:15

      Several years ago, I got a credit card with a very low interest rate; it was eventually taken over by BofA. As long as I make sure I pay them off every month, they can’t change the rate, but if I am two minutes late it will skyrocket. I am slowly closing down all my accounts except the one with my credit union; they at least are not trying to suck the life out of everyone. The banks have become vampires — America First — then the rest of the world.

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