When you hear guys like Ron Paul and Alex Jones go on and on about how the banks are these evil entities that-if left to their own devices- would love nothing more than to kill us all and steal our money, it is easy to get swept up in the hyperbole and simply dismiss the claim out and out without a blink of an eye.
And why wouldn’t you? It sounds insane.
But then a story like this will come around and it makes you realize that it may very well be all true…
Bank of American is seriously talking about charging you for the privilege of using your money.
According to a memo that was made public last Thursday. Bank of America is going to start charging it’s customers a $5.00 a month fee for the usage of a debit card in order to make a purchase starting in early 2012.
The move is said to be in response to costly new federal regulations that took effect on Saturday, October 1st. The new regulations, brought about by the Frank- Dodd financial reform bill congress passed last month (more specifically, a provision in the amendment put there by Democrat Representative Dick Derbin), are expected to cost the Financial industry some $6.6 Billion a year (That comes on top of an additional $5.6 Billion lost due to new rules restricting overdraft fees which went into effect in July 2010). According to the Bill, the banks are now capped at $0.24 per transaction (a serious cut from the $0.44 per transaction they were charging prior to Saturday.
To offset that lost revenue, many banks have eliminated or scaled back debit-rewards programs, added monthly fees for checking accounts and raised minimum balance requirements for customers to avoid certain fees
Bank of American claims that these fees will only apply to certain accounts and will only apply to cards being used for purchases.
Sen. Dick Durbin (D-Ill.), who championed the legislative provision that led to the caps, said in a prepared statement: "After years of raking in excess profits off an unfair and anticompetitive interchange system, Bank of America is trying to find new ways to pad their profits by sticking it to its customers. It's overt, unfair, and I hope their customers have the final say."
Torches soaking in oil and pitchforks being sharpened…
There is a part of me that would love nothing more than to think this is nothing more than juyst the latest in a long string of moves being done by Bank of America in order to bloat those bottom lines as much as possible and that we-as a people- should not go losing our faith in the system and just focus all of our negative attention on the greedy corporate monolith…
But they are not alone.
Wells Fargo and JP Morgan Chase & Co are also looking into similar programs and Regions Financial went forward with a plan to charge $4.00/month the program began October 1st).
And I am sure there will be no lack of companies coming in on BoA’s heels (allowing the hated corporate juggernaut to take the arrows of the trailblazers while they made a similar move under the cover of dark) …
Mark my words, by the end of next year all banks will be charging you for the privilege of letting you use your money.