Are you closing your local Bank of America account now that they will start charging $60 a year for debit card usage? (credit, checking account)
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As a small holder of BOA stock, I hope your right. The possibility of BOA jettisoning Countrywide into bancruptcy could take the stock down even farther though.
In regards to the OP post we have been with BOA since 89 as Barnett though, then another bank and another and finally BOA swallowed us. Every year or two since then we have had to manipulate our accounts to avoid the charges. They automatically switched us over to a premier account last year on one account and then started charging us imaging fees on another. We love the availabilty of BOA ATMs as we travel alot and use our debit cards almost 100% of the time. We will again manipulate our accounts again to avoid fees if possible. If not 2012 will be a year of change for us also.
My mom was a depresion era baby and always told me never beg anyone to take your money (services, purchases, etc) if your not happy go else where where someone else will appreciate your business.
It is a sad day for American financials.
A. People who save are rewarded with zero interest and are charged to keep savings in the bank.
B. The banks want people to keep in debt to and do all they can to encourage credit card use.
C, We have witnessed the greatest expansion in American history and it was artificially expanded through the use of credit.
BoA will be fine. They're way too powerful, especially after acquiring Merrill.
Who sank them were the homeowners. Banks will sugarcoat everything, becoz it's their fricking job.
For example, you walk into say, "Banana Republic". You see a 50$ item. The sales girl is trying to cajole you. The cashier asks, would you like a banana card and take 10% off. You make the choice of buying, and deep down YOU know whether you can afford it or not. You know the math, your earning limits, your credit history, your everything....... and you make the choice of coming home with the banana republic bag with all the items.
Now, you're defaulting on the Banana Card. And that's the fault of Banana Republic becoz they sold it to you?
Such twisted logic from many of the people here who are taking it out on the "evil" banks simply makes me laugh. Time to introspect. The banks won't be in this trouble if the "cusomers" made conscious decisions, becoz like the sales girl and the cashier, the bank has no fricking idea of who you are. Only you do. To them, all it matters is sales. Welcome to capitalism. And that's okay. Becoz we all know what socialism is, it worked so well in Eastern Europe and Russia
BoA will be fine. They're way too powerful, especially after acquiring Merrill.
Who sank them were the homeowners. Banks will sugarcoat everything, becoz it's their fricking job.
For example, you walk into say, "Banana Republic". You see a 50$ item. The sales girl is trying to cajole you. The cashier asks, would you like a banana card and take 10% off. You make the choice of buying, and deep down YOU know whether you can afford it or not. You know the math, your earning limits, your credit history, your everything....... and you make the choice of coming home with the banana republic bag with all the items.
Now, you're defaulting on the Banana Card. And that's the fault of Banana Republic becoz they sold it to you?
Such twisted logic from many of the people here who are taking it out on the "evil" banks simply makes me laugh. Time to introspect. The banks won't be in this trouble if the "cusomers" made conscious decisions, becoz like the sales girl and the cashier, the bank has no fricking idea of who you are. Only you do. To them, all it matters is sales. Welcome to capitalism. And that's okay. Becoz we all know what socialism is, it worked so well in Eastern Europe and Russia
Not blaming the banks, just commenting on banks bleeding the good consumers that save and do not get in trouble with credit card debt.
Your right credit was the new crack addiction for the last ten years. I have quite a few friends making 6 figures that are living paycheck to paycheck because of their inability to control their spending.
As far as BOA goes, they are realistically experiencing a cash shortage right now. Technically they do not hold the amount of cash it takes to satisfy (cover) the bad loans from Countrywide they hold. Also throw in the fact that many states AG's are going after them in addition to Fannie and Freddie. It makes you wonder why BOA never took complete ownership of Countrywide. They knew it was a losing purchase, but quite possible it might have been the choice to get TARP money in the backroom bargaining with the Feds.
Not blaming the banks, just commenting on banks bleeding the good consumers that save and do not get in trouble with credit card debt.
Your right credit was the new crack addiction for the last ten years. I have quite a few friends making 6 figures that are living paycheck to paycheck because of their inability to control their spending.
As far as BOA goes, they are realistically experiencing a cash shortage right now. technically they do not hold the amount of cash it takes to satisfy (cover) the bad loans from Countrywide they hold. Also throw in the fact that many states AG's are going after them in addition to Fannie and Freddie. It makes you wonder why BOA never took complete ownership of Countrywide.
That describes me
Right now, there's just 800 bucks in my bank account. Of course, after this month's rent and all bills paid, and living in the north east is crazy. I'm also sending 4000 bucks into my stock account every month, on a mandatory basis. But I consider stock buying spending too. I have family obligations and I am very involved in charity as well.
And I buy nice things for me
So I'm always living paycheck to paycheck, though I have a big stock portfolio, but I consider it as future money and never even dream of touching it.
But the best part about me - zero debt, zero loans and over 800 credit score. I use my credit card only to make a few monthly bills to show that I'm a regular credit card user, nothing else I made choices to buy it all with "real" money. Becoz when I buy with real money and I see it running out, I can come to terms with the fact that I'm crossing the line.
That kind of thing is impossible with my 10,000$ limit credit cards. It's like spending out of a hole, like a money pit, they let you spend over and over.
People who open accounts just to deposit their paychecks in and then withdraw all their money until the next paycheck direct depost goes in are actually a COST liability to the bank. Banks don't need those accounts. That's why they are going to start charging fees to cover their cost of servicing those customers and those no-profit accounts every month.
Think of it this way, until the advent of debit cards, you had to pay for a lot more paper checks, correct? $5.00 a month for convenience. We think nothing of spending that on a fast food meal that doesn't do us any good at all. Sorry, I don't see what the big deal is. No, I don't work for BOA.
I guess it's time to move to online banking services like the new Ally bank that is becoming all the rage on financial blogs these days. Since they don't have a brick and mortar business, Ally is able to offer high yield checking accounts (1% depending on amount in account) and do away with all the stupid fees that the big banks charge. As far as ATMs, you can use any...and they will cover the cost. To deposit checks, they can simply be scanned in or mailed.
Probably the smart way to go.
Ally is the refashioned GMAC credit/financial giant that cratered in 2008. Be they're just re-branded and still doing the bad investment(s) they did before. Be wary.
Get ready for a new wave of bank fees. Bank of America will begin charging a $5 monthly fee at the beginning of next year for customers who make debit card purchases.Whether you use your card for one purchase a month or 20, you will pay $5 per month starting in 2012. It doesn't matter if you select "debit" or "credit" at the point of sale.
Most people won't bolt and the fees that they pay will help the price of my Bank of America stock.
Sorry, but I think there will be a fair amount that will leave. And your BOA stock will continue to get battered until they spin off CFC. And I hoping to help drive it down to the mid $5 range.
Last edited by txgolfer130; 10-02-2011 at 09:49 AM..
People who open accounts just to deposit their paychecks in and then withdraw all their money until the next paycheck direct depost goes in are actually a COST liability to the bank. Banks don't need those accounts. That's why they are going to start charging fees to cover their cost of servicing those customers and those no-profit accounts every month.
Think of it this way, until the advent of debit cards, you had to pay for a lot more paper checks, correct? $5.00 a month for convenience. We think nothing of spending that on a fast food meal that doesn't do us any good at all. Sorry, I don't see what the big deal is. No, I don't work for BOA.
People who open accounts just to deposit their paychecks in and then withdraw all their money until the next paycheck direct depost goes in are actually a COST liability to the bank. Banks don't need those accounts. That's why they are going to start charging fees to cover their cost of servicing those customers and those no-profit accounts every month.
Think of it this way, until the advent of debit crads, you had to pay for a lot more checks, correct? $5.00 a month for convenience. We think nothing of spending that on a fast food meal that doesn't do us any good at all. Sorry, I don't see what the big deal is. No, I don't work for BOA.
True, banks are a business. The part where you're wrong is they DO need these type of accounts. The reason these accounts are loss leaders for banks, is b/c banks are busy lending out money on interest bearing and large accounts that these accounts don't leave enough money in them to make money off of, but if they lose them they won't have money to lend at all since a majority of accounts are these type of accounts. Especially today.
Banks are a business, and even they will have to reconcile their accounts at the end of the day. They're either going to have to be a true bank or an investment bank. They can't do both and continue to service the customer...like a business.
Go back to the (overwrought and inaccurate) plea for whine I was replying to.
I'll stick with my statement there and the 10 or so others on the topic I've made.
hth
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I made choices to buy it all with "real" money. Becoz when I buy with real money and I see it running out, I can come to terms with the fact that I'm crossing the line.
