BofA $5 debit card monthly fee…lol

[redblack]

want to defend b of a? want to blame dodd-frank? give it your best shot.

but you’d better read this first:

http://www.latimes.com/business/la-fi-lazarus-20110930,0,2342996.column

Do the math: BofA has 57 million consumer and small-business accounts. If a majority of them uses debit cards, we’re talking a windfall of about $3 billion a year — or $1 billion more than BofA is currently making from transaction fees.

putting a cap on the transaction fee is only reducing b of a’s revenue, not its profits. b of a is retaliating nonetheless.

see, the fact is that corporations in america really pay no taxes. ever. they never have. because every time congress makes them cough up coin, they raise prices and pass it on to the consumer.

the best thing we can do to hit them back is bank locally and divest from wall street.

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[JanS]

what’s not being discussed….before B of A came out with the debit card charges, they sent out a letter to us people who bank there. Beginning in October (but deferred until the end of the year, so they can claim they gave you 2-3 “free” months) they will be starting fees for having a checking account. Becuase I am not a well-heeled patron of the bank, have a small checking account, my fees will be…$12/month. Add that to the debit card fee? $17 a month….simply to keep my money there. Yes, there are ways to avoid the fee…keep a balance always of $1500.00 in your account – yeah, sure. Or have a direct deposit. I am self-employed..now how do I do that? I directly deposit on a weekly basis – lol..but I don’t get a pay check. Yes, folks, the little people taking it in the shorts once again…and then there’s this from this past January..

http://www.washingtonpost.com/wp-dyn/content/article/2011/01/31/AR2011013105314.html

is it any wonder we’re effing cynical?

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[Klause]

Bostonman: What happened to the Enron theives? Well, not much. A couple of guys got 24 months and $125,000 fine. Wow..compared to what damage they did it’s a drop within a drop in the bucket:

ENRON Scandal Summary: Losses and Consequences

Due to the actions of the ENRON executives, the ENRON Company went bankrupt. The loss sustained by investors exceeded $70 billion. Furthermore, these actions cost both trustees and employees upwards of $2 billion; this total is considered to be a result of misappropriated investments, pension funds, stock options, and savings plans – as a result of the government regulation and the limited liability status of the ENRON Corporation, only a small amount of the money lost was ever returned.

== Like I thought, all top executives think alike: “I bear the risk with my company so I should reap the rewards” (your words). So, screw the employees who do a lot of the hard work and anyone else that should get in your way. You’re all the same and you truly believe that your multi-million dollar bonuses are justified.

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[Klause]

In regards to the BOA card fee…It’s not “costing” BOA $2 billion. The word “cost” in this matter is referring to the fact that they are losing $2 billion from the $6 billion they get now. With the new regulation they would still get $4 billion, but of course they want you to believe they are incurring actual losses, when they are actually still making a $4bil profit.

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[redblack]

klause nailed it in post 29. well-said.

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[Klause]

Bank Execs Try to Justify Outrageous Pay–Again:

http://www.bnet.com/blog/business-news/bank-execs-try-to-justify-outrageous-pay-again/4095

http://management.about.com/cs/generalmanagement/a/CEOsOverpaid.htm

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[DBP]

From Post #26:

see, the fact is that corporations in america really pay no taxes. ever. they never have. because every time congress makes them cough up coin, they raise prices and pass it on to the consumer.

the best thing we can do to hit them back is bank locally and divest from wall street.

redblack, mon frère, I heartily endorse your conclusion here, even while calumniating your argument.

In fact, it is not within the purview of the public to know (or care) how a company sets its price structure since, under our capitalist system, a corporation may raise its prices for any reason it wants to. Or no reason at all.

Therefore, the question we should be asking in re corporations is not how they set their prices but rather A) are they complying with the law? and B) do we, as consumers, want to do business with them?

Note that we may choose to do business (or not) with a company for a variety of reasons, including ethical ones.

But to say that corporations don’t really pay taxes because they can just pass all the costs onto consumers is a stretch.

Remember that whenever a corporation raises prices, it puts itself at a competitive disadvantage in relation to its competitors, who may then steal away its customers. Happily, that is just what we’re seeing with the big banks, as evidenced by numerous threads on this forum.

It happens comme ça:

1) Refusing to take a hit to the pocketbook, BoA and Chase raise their fees to cover taxes and regulatory costs.

2) Customers leave in droves for smaller banks and credit unions.

3) BoA and Chase lose even MORE money than if they had taken their lumps like a man.

So you see? Capitalism can still be a beautiful thing. —When it works as intended.

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[Bostonman]

In a way I agree with what DP said. They are a for profit corporation. They can charge whatever they want. If you don’t like it go to the competition. My point is when the government steps in and trys to limit the revenues of a for profit corporation they will always find a way to supplement that revenue either through increasing the cost of a service and passing it through to the customer. They will never take it in the bottom line. Nor do I think they should.

Once those small banks see what is happening to their cost structure from all these people switching bank accounts they will also raise fees. They may not add a debit card fee but they will do something.

Not only the risk Klause but also the knowledge. Like I said, if my job was so easy and my boss could find someone to do it for half the pay he would. But my job isn’t easy and it requires a lot of industry knowledge and smart decision making. Of course, I am not getting million dollar bonuses but what I say is still true. I get a chuckle out of people who don’t have to do my job when they sit around and tell me how much money I should make.

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[miws]

“http://www.bnet.com/blog/business-news/bank-execs-try-to-justify-outrageous-pay-again/4095”

I don’t know whether to scream out in rage, cry, or vomit…

Mike

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[kootchman]

There is a reason they are raising prices. A “retail” account that carries a average monthly balance of $500 bucks is a service. It’s not an account that a bank can “loan against” with such a small balance. Dodd Frank did force banks to carry higher cash/capital reserves.. Checking accounts don’t help. That is why the minimum balance accounts don’t get charged. Not having a $5 fee is not worth tying up $1500 in cash to me..I can get a better return doing something else with it..so I will take the fee as a retail service. I will pay for. A steady service revenue stream can be used to show minimum reserve compliance. I don’t like it..but is the “service” free worth the risk of lost cash, ease of record keeping…? For me, yes. If ya add a cost burden to a business… they will raise prices. Your choice to use it. Populist political gestures do cost money. Now IMAGINE as part of Dodd Frank…the law said you HAVE to carry a debit card, you have no choice….you can’t avoid the fees and can’t use a credit union or cash and if you are caught without a debit card you can get a heft fine… why, you would have something close to Obamacare..! See how that works?

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