I Just Gave You $45 Billion. Why Am I Still Paying ATM Fees?

The President is still more popular than George Clooney but after the A.I.G. mess and if the current bank bailout plan -- written by Wall Street insiders for Wall Street insiders -- doesn't turn the economy around, then he will need to again ask us, the taxpayers, to cough up another massive hairball of loot for Plan B.

May I suggest that he offer us something in return?

If so far we have given

$45 billion to Citibank

$45 billion to Bank of America

$25 billion to Chase

$25 billion to Wells Fargo

then why are we, their new investors, still gouged for fictitious ATM fees? The true cost of an ATM transaction is about a quarter. Let the banks make their money on interest from mortgages and business loans, the very loans that our bailout is supposed to foster.

Furthermore, why are these banks that we are now supporting still allowed to prey upon the most endangered consumers by cranking up their interest rates to as high as 29.9%? You could get a better rate from Tony Soprano.

What can we do about all this? Dick Durbin and Rhode Island's Senator Sheldon Whitehouse are introducing legislation to address the issue now. We could let them know that we've got their back.

We could collectively demand a little dividend on the billions we've already shelled out.

And if the President got behind the idea early it might make us regular folk a little more enthused about further bailouts.

Comments

[ESLundo]

Banks have gone from giving you a toaster to making you toast in ATM fees, late charges and trying to make you feel good about getting 2% interest. I've been watching the rise of social good lending networks like Kiva, Grameem and United Prosperity. These microlenders have enviable repayment rates even though they lend to some of the poorest people on earth.

I'd argue that it is time for a Bank 2.0 set of companies that treat depositors with decency, make a couple points in the spread between loans and deposits and use ethics instead of ill-gained profits and government handouts as the measure of success.

[jordan3189]

If you have atm fees, other than at nonbanking locations, you need to take 5 seconds and shop around, many banks have no atm fees. Do some research.

[mbaty]

I think you are on the right track in asking, "why can't I set the terms for using my own money?" Most of us have no negotiating power when we go in to open an account. Banks want you to deposit the money but then not use the money until after midnight. They want you to pay a fee if you run your card and it's "accepted," even though the bank knew there wasn't enough in the account. Then, even if they don't pay the transaction they want to charge you a fee for some kind of electronic transfer of data that costs them nothing. I think we all need to step back from banks and credit cards and say that We will determine the terms for using OUR money, in a way that is convenient for us and in a way that respects our patronage without predatory policies or heavily inflated "fees" for things that cost relatively nothing.

[KillTheMessenger]

You have quite a bit of leverage. Whenever I get hit with these fees I ask them to waive them. In one case they said they can't do that. Then I said that I can't leave my money on a bank that treats me like that. I asked them to give me the roughly $10k+ on all my accounts in cash. The manager went away, made a phone call and the fees were gone in no time. Moreover, they made an entry in my files that the condition which led to the fees can never occur again.

No big deal. All you have to do is to say that you are willing to take your business somewhere else.

[ched]

ATM fees?

I think a better question is, why are you banking at any of these institutions?

[cheesymacaroni]

Run, don't walk to your nearest credit union.

[KillTheMessenger]

So the credit unions get their ATM machines for free and they don't need to charge something one way or another for their use?

Interesting...

[KillTheMessenger]

OK, let's get rid of ATMs, then. The cost for getting cash will go back to being $1+ because an actual employee has to stand at the counter.

Waaaaaay better for everyone. And we would have more bank employees to blame the mess on, too!

:-)

[BassMonk]

Because you are doing business with a commercial bank. Credit unions generally have no ATM fees.

[IOracle]

I love what you're saying Mr.Ellis but it may surprise you to hear that those high interests rates on credit cards have been allowed for a long time.
There was a time when charging outrageous interest was illegal. It was called "usury." Loan sharks were guilty of usury. But then corporate America got into charging those rates and it apparently became "good business" just as it became "good business" to offer subprime mortgages.
Everything became okay if the big financial institutions could make money off it. And the way I see it is that they have a win/win situation. If they make money, they do. If they lose money they go to the taxpayers.

What a deal!

[KillTheMessenger]

Credit cards are a great deal. You can simply refuse to use them and then they are for free. That's what I do, anyway.

:-)

[mergina]

Silly, because if they did not charge those ATM fees, how would they earn those bonuses? ATM fees may be the only thing holding banks together. Their BANKROBBER executives have already taken everything else.

[TJCole]

True dat...!

[BobLablah]

Great idea! Take away the profit centers from banks. What better way to help them pay back the loans than to stop them from earning any profit.

[oustfan]

They were bailed out because they weren't making money - not so they can stop charging $2.25 because we're too lazy to cross the street to go to our own bank's ATM.

I think it's pretty cool that I can withdraw money from an ATM that's not even associated with my bank when faced with an emergency.

[rsaillant1]

oustfan:

Well, aren't you fortunate, you can let your bank make a quick 2 bucks 'cause you can
just walk across the street to your ATM,

Lot's of us folks don't enjoy the close proximity that you do.

Bank of America, my bank, is more than a mile away. I keep 15-18 thousand in my checking account and they are now charging me a fee when I use an ATM outside my food store which
is a mile away in the opposit direction. This charge is new, it started after they received money from the taxpayers.­...strange­, coincidence, greed?

[KillTheMessenger]

You do realize that you can just use your debit card most of the time, right? And the store will be glad to give you cash back for free... they don't fancy keeping cash around.

[WeMustChange]

I agree 100%

[AntiSocialite]

Hear, Hear. You are absolutely right, but I'm not holding my breath. I've always smarted at being asked to pay money to have access to my own money, of course their excuse is that it is a convenience charge and that anyone could go to the bank office. How convenient for them that their banker's hours end before many of us even get out of work. More galling still is the fact that if you use another banks ATM you will be charged twice, not only by the bank that owns the ATM but by your own bank as well. This has been and still is a ludicrous practice that needs to end. Maybe I should charge them a twenty dollar fee when they take my direct-deposited paychecks.

Peace