Legal Bank Robbery!!

[mermaid]

Hold onto your wallets!

Wait till you hear about the latest scheme banks have come up with - the sole purpose of which is separating you from your money!

Recently, I found myself in a money-crunch. I was running on fumes in both my gas tank and bank account (not entirely uncommon for people these days in the rotten Bush economy) and had to do something I do not commonly have to do. I had to cash my paycheck at my employer’s bank. I was not able to wait till the next day when my bank would credit me…I needed the money NOW!

Apparently, in Texas, it is now legal (and common practice) to charge employees five dollars to cash their paychecks at their own employer’s bank, if they do not have an account there. The justification I was given for this is that banks are going digital, and trying to get away from paper transactions altogether. The claim was that this would force people into Direct Deposit programs.

However, this becomes a problem for the poor (mostly minorities) who do not even have banking accounts…and for employees whose employer does not offer direct Deposit…as well as for people who, because of difficult economic times, find themselves in the situation I found myself in this morning. If banks truly wanted to encourage Direct Deposit, they would charge the employer the fee when their employees showed up to cash checks! This would encourage employers to offer Direct Deposit.

This fee is legally chargeable per Texas banking laws. I also found that, not only was it legal, but also common practice in the Texas banking industry! Furthermore, I found that this is apparently set to go nationwide!

Hold onto your wallets! The banks have found yet another way to separate us hard-working Americans from our own money! Now, if I went into a bank, and took five dollars that did not rightfully belong to me, I’d be in jail for bank robbery! Apparently, the bank can take five dollars that is not rightfully theirs from ME…and I have no recourse, and it is even legal for them to do it!

They call it a “courtesy fee.” I say it’s time to stop putting lipstick on the pig, and call it what it really is…bank robbery!

[Gryffindor_Bookworm]

1. This. Is. Horrifying.

Goddamn greedy capitalists. :grr:

[amber dog democrat]

2. Credit Unions offer a better alternative

and mine charges me no fees if I can keep a minimum balance - that may be harder to do than it sounds - however i am NOT charged for cashing checks. mine credits me right away - especially on partial deposits.

Screw banks. I have not used one in 25 years.

[aden_nak]

3. I fail to see what is courteous about this fee. ;)

[HEyHEY]

4. Did you see my post yesterday?

I didn't have enough money to cover my student loan payment, so I was just going to let it bounce, which would still have given me about $20 to live off of until the 15th. I knew I'd have to double up my payment to break even the next month but I'd make it work. Anyway, the bank lets me go $137 in the hole and allows the payment through. Then they charge me $5 for it. I don't recall giving permission to them to put my funds in the minus column.

[mermaid]

5. Taking ACTION!!

I'm gonna fight this!
No, HEyHEY...didn't see your post yesterday, you mind providing a link?

Anyway, I called the Clark Howard Show about this today, and got on the air about it...I also called my State Representative, as well as my Federal Congressman.

Also, Clark Howard informed me that this is also going on in California, and indeed IS fixing to go nationwide, and there is an attorney in Los Angeles who is suing Bank Of America over this very issue, becuase California has apparently passed state legislation banning the practice, and Bank of America is arguing that states don't have the right to do this, that it is a federal matter, especially since they are a national bank.

Incidentally, Bank of America is who pulled this crap on me today!

Anyway, Clark Howard put me in touch with the attorney who is fighting this, and I am following up. Apparently, this attorney is named Nicholas Roxborough, and his office phone number I'll be glad to give anyone who wants it by PM...or you can just Google it.

I AM GOING TO FIGHT THIS AS HARD AND AS FAR AS I CAN!!

I want to sound the alarm, and I want people to know the banks are doing this sort of thing, and I want to stand up to them to make the stop doing it!

Five bucks, as I say, is not a lot in the greater scheme of things, but it is the PRINCIPLE of the thing. And, you're right, there is no "courtesy" in this...as we say here in Texas, "if you put lipstick on the pig...it is STILL a pig!!"

Can you tell I am good and fired up over this one?

I plan on writing letters to the editor of the NY Times, the LA Times, and The Washington Post, among others...if anyone can turn me on to other good newspapers to send to...as well as other progressive/liberal websites to post this on...I'm looking to motivate a charge on this, I want to cause a consumer uproar over this!!

I'm a tenacious bulldog on this one, I've clamped my teeth into this one, and I ain't letting go!

Incidentally, when I questioned the fee, this morning, at the bank (rather strenuously, I might add) I was informed by Bank of America that if I made a scene about it, that they would refuse to cash the check at all, and that I could just go somewhere else!

[baldguy]

6. Low interest rates, banks don't make enough money,

[mermaid]

7. Low Employment Rates, Low Wages, WORKERS Don't Make Enough Money!!

n/t

[baldguy]

8. Yeah, yeah & yeah

But that's not the reason banks are inventing new fees. I wonder who appointed the Texas State Banking Commission? Hmmmm?