Banks - Bad for America

Banks have much more power than they should, for the simple fact that they abuse the power in which they are given. They are driven (as MOST corporations) by greed. They are one of the primary factors in causing the economic problems of America in these past few years (ref: http://marinrealestateblog.com/?p=1389). The banks have been making bad financial decisions for many Americans, by giving bad loans, so how can we trust them to give us any solid financial advice when it comes to our own personal investments? Why is it that they are able to make money off of our savings, and then pay out so little on the profits they receive? (in the form of interest payments to the individuals) Why is it that they have the ability to TAKE money from individuals? I can understand fees for making mistakes (like overdrafts), but to take from us because we don't want to spend, is incorrigible.

In that accusation, I refer to one bank specifically. I opened a Washington Mutual bank account some 20 years ago. This particular account had no conditions, stipulations or requirements. I had no 'minimum monthly balance' to worry about, no need for 'direct deposit', and I had overdraft protection for up to $1,000 (at a fee of $35 per occurrence). Unfortunately for me, my favorite bank was going under, and they were consumed by Chase Bank. I thought everything was fine, (at least it was for the first year), as they grandfathered my account 'as is'. It wasn't until this year, that things started going wrong. I looked at my statement, and noticed that my $26 balance, was minus a $12 fee. I called to find out what was going on, and I was told that the conditions on my account had changed, and that I was under new 'rules' which resulted in those fees. I asked the representative to change my account back to the way it was, and according to her, she did. I was told that in February, all accounts were going to be transferred to that type of stipulation and that my only options were to comply with the new rules they were ENFORCING on me, or close my account.

I called again a few weeks later, to make sure the credit would post, to close my account. I then received my final statement, showing that yes, my credit did in fact post, but then they decided to take the $12 back, because I was closing my account. When I called to complain about this injustice, the representative would not give me any information about my account because I did not know what my previous address was. I confirmed my name, current address, social security, phone number and account number. I got frustrated and told them to send the balance of my money, and that I would never do business with them again, to include a stipulation in any mortgages that I should ever happen to have, to state that Chase or any Bank/Lender associated with this entity, shall not be allowed to assume my loan. If that is not possible, then I will save and buy my next house cash.

We should not HAVE to be subject to rules like: Fees for not having Direct Deposit; Fees for not using our ATM/Checkcard often enough; Fees for not having enough money in the bank (minimum balance requirements); Fees for transfers; Fees for having a particular type of account; The only financial intitution in my opinion, that is worse than banks, are credit card companies, but I think banks are busting their humps to be worse.

When did it become necessary to HAVE to spend money? How is it possible for banks to TAKE money because you don't spend enough? Even with the current bank I am with, I am only charged $5 for inactivity (which I still think is wrong). Why should banks have power to tell people what to do with their money? Isn't it enough that they make money off the savings we put into their banks? Do they have to be so greedy as to find ways to legally steal from us? Banks in my opinion (as are Credit Card Companies as a whole), are nothing more than a monopoly. Even though you have banks by different names, their practices are still universally the same. The only thing different from one bank to another is how much they can legally steal from you. The Republican Party wants to remove regulations? I say regulate them until they realize that they cannot put their hands on our money, unless WE want them to. We need to regulate their fees, and taking power. We need to regulate the ability of banks to control OUR money. I say regulate away.