Thank you for nothing Dodd-Frank (in Debates)


QBRanger October 3 2011 6:41 PM EDT

http://www.reuters.com/article/2011/09/29/us-bankofamerica-debit-idUSTRE78S4GQ20110929

I infrequently use my BoA debit card. Now when I use it, I will have to pay 5 bucks a month for the privilege.

All due to the new Dodd-Frank bill. Cost shifting from the vendors to the consumers.

The law of unintended consequences.

Is this BoA fault or Dodd-Frank/retailer?

I think the latter as shown in this article:

http://campaign2012.washingtonexaminer.com/article/thank-wal-mart-your-new-bank-card-fee?utm_source=TEMPLATE:%20Washington%20Examiner%20Political%20Digest%20-%2010/03/2011&utm_medium=email&utm_campaign=Washington%20Examiner:%20Political%20Digest

Crap like this happens when you try to micromanage the free market.

Lord Bob October 3 2011 6:49 PM EDT

Is this BoA fault
Bank of America. The worst bloody financial institution in the US.

Lord Bob October 3 2011 6:54 PM EDT

I should also note: for all the horrible, horrible things I could say about BoA, this new fee isn't entirely unreasonable, given everything else they do, and what is most likely coming.

Time to switch to a credit union.

QBRanger October 3 2011 6:55 PM EDT

I disagree.

BoA wants to make profits. Nothing is forcing you to use their debit card or even their bank. There are others you can use.

With the new cap on transaction fees, BoA has to recover the money some other way, which is by charging poor schlumps like me to use their card.

In the true free market, it is the vendors who were charged the fee and they could decide to accept such a card as payment.

Regardless of how you personally feel about how bad BoA is, and I feel the same about them as well, this to me is a case of over managing a problem that was never a real problem.

QBRanger October 3 2011 6:57 PM EDT

Time to switch to a credit union.

As I understand, the same will eventually come to credit unions as they will have to make up the loss in transaction fees as well.

This is basically a movement of payment from the vendors to the purchasers.

Lord Bob October 3 2011 7:00 PM EDT

I disagree.
With which part? The part where BoA is responsible for their own policies? Or the part where this isn't the most unreasonable thing they do?

Nothing is forcing you to use their debit card or even their bank. There are others you can use.
See my last post.

BoA has to
BoA "has to" do nothing, except comply with the law. I don't buy into the argument that regulation "forces" already largely profitable businesses to fudge their policies into screwing the customer for even more profits.

and I feel the same about them as well,
Is there a reason you stay with them?

QBRanger October 3 2011 7:13 PM EDT

Disagree with the part it is BoA fault.

No, I do not have to stay with them, but all my online banking, auto bill pay, direct deposits are with them.

It would be a huge mess to switch to another bank that will soon enough copy BoA's policy.

I don't buy into the argument that regulation "forces" already largely profitable businesses to fudge their policies into screwing the customer for even more profits.

Hmmm, Does not BoA want to keep their profit margin up? By charging the customer instead of the vendor they will do so. As someone owning BoA stock, I hope they keep their profits up.

Admindudemus [jabberwocky] October 3 2011 7:19 PM EDT

It would be a huge mess to switch to another bank that will soon enough copy BoA's policy.

i could be wrong but it seems that i remember when the medical debate was going on and people talked about how bad their insurer's were it was often stated that we are in a free market and if you don't like it then switch!

other banks have stated they will not do this to their customers. i would pick one of them. i also have an awesome bank if you happen to be former military!

you seem to be suffering a bit from split personality here though. do you want them to maximize profits or not?

also, if the vendors were paying it before then their prices likely reflected that. now that it is passed on to the consumer, i am sure the free market will correct itself and the prices will come down, no?

Lord Bob October 3 2011 7:26 PM EDT

Does not BoA want to keep their profit margin up?
This has nothing to do with my point. "Want to" is not the same as "forced to." If I lose one of my jobs, I am not "forced to" commit armed robbery to get extra cash.

QBRanger October 3 2011 7:37 PM EDT

IIRC during the health care debate I was stating that one of the major Republican proposals (that never got out of committee) was to allow more free markets in the insurance industry.

Right now you cannot buy health insurance across state lines. Unlike how you can bank or even buy car insurance. Opening the states borders to allow insurance companies to compete in states is one of the free market solutions to the rising costs of health care.

In some states, there are only a handful of health insurance companies left, making choice low and prices high.

In such a situation, if you did not like your health insurance, you would be able to change. However, another proposal the Republicans wanted (that also never got out of committee) was allowing portability of insurance. That is, if you left your job, you can take your insurance with you. Moving from a business providing insurance to personal insurance.

AdminNightStrike October 4 2011 9:30 AM EDT

From the article you linked:
>Mierzwinski said such fees could push customers to smaller banks that have not introduced checking and debit-related fees.

That's good!

I know I for one fight back with my dollar. I use several banks, and I choose them carefully. I demand more value for my hard-earned dollar, as you should as well.

I'm kind of surprised why you would ever go near bank of america in the first place... It's not that hard to move some autopays and direct deposits around. Drop them like a bad habit and get a real bank. Seriously.

QBRanger October 4 2011 9:36 AM EDT

I'm kind of surprised why you would ever go near bank of america in the first place.

I have never really had a problem with BoA. My first mortgage was with them. I have my business account and personal accounts with them.

I had choices before Dodd-Frank, but now my choices are limited as a few other banks plan on following BoA's fee structure.

But what was the problem that necessitated this fee change? This had nothing to do with the wall street crash, the derivatives or the bad mortgages. This was just another example of the government intruding into something with unexpected (well some people knew) consequences.

Why should the government force me to change banks if I am happy where I am?

Reyth October 4 2011 10:13 AM EDT

Ya BoA didn't make a fan out of me very early on. When I see fees, I flees.

Admindudemus [jabberwocky] October 4 2011 10:14 AM EDT

Why should the government force me to change banks if I am happy where I am?

how long has the government been so blatantly targeting you with these despicable plots? ; )

Admindudemus [jabberwocky] October 4 2011 10:27 AM EDT

Debit-card users don't have the lobbying clout of Walmart and the retail industry. Bank of America customers can't get together and hire Durbin's old staffers.

It's the standard tale of government intervention in the economy: The guy with the best lobbyists wins, and the little guy -- this time, the consumer -- loses.

wow, do you read this kind of stuff all the time?

the consumers in this have the final say. it would have been fairly easy to list all of the banks that have spoken out against this and empowered people to choose where their money goes.

instead, the author wants you to feel defeated by "the man" and feel powerless to do anything for yourself. i would ask myself why that is if i were you.

Kefeck [Demonic Serenity] October 4 2011 11:23 AM EDT

Most banks in the U.S already charge fee's for debit card use. Allot of them have offers however that will cancel out that fee, for example " Activate direct deposit " or what I currently use is my bank transfers $25 from my checking and puts it in my savings each month.

The fee is annoying but just remember every time you use that card that is one less trip you'll have to make to go to the bank. >.>

Lord Bob October 4 2011 11:59 AM EDT

how long has the government been so blatantly targeting you with these despicable plots?
*laughs*

QBRanger October 4 2011 12:13 PM EDT

About as long as Obama has been demonizing the rich.

Admindudemus [jabberwocky] October 4 2011 12:31 PM EDT

"poor schlump" and "demonized rich" all in one thread? i used to have a split cowhide wallet but have never heard of the split-personality wallet! ; )

Lochnivar October 4 2011 12:34 PM EDT

About as long as Obama has been demonizing the rich.

/facepalm

If not all of the banks have taken the same steps then this one is on BoA rather than the government...

from wikipedia
"In January 2008, Bank of America began notifying some customers without payment problems that their interest rates were being more than doubled, up to 28%. The bank was criticized for raising rates on customers in good standing, and for declining to explain why it has done so."

Which government bill prompted them to stick it to those customers?

Lord Bob October 4 2011 12:59 PM EDT

/facepalm
Yep. Here it comes. Everybody brace yourselves.

QBRanger October 4 2011 1:13 PM EDT

Yes, we are waiting for "it".

Reyth October 4 2011 1:17 PM EDT

Wow, I was about to post something like "Finally a post we can all agree on". XD

AdminQBVerifex [Serenity In Chaos] October 4 2011 1:46 PM EDT

I'm sure what Ranger says about BoA is all the big old governments fault, and not at all BoA's aggressive loans coming home to roost, or their very aggressive accounting sheet. Looks like they have huge liabilities that they are trying to recoup any way they can.

Nothing to do with that at all I'm sure...

source: http://finapps.forbes.com/finapps/AccountingRisk.do?tkr=BAC
http://finapps.forbes.com/finapps/jsp/finance/compinfo/FinancialIndustrial.jsp?tkr=BAC&period=qtr

Gunny Pew Pew [Red Permanent Assurance] October 4 2011 6:39 PM EDT

As a BoA debit card user who had to talk with a rep in recent months on being charged(never before)for two months of bluh. I hate them. With 3 BoA ATMs within a quarter mile and one more on the way. Probably the only good reason to stay and hate them. Is easy to see BoA is a financial parasite who is at fault for there own quarterly greed without good learnin'. This bill you point the finger at is only their new excuse to draw blood. That nice rep gave a complete refund. Because the bank was wrong to charge me something for nothing. They were at fault then and will be again. This is not parliament, this is Moron Gekko.
Which if sticks...I'm going with Chase or back to Citibank. >.>
The fee will be waived for the bank's premium or platinum privileges accounts tied to its Merrill Lynch brokerage.
y u no flat tax? :P
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