BofA chief: We have a 'right to make a profit' Me: Yes, you do. . but....

  • Bigolbear

    Posts: 528

    Oct 06, 2011 7:36 PM GMT

    brian-moynihan.gi.top.jpg
    http://money.cnn.com/2011/10/05/news/economy/bank_of_america_moynihan/index.htm?hpt=hp_t2

    I have to agree with them, they do have a right to make a profit. In fact they have an obligation to their shareholders to make a profit. What they don't have a right to is to add fees to make said profit without any repercussions from their customer base or without a consumer backlash for doing so.

    If people are sick of being nickel and dimed to death by a company then they should use one of their other options available to them. If someone doesn't like the BofA $5 a month (for now) fee then they can move to a bank that doesn't charge the fee or they can become a member of a credit union. You may not get a fancy phone app that makes it convenient, but if that's worth an additional $5 (for now) fee a month then stay with BofA. My credit union does have one so I have never seen a point to move to a nationwide bank.

    You may not want to invest the time and effort to switch over your automatic deposits and bill pays, but you have to figure if that is worth $5 a month (for now) to you. My checking account doesn't cost me a single penny, in fact I get dividends on it. My ATM fees are free if I stick to a supported ATM which there are several here in Houston (and there is an app for that too). I can make deposits at other credit unions free of charge (with a one day delay of funds, no big deal). My credit union also offers amazing online banking and budgeting tools as well as free investing seminars and other financial planning services.

    I completely support people being up in arms about these charges and not wanting to take the brunt of them. I support people leaving Netflix/Quikster or whatever they are going to call themselves because their rate jumped from $9, to $11, now to $16 a month in a matter of a year. I support people who want to leave Comcast (now Xfinity) because their service levels suck.

    Yes, a company has a right and even a duty to be profitable but it doesn't come at a cost of consumers losing their ability to take their money elsewhere and to encourage others to do so as well. If you are a BofA customer and this $5 (for now) fee is bugging you then move. If you are another bank customer and you are afraid of new fees heading your way then write the company now and tell them you intend to leave if they implement these fees. If they do implement these fees then stick to your guns and move or just pay them and get ready for more.


    Now I'll get off my soapbox and leave you with this:

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  • Posted by a hidden member.
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    Oct 06, 2011 7:46 PM GMT
    He has a right to make a profit, just like I have the right to bank with whoever I want too. If I dont like the fee (I dont) I can chose to go somewhere else. Enough people do this and their profit base disappears.

    Considering 67% of the individuals said they would switch banks once this fee starts, I think BofA might not be around in the near future.
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    Oct 06, 2011 7:55 PM GMT
    Perhaps in one of my better anticipatory moves, I had my partner & me cancel our mutltiple BOA accounts 2 months ago. BOA is on the ropes, and I hope Obama isn't foolish enough to bail them out once again. They may be too big to fail, but they're also too big to fuck us over again.
  • Bigolbear

    Posts: 528

    Oct 07, 2011 2:53 PM GMT
    Art_Deco saidPerhaps in one of my better anticipatory moves, I had my partner & me cancel our mutltiple BOA accounts 2 months ago. BOA is on the ropes, and I hope Obama isn't foolish enough to bail them out once again. They may be too big to fail, but they're also too big to fuck us over again.


    I've always been with a local credit union. I'm trying to convince my partner to switch over now.
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    Oct 07, 2011 3:02 PM GMT
    Could it be unintended consequences of government intervention?

    http://www.thenewamerican.com/economy/commentary-mainmenu-43/9223-5-debit-card-fee-dont-blame-banks-but-durbin-dodd-frank-the-fed
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    Oct 07, 2011 3:09 PM GMT
    So what you are saying is, when given the chance, they are going to take every opportunity to not only make profits but screw people over in the process? Nice.

    That's exactly who I want to support!
  • Bigolbear

    Posts: 528

    Oct 07, 2011 3:20 PM GMT
    socalfitness saidCould it be unintended consequences of government intervention?

    http://www.thenewamerican.com/economy/commentary-mainmenu-43/9223-5-debit-card-fee-dont-blame-banks-but-durbin-dodd-frank-the-fed


    My credit union is not charging an ATM card fee even with Durbin. So it's not Drubin... it's greed.
  • Bigolbear

    Posts: 528

    Oct 07, 2011 3:24 PM GMT
    ConfederateGhost saidSo what you are saying is, when given the chance, they are going to take every opportunity to not only make profits but screw people over in the process? Nice.

    That's exactly who I want to support!


    Screwing people over isn't a goal of theirs it's just a byproduct of making profit. It's the nature of the beast.

    Maybe if BofA cut their spending???? I mean the conservative mantra is to cut spending not increase revenue in times of hardship but I guess it's not the same for business.
  • musclmed

    Posts: 3284

    Oct 07, 2011 3:38 PM GMT
    Bigolbear said
    ConfederateGhost saidSo what you are saying is, when given the chance, they are going to take every opportunity to not only make profits but screw people over in the process? Nice.

    That's exactly who I want to support!


    Screwing people over isn't a goal of theirs it's just a byproduct of making profit. It's the nature of the beast.

    Maybe if BofA cut their spending???? I mean the conservative mantra is to cut spending not increase revenue in times of hardship but I guess it's not the same for business.


    A side of effect of Durbin amendment has been this 5 dollar charge, although I generally agree with less government involvement, In this case it highlights some of the fees people are paying. Hopefully now they realize it.

    Having a debit card is a convenience, but it is incredibly crazy to have it linked to an account with alot of money.

    Get a Paypal debit card, and transfer money in increments. Or get a prepaid card ( amex has one now ) and charge it up.

    A better law would have been a requirement of any transaction using plastic clearly delineate the fees the merchant paid.
    Essentially whatever the merchant is paying ( YOU ARE PAYING)
    Laws cannot protect you from this practice.
    You can ban the fees and they will stop issuing debit cards.

    Only the knowledge of the practice can cause cheaper prices.
  • Bigolbear

    Posts: 528

    Oct 07, 2011 3:53 PM GMT
    musclmed said
    Bigolbear said
    ConfederateGhost saidSo what you are saying is, when given the chance, they are going to take every opportunity to not only make profits but screw people over in the process? Nice.

    That's exactly who I want to support!


    Screwing people over isn't a goal of theirs it's just a byproduct of making profit. It's the nature of the beast.

    Maybe if BofA cut their spending???? I mean the conservative mantra is to cut spending not increase revenue in times of hardship but I guess it's not the same for business.


    A side of effect of Durbin amendment has been this 5 dollar charge, although I generally agree with less government involvement, In this case it highlights some of the fees people are paying. Hopefully now they realize it.

    Having a debit card is a convenience, but it is incredibly crazy to have it linked to an account with alot of money.

    Get a Paypal debit card, and transfer money in increments. Or get a prepaid card ( amex has one now ) and charge it up.

    A better law would have been a requirement of any transaction using plastic clearly delineate the fees the merchant paid.
    Essentially whatever the merchant is paying ( YOU ARE PAYING)
    Laws cannot protect you from this practice.
    You can ban the fees and they will stop issuing debit cards.
    Only the knowledge of the practice can cause cheaper prices.


    I don't think they will stop issuing them. Again, my credit union doesn't currently charge those fees and they say that they do not intend to start charging a fee. If they have a way of making money without charging those fees then BofA can figure out a way as well. I figure they would probably find a way to hike up some other charge to cover for it. From what I understand if you keep a certain amount in your account you don't get charged any of those fees anyway.
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    Oct 07, 2011 4:14 PM GMT
    Bigolbear said
    socalfitness saidCould it be unintended consequences of government intervention?

    http://www.thenewamerican.com/economy/commentary-mainmenu-43/9223-5-debit-card-fee-dont-blame-banks-but-durbin-dodd-frank-the-fed


    My credit union is not charging an ATM card fee even with Durbin. So it's not Drubin... it's greed.

    You can call it greed. I can call it maintaining their profit margin. Stay with your credit union.
  • creature

    Posts: 5197

    Oct 08, 2011 1:06 PM GMT
    socalfitness said
    Bigolbear said
    socalfitness saidCould it be unintended consequences of government intervention?

    http://www.thenewamerican.com/economy/commentary-mainmenu-43/9223-5-debit-card-fee-dont-blame-banks-but-durbin-dodd-frank-the-fed


    My credit union is not charging an ATM card fee even with Durbin. So it's not Drubin... it's greed.

    You can call it greed. I can call it maintaining their profit margin. Stay with your credit union.


    It is about maintaining the profit margin, but if a significant amount of customers are dissatisfied with this approach and take action, it will be the loss of Bank of America and others who follow suit. It's not smart long-term planning to stick it to your customers because they felt they needed protection from what they consider to be abusive practices.

    Some companies are actually willing to take a hit in profits to maintain customer satisfaction and loyalty.
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    Oct 08, 2011 1:13 PM GMT
    socalfitness saidCould it be unintended consequences of government intervention?

    http://www.thenewamerican.com/economy/commentary-mainmenu-43/9223-5-debit-card-fee-dont-blame-banks-but-durbin-dodd-frank-the-fed
    Yes.. if TARP didnt exist, neither would BofA.
  • Posted by a hidden member.
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    Oct 08, 2011 1:30 PM GMT
    I love my credit union. They have helped me out in years past with auto loans, a fair rate of interest on my gold card, no charge for checking and they even pay me interest on checking balance. They offer all the services that a big bank does except they don't have ATM's that are as convenient. Join a credit union and you will eliminate what I call budget leakage from your budget.

    They big banks really do not want to help out the little guy and I don't think they would give me the time of day if I went to one of them wanting an auto loan.
  • Posted by a hidden member.
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    Oct 08, 2011 1:34 PM GMT
    When I was still in banking, ATMs were brought in and the public was guaranteed they would always be free (laughs uproariously).

    When I left banking for a new career, there were no fees on any accounts. That came later. $5 a month often on chequing accounts. All the banks and credit unions etc got into it at the same time. Soon, withdrawals from a live teller cost 20 cents and then deposits did, too. Once enough people were weaned off of tellers and staff reduced efficiently, the ATM charges began.

    Monthly fees on accounts got higher and higher. Currently one famous bank up here has a minimum fee of 14.95 a month unless you keep $3,500 in it every second of the day.

    If your balance in your chequing account for example drops even once during the course of a day then gets topped up later in the day - Poof! They have your 14.95.

    If you withdraw from your RRSP, the fee for the 5 second key strokes by a rep is......$50.
    Along has come Coast Capital Credit Union. No fees. Their growth has been astronomical.

    -Doug
  • GQjock

    Posts: 11649

    Oct 08, 2011 2:04 PM GMT
    Like the Teapartiers said .... and Mr Paul himself Vote with your feet

    Dick Durbin recently stated .... if Bank of America is gauging you ... get the hell out of Bank of America

    MAKE them the example that it's time to CUT THE CRAP

    There's profit and then there's FLEECING
    and this is definitely the latter