A previous post prompted me to post this is old letter to my Congressman. As you can see it had no effect. This is one of those small issues that never get any attention and eventually will drive people to live in their cars. There is too much collusion between the banks and the vendors and no regulation. It may seem like a small thing, but if it means you can't buy groceries or put gas in the car to get to work because the bank is taking all your money - then it's not so small.
It took a threat from my Senator to get AT&T to reverse it's unauthorized charge. Then it took another 18 months of being a royal pain in the ass to get the bank to reverse over $400 in overdraft fees ($35 fee on a bunch of tiny checks) So here's my story. I'll bet I'm not alone. What's your story?
Senator Chris Dodd is the Chairman of the Banking Committee.
Senator Dodd - Banking
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May 8, 2007
Dear Congressperson,
You know why people loved Jesse James? Because they hated the bankers. The bankers were the bad guys. They were the ones who took your money, took your home and took your farm. Nobody liked the bankers. After the bank failures during the depression, when banks closed their doors and families were financially destroyed, it got even worse. We knew that our money was safer in the mattress or buried in a can in the back yard. But slowly they seduced us, coaxed us to come back in. They told us how men would come in the night and kill us to get the money from the mattress. They plied us with toasters and free checking. Our money would be safer in a checking account. We didn’t need to carry around all that filthy cash. A neat little checkbook would record our transactions. The bankers could be trusted now or so they told us. Then they introduced those little plastic cards. They told us stories about grandmothers who were mugged for their Social Security checks. So we were happy with direct deposit to keep Granny safe. And those automatic bill pay options sounded so reassuring. Just another way to make sure Granny never lost her telephone service. Just looking out for us they told us.
We thought we were dealing with George Bailey (It’s a Wonderful Life.) We were sure that George would use his honeymoon money before he’d let us lose our money. We were deceived. We’ve been dealing with Mr. Potter the whole time. We’re dealing with people who learned their business ethics in the telemarketing world. We’re dealing with "Son of Enron."
So what does that mean for Granny? It means that the bank will processes unauthorized charges routinely. Then they bury Granny in "overdraft charges." When she tries to talk to those friendly bankers, she’s treated like a criminal and charged additional fees until she can cover the overdrafts. She can try to correct the problem with the business that made the unauthorized charges. But she has no way of ever recovering the overdraft fees. She’s trapped. It’s worse than dealing with a loan shark. You have no recourse. Either pay up or you will never get another checking account. You get blacklisted by the banks. Tony Soprano runs the banks.
I speak from personal knowledge. I'm the Granny. I currently have overdraft charges for unauthorized transactions. Unfortunately, it isn’t the first time. And I’m not the only one. I’ve heard of several people, elderly people with direct deposit of their Social Security check, who have had the same problem. I also know of several younger people who have their paychecks deposited. Their problem seems to be that the automatic monthly payments are processed before the automatic monthly paycheck is credited.
I’m an old bean counter. You know the type. I spent years with ink stained fingers from carefully recording transactions in a ledger. I know that the order of things is just as important as the amount. An incorrect date can do more damage than an inverted amount. I was a consciousness bookkeeper. These new banking people have changed the rules. They post the withdrawals before they post the deposits. That’s wrong. They tell me it doesn’t matter, but at some point someone will look and say "you were overdrawn all these days." I’m sure there’ll be an additional charge for that.
There’s a lot of attention being paid to those "Payday Loan" organizations. Lots of people being outraged at the interest charged. I think it’s the bankers who are most concerned. Payday loans are a better deal and a more honest one. Their charges are upfront and not hidden. The same is not true for banks. If you calculate the amount charged for one "overdraft" caused by either an unauthorized debit or the delayed posting of a deposit – simply being short a single dollar can cost you at least thirty dollars and up to several hundred. When that happens, who do you call? Who watches the bankers?
I was also concerned, especially at a time when identity fraud is becoming a problem, about the bank’s attitude towards the unauthorized charges. One Customer Service Rep told me that they couldn't possibly reverse the charges because that's how banks make money. If he's right then the banks are being rewarded for its own incompetence. They profit from not protecting the customers money. It seems that the Enron model is the business model for all business. In the old days, you build a good business on solid business principles and by having loyal satisfied customers. The stock price of those solid businesses would increases. No, that's not how it's done now. They plump up the bottom line any way they can just to plump up the stock prices. Eventually the bottom will fall out. But by then, the bankers, along with Enron, WorldCom and others, will be building their 50 million dollar mansions in Florida. If they worry about legal or financial repercussions – they simply give a hefty donation to the right party.
The fox has been in the hen house too long. Its’ time someone protected the consumers and not the bankers. Please, remember those of us who actually have to live on what we earn.
As for me, I’m putting the money back in the mattress. At least when they come to steal it – they’ll have to do it face to face.
Late entry:
Three days ago, my helper Lydia went to the local Safeway to buy goodies. On her way out she realized that the cashier had overcharged her a whoping twelve dollars! She went back, and got him to credit my debit card. The purchase amount went through immediately. I'm still waiting on the credit. Where is it I wonder.
Remember the Superman Movie where Richard Pryor makes the computer take the "half a cent" and deposoit them in his account.
Superman III Richard Pryor
Is Richard Pryor sitting on my twelve dollars?