Comments on: Adventures with “free” checking, transatlantic edition http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: paul314 http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47552 Tue, 02 Jul 2013 20:02:00 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47552 This stuff is a result of the rules barring the old overdraft-fine rules. Now there are new fines that comply (just barely) with the new rules.

TD BankNorth has taken a slightly different approach: first, they skirted the overdraft rules by leaving open a big fat loophole for electronic transfers — if you have given anyone direct access to your account, they can take out whatever amount they want, even if you don’t have it, unless you go into a branch and file a written request to block ACH overdraft. Then they just instituted a $100 minimum balance with large fees for dipping below it, which is brilliant because there’s no way of saying “I would rather bounce this request than go below my minimum balance.” This has made our joint checking account, previously used for groceries and such, essentially useless without a huge non-interest-bearing cushion.

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By: evodevo http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47551 Tue, 02 Jul 2013 19:48:20 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47551 That’s why I switched to Credit Unions years ago….

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By: ABT http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47550 Tue, 02 Jul 2013 19:08:57 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47550 In respect of the PPI stuff in the UK. While the banks definitely missold the product to plenty of people I would estimate that by a significant majority the people being refunded their money now knew perfectly well what they were buying, were eligible for the product, and have just seen a quick way to get their money back after they never got to claim on the product.

Due to the proliferation of companies encouraging claims there are a huge number of people claiming compensation on this who never even had a financial product with the bank they are accusing, let alone even took out PPI with them. It has just got to the stage where it is easier and cheaper for the banks to pay it all out, get it over with as quickly as possible and just move on with trying to repair their reputation.

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By: junkcharts http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47547 Tue, 02 Jul 2013 16:55:57 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47547 You have my sympathies. I went through the same experience with Citi a few years ago, only the amounts were different. They also would not let you set up overdraft to a savings account where you have plenty of cash sitting around. You’d also run into trouble if you try to cancel that Checking Plus account.

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By: helocdoc http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47546 Tue, 02 Jul 2013 15:03:30 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47546 Retail banking is broken? Yes, retail banking is broken, but we’re not looking in the right place to fix it. Look, you don’t have to pay those fees and you don’t have to worry about or convict the banking system for not being transparent. Who do you deal with that is 100% transparent? Is our government transparent? They are the worst of the worst in that game. Is your employer 100% transparent? When you are denied a raise is your employer opening the books and showing you why you don’t get the raise? Of course not, so why look at the banking industry to be any different.

Strictly speaking of banking; we don’t have to participate in their game. Its a choice. You can cash your paycheck as opposed to depositing it in their coffers. You CAN maintain 100% control over every dime you earn and you do that by NOT handing your paycheck to them. Don’t give any “yea but’s” to that recommendation. You can do that if you choose and if you do you will be 100% immune from hidden bank fees. You control that choice, just like finding a new job or a new country to live in.

You also have the choice to find new ways of using the banking system as it exists right now. You CAN beat them at their own game. For example, use a checking account for its intended purpose; strictly as a conduit to pay your bills. A checking account should not be used as a holding pen for your income, there is no ROI. Think about it; who is the biggest benefactor to all of our deposits? Do you think that might be having an adverse effect on the financial condition of America’s consumer base?

How about credit cards? If you use a credit card as a tool and not a consumption device your income could be used continually throughout the month to either earn interest or abate interest. And when it comes to the interest we pay on loans: who said we have to abide by the conventional practice of amortized debt? Did you know every amortized loan (mortgage, auto, student) is an annuity? The formula used to calculate the amortization schedule is an annuity formula. How did we get suckered into funding someone else’s annuity under the disguise of a low rate and low payment. Talk about no transparency. I’ll bet 99% of you reading this didn’t realize this “annuity” scam.

Retail banking itself isn’t broken it is the way be which we, as consumers function within their business model. It is our involvement that is broken. Don’t blame the banking industry for having an extremely profitable business model. Blame yourself for participating and find alternative methods of operating within their model.

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By: TomWest http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47545 Tue, 02 Jul 2013 14:39:33 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47545 > I have a very hard time feeling sympathy towards
> a bank customer who can’t be bothered to open his
> statement and then gets upset about the fees he
> is charged.

I’m not certain why there should be an obligation on the part of the customer to constantly check that you are not being borderline-defrauded by businesses you are dealing with.

Next: No sympathy for someone failing to wear a concealed money belt when he gets pick-pocketed?

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By: Kaleberg http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47540 Tue, 02 Jul 2013 03:24:00 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47540 1) This is why so many people prefer pay day lenders as their predators of choice. Really. Unlike banks, the pay day lenders give you the up front charges for every darned thing. They might be steep, but there are no surprises.

2) Banking as we practice it is basically obsolete. We should all just have Federal Reserve retail accounts or Treasury accounts and cut out the middleman. Computers and databases are dirt cheap to operate these days. The whole rationale for banks has vanished.

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By: GRRR http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47539 Tue, 02 Jul 2013 02:38:32 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47539 Hey, someone has to pay for those Citi Bikes. It turns out, that person was *YOU*, Felix.

On a more serious note, they cut my 19 year-old credit card because of disuse. If you’re not making them money, you’re not a valued customer, apparently.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47538 Tue, 02 Jul 2013 02:18:09 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47538 @Felix… I am so sad for you and your readers… there is no more damming condemnation of your cute little credit union possible than to admit you are a Citibank customer. Why on earth would you give them any of your time, money, or energy. In doing so you admit for the world to see that there are some things that Citi does better than your CU, or worse that Citi does some things that your CU can’t do at all.

Sadly that is almost certainly true. My little community bank excels at everything we do. Yet we simply can’t match Citi’s international services, we don’t offer credit cards at all, no brokerage either. For all it’s faults it seems that Citibank does still have an edge serving highly educated globe trotting finance bloggers.

Kudos at least for calling them out for their unethical business practices.

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By: Bodyopponentbag http://blogs.reuters.com/felix-salmon/2013/07/01/adventures-with-free-checking-transatlantic-edition/comment-page-1/#comment-47537 Mon, 01 Jul 2013 23:48:16 +0000 http://blogs.reuters.com/felix-salmon/?p=22190#comment-47537 Chase allows auto payment of the full amount due.

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