Discussion:Fee business f/k/a Banking Biz chugs along
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Discussion Forum Index --> General Chat --> Fee business f/k/a Banking Biz chugs along
| 25 June 2009 | |
| The "fee" business model for the American banking system, instead of the "making loans to people" business, seems to be what they go to Harvard to learn these days.....http://www.bloomberg.com/apps/news?pid=20601087&sid=agR2UE7gabLM
To quote: "they seek to protect fees, such as credit-card penalties that have almost doubled to $19 billion in five years. Fees imposed by banks accounted for 53 percent of industry income in 2008, up from 35 percent in 1995" WHAT? | |
Actionbsns (talk|edits) said: | 25 June 2009 |
| Here's a fee that still has me scratching my head. My husband booked a Viking River cruise for us later this year, all transactions that we are aware of originate in San Francisco and are in US Dollars. When I looked at my statement the other day, there's a $185 charge for a foreign transaction. I called them up to see what this was about. It has nothing to do with foreign currency conversion and the best explanation the voice on the phone had is that the home office of Viking River cruise is in Basel, Switzerland. She further said that when people use a vendor with headquarters out of the country, this is a routine charge. In this world economy, what vendor doesn't have some relationship outside the country? I asked her if I purchased a BMW from a local dealer and used my credit card, would there be such a charge? At first she said yes, then the irony of that sort of hit her and she started back pedalling. I purchase items from out of the country, on a smaller scale, and I've never noticed the charge. It's there simply because BofA is big, I'm not, and there's nothing you can do about it, and NO they won't remove it. | |
| June 25, 2009 | |
| Of course, Crow, that's how they make their money. That's why they can offer free checking accounts to small businesses. The question I have is how the credit card companies get around usury laws. If we have an outstanding amount due from someone, we're not allowed to charge 20% - 30%, yet that's common for credit cards.
Personally, I'm not convinced we need more regulation, however. People need to be taught how to handle their money and then be responsible for their actions. | |
| 26 June 2009 | |
| I guess I'm old fashioned!
There's a writer out there who has written a book called "Gotcha Capitalism". That's what this is. They don't make money by running their core business, they make money by gimmicks. It's a rip-off mentality that you associate with the Mob, not the corner bank. But hey, this is the new America, and we don't seem to have the will to change it, from top to bottom. | |
Death&Taxes (talk|edits) said: | 26 June 2009 |
| Anyone remember when banks used to make their money lending to others? That was back in the days of George Bailey.
So when these fees get too onerous, don't turn to these guys: http://redtape.msnbc.com/2009/06/debt-settlement-firms-under-fire.html | |
