How is it that all the banks have sold the public out?
This article is not about the excessive (to the point of ridiculous) fees or charges all banks seem to be charging today. No, this article is about the greatest American banking scam to be played out across the nation without comment, concern or consideration by virtually every bank doing business today. The issue written about here is about charges wherein a consumer agrees, for example, to get a free credit report but has to sign up for recurring monthly charges forever unless canceling the service. Except for the predatory credit (third party) provider will not cancel the recurring charge.
All banks, or at least virtually all, will not stop the charges from being withdrawn from the consumers (their customer’s) bank account. All kinds of companies are pulling this routine with the full and admitted cooperation of the banks. In fact, if a recurring charge hits the account of a clueless customer and there’s not enough money in the account, the bank will pay the money anyway and leave the customer in overdraft status (charging bank fees for that, of course,) when it would normally not pay a charge or check if there were not sufficient funds in the account and the debit was by a ‘non-contract’ source. The bank, if really pushed about the issue, will offer to close the account and start a new one, wherein the customer loses any and all benefits of having the account with that bank over many years of loyal patronage.
Why don’t America’s banks care? Because of all the fees, they collect from this rip-off that they can then deny having any part in supporting. Online banking has supported this rip-off because people write so few checks today and usually go online only to look at the balance in their accounts. It can take many months for a customer to even figure out that there is a recurring charge being pulled from the account.
Cartoon of the Week