Banking games II

                Ahh, the perfect way to start this section of our series arrived in my mailbox today. Banks use all sorts of marketing material to increase their “Share of wallet”. (Remember that phrase from our first lesson?) You will see commercials on television, banners at sporting events, borders of the newspaper announcing free checking accounts, banking center call nights, and of course direct mail.

                Most of the time, the bank asset gathering machine is moving so fast that one department does not know what the other department is doing. If you, as a consumer today, think that you are anything more to your bank or any other business than a profit center then you are not being realistic. Let’s face facts. Anything that they offer to you is designed to make them money. It is not to make your life more convenient, work harder for you, or to increase your lifestyle.

                Today’s case in point for this rant is the credit card. The almighty plastic! In this day and age, a perfect way for your bank not only to increase your indebtedness to them, but to also track your spending habits so that they can sell that information to other marketers wanting a share of your wallet. I know, I know, they don’t sell your information. Let me use the vernacular of the industry. “We share your information with our affiliates”

                When they are “wooing” you as a non customer the deals just pour out don’t they? No interest for a year on balance transfers. Low fixed interest rate for as long as you have the account. How about cash back on your purchases? Free airline tickets, three nights hotel accommodations, and on and on. Of course once you’re a customer and have a nice balance that they can leach a fat interest payment off of, things begin to change. Let a payment be one day late and all of a sudden that institution that used to send you love letters to get your business is slapping you with $30.00, $40.00, or even $50.00 penalties. Then, on top of the penalty “bitch slap”, you get a notice that they have to raise your interest rate because of your heinous mis-use of their card. Now we are not talking about a point or two. Or even three points as a penalty. They will jack that thing up to the maximum allowed, 19.9%, 21.9% or higher. Oh yes, your local friendly financial institution is here for you folks. Whatever you need, they do it all for you.

                Aside from the late fees and rate increases, God forbid that you accidentally get close and creep over the limit of the card. That’s a nice fine on your account and credit record also.  I’ll tell you one they get you with by taking advantage of you not thinking it through. You get this letter in the mail with these convenience checks to transfer the balance from other cards to a low rate. You forget or do not read the fine print about the balance transfer fee. You transfer the balance and then find out you went over the cards limit by the amount of the balance transfer fee.  Boom! $50.00 bucks on top of the balance transfer fee. Think that’s it? Boom! Because you went over, now they raise the rate on the card. Well, after receiving the two letters that I got today, I am cancelling my cards. Take a look at the video to see how stupid banks can be when they get so large that one department does not know what another department is doing.

                So what do you do when the inevitable fee for something comes at you? Eventually it will you know. Why do I say that? Because one day for some reason it might take 10 days for that payment to make it to the processor and wind up being late, which is not your fault but you are going to pay the fee anyway.  The bank really doesn’t sweat it though, because thanks to “Check 21” they will be able to yank that money from your account as soon as they open the envelope and scan the check. Check 21 was the act that banking lobbyist pushed through the system by spending millions of dollars so that they didn’t have to send that check back to your bank to get it cashed and receive your payment. They just scan it and send for the money electronically. Sounds like a good idea huh? It should work both ways right? I wonder why then they still make us wait when we deposit a check to our account for it to clear? Oh that’s right. It’s ok for them to make money off the float or our cash but they need to get theirs immediately. I forgot, how silly of me.  Anyway, if you do get hit with the fee and you just made a mistake. Call the customer service line and make the case for why it should be waived. If that doesn’t work go into your local bank and talk with the manager and try there. Strike out again? There is always another bank out there looking to increase their share of your wallet!

                I have run out of steam again. Good hunting and don’t take it anymore from the banking system. Get mad, get out of debt. Make them beg you to use their money! And then don’t!