Banks Located Money "Just Lying Around"
November 10, 2011 By Melvin R. Singleterry - Associated Attorneys, LLC
Banking Fees are getting out-of-control. This article discusses some regular fees banks attach to their clients account.
Throughout history banks have made loans based on the return that they would receive from the interest rates. Since the downturn of the economy interest rates have plummeted, and banks have now changed their profit focus to customer “fees”. These fees are quite a large source for profit that was completely overlooked until sometime during the mid 70’s. Banks finally realized the amount of money that they were leaving, “lying on the tables,” and began to make the adjustment.
Not every bank jumped at the chance to charge fees to their customers. Many banks, especially smaller local branches, were timid about charging their customers for services that had always been viewed as complimentary, but once the banks realized what a large untapped source of revenue was available more banks began to take the plunge.
Eventually smaller local branches have faded away to the larger national banks, and customers began to see that the fees were a normal charge among the larger chains. Convenience is something that was high on the customers list for choosing their bank, and only the larger national banks were able to offer this. Customers, through a lack of options or the desire for convenience, became more willing to move their business to the larger national banks.
The larger national banks were no longer run by a person of the community, and this made it much easier for banks to begin charging fees for their services. Eventually fees became the norm for all of the banks, small local branches included.
Customers now create profit margins in the billions for their financial institutions simply by paying imposed fees. The benefit for the bank is that not only are they earning their money, but they do not have to lend out the money to turn a profit. This has made establishing a line of credit or receiving a loan from your bank much more difficult. While the government is still providing funding in the billions for banks to loan at little to no interest, the banks are not as willing to lend it because they really do not need to. There are several ways that banks will charge you fees:
• Monthly account maintenance fee;
• Overdraft fee;
• Stop payment fee;
• Wire Transfer fee, both national and international;
• Cashier’s check fee;
• Online banking fee;
• Debit card fee;
• Late payment fee;
• Returned check fee;
• Various and sundry fees related to obtaining a loan; and
• Some banks even charge for the “privilege” of talking to a cashier at the bank window.
Eventually Congress and the Federal Reserve may step in increase the restrictions on what fees financial institutions are able to charge. While this is a possibility, the people in charge of Congress and the Federal Reserve are elected officials that often received strong support from these financial institutions, and are most likely not going to be making these tighter restrictions any time soon. Learn more about consumer debt law through Associated Attorneys, LLC.
ABOUT THE AUTHOR: Melvin Singleterry
Melvin R. Singleterry, is a practicing attorney who specializes in consumer debt law including debt reduction, credit card debt negotiation and debt settlement, and unsecured debt relief. Singleterry, who holds Bachelor and Master of Arts degrees from Oklahoma State University and a Juris Doctor from The University of Oklahoma, has practiced in both State and Federal Courts. He has been a trial attorney in both civil and criminal cases and has served as a Court Appointed Trustee in Federal Bankruptcy Court. His practice has included criminal law, corporate law, contracts, personal injury, family law, and consumer law, etc.
Copyright Melvin R. Singleterry - Associated Attorneys, LLC
More information about Melvin R. Singleterry - Associated Attorneys, LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Not every bank jumped at the chance to charge fees to their customers. Many banks, especially smaller local branches, were timid about charging their customers for services that had always been viewed as complimentary, but once the banks realized what a large untapped source of revenue was available more banks began to take the plunge.
Eventually smaller local branches have faded away to the larger national banks, and customers began to see that the fees were a normal charge among the larger chains. Convenience is something that was high on the customers list for choosing their bank, and only the larger national banks were able to offer this. Customers, through a lack of options or the desire for convenience, became more willing to move their business to the larger national banks.
The larger national banks were no longer run by a person of the community, and this made it much easier for banks to begin charging fees for their services. Eventually fees became the norm for all of the banks, small local branches included.
Customers now create profit margins in the billions for their financial institutions simply by paying imposed fees. The benefit for the bank is that not only are they earning their money, but they do not have to lend out the money to turn a profit. This has made establishing a line of credit or receiving a loan from your bank much more difficult. While the government is still providing funding in the billions for banks to loan at little to no interest, the banks are not as willing to lend it because they really do not need to. There are several ways that banks will charge you fees:
• Monthly account maintenance fee;
• Overdraft fee;
• Stop payment fee;
• Wire Transfer fee, both national and international;
• Cashier’s check fee;
• Online banking fee;
• Debit card fee;
• Late payment fee;
• Returned check fee;
• Various and sundry fees related to obtaining a loan; and
• Some banks even charge for the “privilege” of talking to a cashier at the bank window.
Eventually Congress and the Federal Reserve may step in increase the restrictions on what fees financial institutions are able to charge. While this is a possibility, the people in charge of Congress and the Federal Reserve are elected officials that often received strong support from these financial institutions, and are most likely not going to be making these tighter restrictions any time soon. Learn more about consumer debt law through Associated Attorneys, LLC.
ABOUT THE AUTHOR: Melvin Singleterry
Melvin R. Singleterry, is a practicing attorney who specializes in consumer debt law including debt reduction, credit card debt negotiation and debt settlement, and unsecured debt relief. Singleterry, who holds Bachelor and Master of Arts degrees from Oklahoma State University and a Juris Doctor from The University of Oklahoma, has practiced in both State and Federal Courts. He has been a trial attorney in both civil and criminal cases and has served as a Court Appointed Trustee in Federal Bankruptcy Court. His practice has included criminal law, corporate law, contracts, personal injury, family law, and consumer law, etc.
Copyright Melvin R. Singleterry - Associated Attorneys, LLC
More information about Melvin R. Singleterry - Associated Attorneys, LLC
View all articles published by Melvin R. Singleterry - Associated Attorneys, LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
