They’re at it again. The more money banks make, the more they stick it to their customers.
Never was that so true as this week, as several banks reported record-high profits.
Bank of America was first – with a record $5.9 billion in profits for the third quarter.
Wells-Fargo didn’t do too badly either – a record $4 billion profit in the third quarter, up 21 percent from the second quarter.
Yet, at the same time, B of A has already announced a $5 monthly fee for using your debit card like a credit card, to make purchases. And Wells-Fargo says it’s testing the same kind of fee.
This is nothing less than highway robbery. There is no justification for it. The use of a debit card doesn’t cost banks money. It actually saves them money. Back in the 80’s, Visa reported that paying by credit card, instead of by check, actually saves a bank anywhere from 55 cents to $1.60 per check. That savings is a lot higher today.
Congress should crack down on this latest attempt by banks for fleece their customers. But if they don’t, and they probably won’t, consumers have the ultimate power: Take your money out of the big banks and put it in a community bank or credit union.
That’s my parting shot for today.