Big Banks Swiping Nose on Citzens

Sometime today Congress will be debating a banking "swipe fee" law. On one side you have the big banks, who are paid a certain fee every time a credit card is used. This fee is paid by merchants, who are on the other side of the debate, and who either absorb the cost or pass it along. At stake is about $16 billion dollars, and judging from what we read, the politicians in Washington are undecided on this issue, It amuses because one might think their time would be far better spent on issues like flooding in the country's belly region; or wars in places like Afghanistan, Yemen, Libya and Syria; or the absolute stagnation in the economy brought on by Republican unwillingness to put employment before ideology.

(Presidential candidate dreamer/enthusiast Tim Pawlenty came out of the closet with his "economic" plan, which includes cutting taxes and conjuring 5% a year growth. Which is quite amazing actually. I don't think anyone, whether Reagan, Bush, or Obama, has cut taxes and reaped a windfall of revenue or sudden growth.)

So while those in Washington debate whether to side with banks or retailers, we sit at home, reviewing the letter we just received in the mail from Bank of America Theftocracy Corp. It reads:

"On August 6y, 2011 your Bank of America My Access Checking account will change to a new Bank of America Enhanced checking account. Below you will find all of our new checking accounts available to you."

Keeping in mind that the account we have was opened over the internet, and we were instructed never ever to use a live human lest fees result, it boggles the mind that the account they have decided to switch us over to automatically is the "Enhanced" account that carries a $15 fee. The only way to kill the fee is to deposit $2000 every month, maintain combined balances of $5000 in all accounts, or use my linked BofA credit card. Of course, we don't have any of that, and if we did, it would be sitting in a brokerage account and we would be sitting in Cayman.

We were forced to call Bank of America and have them switch our account to the new  "ebanking" account that actually resembles the old "online" account. It's hardly an enhanced experience to go from no fees to $15 fees.One of the benefits of the super duper "Premium" checking is the ability to have no fee overdraft protection using your savings or checking (aka your own money). I suppose it's an account we can aspire to while looking in the branch window longingly and un-serviced by real humans.

The banks have blamed Washington for these fee increases and account transformations, and one can only assume that should they lose the swipe fee argument, more fee monstrosities will be in the pipeline. Of course that also means that hastens the moment when the big banks will accidentally kill themselves. There are far too many options out there, including online accounts and solid firms like USAA that now offer their services to anyone.

It amazes that an industry that is alive due to public funds can be so arrogant toward citizens already battered by mortgage problems and growing job difficulties. That politicians can be giving swipe fees their full undivided attention is stunning. And wrong.