We appreciated The Herald’s Nov. 27 editorial regarding bank fees, because something similar happened to us. The story: An electronic deposit arrived late at our checking account because a holiday fell next to a weekend. As a result, we went “into the red” to the tune of $483, involving three transactions. The Big Bank’s computer in Cleveland charged us $96 in fees (3 x $32). Our electronic deposit then arrived two days later, canceling the deficit. To put this in “loan terms,” we received a $483 loan from the bank for two days at an astounding annual interest rate of 3,600 percent! By comparison, small time loan sharks are feeble minnows. (A local payday loan firm has a maximum interest rate of 391 percent, and by law it must be posted.)
Apparently, the legal language regarding “fees” doesn’t need to make any disclosure of or reference to “interest rate.” (Note: the bank also had ample of our money in CDs and a money market account, whose funds are essentially as liquid as a checking account.)
Our local bank person graciously rescinded the fees, knowing that we were trustworthy customers. However, we did subsequently change our account to a new “local bank.” The whole episode was somewhat reminiscent of the shenanigans at Enron. As Woody Guthrie sang, “Some people rob you with a pistol and some rob you with a fountain pen.”
Bank customers: Examine your transactions closely! If they are unfair, demand adjustment from your bank.
JOHN and DEANNE LINDSTROM
Everett
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