To: President Donald Trump, The United States House of Representatives, and The United States Senate
End Minimum Balance Fee Abuse by the Banks
Congress: Please act to prohibit banks from charging customers to borrow our money; mandate that banks close the chasm between the amount of money they accept to open accounts and their minimum balance requirements (which is often a gap of over $1,000), and prohibit the banks' abusive practice of charging NSF fees on overdrafts that their Minimum Balance and other "service" fees create.
These practices are abusive to Americans, specifically lower-income Americans, especially during times of economic crisis. The banks use these practices to wrest a steady stream of ill-gotten money from the people who can least afford it. Other businesses are prevented by law from engaging in such unsavory practices. It is time to bring the banks into line.
These practices are abusive to Americans, specifically lower-income Americans, especially during times of economic crisis. The banks use these practices to wrest a steady stream of ill-gotten money from the people who can least afford it. Other businesses are prevented by law from engaging in such unsavory practices. It is time to bring the banks into line.
Why is this important?
Any average American who has a bank account knows the ever-present threat of the Minimum Balance Fee -- that insidious fee the bank charges you when your balance falls below the level of money they insist you keep in your account. Granted, this is nothing new in the banking industry. But why in the world should we pay the bank to lend it our money? Well, knowing full well that there isn't a US Congressman who has the gumption to stand fully against the banks on the matter of charging minimum balance fees, I propose a compromise:
Whereas most banks will open a checking account for as little as $25, but require their customers to maintain a minimum balance of $1,500 to avoid fees (which is quite a large gap), and knowing that the average customer is often stretched to keep that much cash at the bank's disposal and, consequently, out of their own reach, it is obvious that the banks do this in order to rape their lower-income clients. It is an insidious practice, as it puts many customers into debt the moment they begin lending the bank their money,
Therefore, I propose that Congress pass legislation that makes it illegal for a bank to open a checking or savings account for any amount below their minimum balance requirement.
The benefit of this is that banks will either have to accept a significant loss in new clients (which they don't want), or they will have to severely drop their minimum balance requirements to levels attainable by a much greater number of Americans.
Furthermore, I propose that Congress also pass legislation forbidding banks from charging overdraft (NSF) fees on accounts that they have service-charged into overdraft status. If assessing a service charge will effectively wipe out an account, the bank should be limited to only one of two actions: either forgo the service charge, or forgo the overdraft fee. No more double-dipping!
There are laws against auto mechanics breaking things in your car and then charging you to fix them, or doctors intentionally introducing viruses into your body and then charging you for the cure. Charging an NSF fee after creating an overdraft in a customer's account is the same rotten practice, and should definitely be made illegal.
Please sign and pass this petition along to your friends!
Whereas most banks will open a checking account for as little as $25, but require their customers to maintain a minimum balance of $1,500 to avoid fees (which is quite a large gap), and knowing that the average customer is often stretched to keep that much cash at the bank's disposal and, consequently, out of their own reach, it is obvious that the banks do this in order to rape their lower-income clients. It is an insidious practice, as it puts many customers into debt the moment they begin lending the bank their money,
Therefore, I propose that Congress pass legislation that makes it illegal for a bank to open a checking or savings account for any amount below their minimum balance requirement.
The benefit of this is that banks will either have to accept a significant loss in new clients (which they don't want), or they will have to severely drop their minimum balance requirements to levels attainable by a much greater number of Americans.
Furthermore, I propose that Congress also pass legislation forbidding banks from charging overdraft (NSF) fees on accounts that they have service-charged into overdraft status. If assessing a service charge will effectively wipe out an account, the bank should be limited to only one of two actions: either forgo the service charge, or forgo the overdraft fee. No more double-dipping!
There are laws against auto mechanics breaking things in your car and then charging you to fix them, or doctors intentionally introducing viruses into your body and then charging you for the cure. Charging an NSF fee after creating an overdraft in a customer's account is the same rotten practice, and should definitely be made illegal.
Please sign and pass this petition along to your friends!