Can you fight the banks and win?

The crazy thing is that it almost seems like the megabanks are trying to self destruct? They have virtually run amok since this credit crisis began in 2007. Everywhere you turn there are more stories about the injustices these businesses are raining down on the public. If ever we’ve seen a business model that seems to point to self destruct, we are seeing it with the big banks, investment businesses and credit card companies.

So why do we, the consumers, leave our money in the big banks; continue to run up more charges on the big bank credit cards; and continue to go to the big banks to apply for mortgages and other loans?

Doesn’t it seem reasonable that if we, the consumers, start doing something, perhaps these banks might have to take notice?

There are options out there. You do not have to leave your money in the big banks. There are smaller local and regional banks and credit unions out there that are very capable of handling your checking and savings accounts. In fact, if you do just a little research, you will probably find that the services these smaller banks and credit unions offer are comparable, and maybe even better than what you can get from the big bank on the corner.

Most credit unions and regional banks offer ATM service, free online bill pay, free checks, mortgage loans at comparable rates, and free checking and savings accounts. Some of these smaller local businesses offer even better rates and terms on some of their services than the big banks.

Yes, it is a bit inconvenient to move your money, but it is something we can do, one person at a time. Over time, small numbers can become big statements, and the banks will have to take notice.

You can transfer your credit card balances to another credit issuer and get a lower rate. The big banks are pretty much “thumbing their noses” at the public and at the new credit card regulations that go into effect next year. They are scrambling to get those rate hike notices out to you as fast as they can to beat the new credit card regulations that are supposed to protect the consumer.

Again, you can sit by quietly, fume inside, or yell and complain to friends and neighbors, or you can do something about it. People are fighting back and winning.

This can be a quiet, legal revolt. If you find it inconvenient to move your money, there are still things you can try that are legal.

You don’t have to accept increased credit card rates. Some of those who receive notices of increased rates have tried a “novel approach?” They wrote or called the banks and asked for the rate to be reduced. According to a news report I saw last night, 50% of those who made that small effort actually succeeded and had the rate rolled back. For those who fail, there are options.

If your credit is good, check around for somewhere you can transfer your balance. Those same small banks and credit unions might have lower rates. If your credit isn’t good, pay off the balance as quickly as you can, and DO NOT charge more on that credit card.

The days of “0% transfer your balance here” notices flooding your mailbox are gone. Now if you get a notice like that, pay attention. The offer is usually for a very short time, and if you read the fine print, the rate is likely to go up exponentially when the offer period is over. Pay attention to the transfer charge, and finally watch out for annual fees which are making a comeback.

A few weeks ago, one angry person posted her protest on YouTube. Ann Minch told the "evil, thieving bastards" at Bank of America they could stick her credit card debt in their "bailout pipe and smoke it," and the message resonated. Bloggers picked up her story, and she ended up on whirlwind tour of news and radio stations. In the end, B of A backed off on the rate hike, and Ann Minch won.

Please don’t just read this story and say to yourself, “I should do something too.” Do it now. If you put it off, you very likely will not act, and these banks will win continue to win.

These same banks that are taking it to us in every way they can are reporting record earnings. They continue to pay record setting bonuses to their “top employees.” Did you know that Goldman Sachs just announced that they have set aside $16.7 billion for bonus payments to their employees! Workers at the top 23 banks and investment firms will be paid a record setting $140 billion in bonuses this year while many of these same businesses have not yet paid back the TARP funds they received from US, the taxpayers they are overcharging!

Are you ready to move your business somewhere else yet?

Other stories you might like to read:
Wall Street employees to receive record setting bonuses

Resources:
Goldman bonus article
Huffington Post - Debtors revolt

Written by Shelby Bateson