I See An America

Link: http://www.iseeanamerica.com

President Obama is meeting with the credit card execs to hammer them about usury-like interest rates and add-on fees. Great! About time!

I'm also concerned with those who've fallen on harder times than just higher credit card interest charges. I'm talking about the guy who's unemployment benefits ran out, he's literally living hand to mouth. As this financial spiral reaches the point Richard Farina called, "Been down so long it looks like up to me!" the person finds themselves unable to open a bank account. Why? Because he bounced checks to pay for food and his bank closed his account and put a "ding" on his record so no other bank would touch him.

He must now resort to a check cashing service. If you think credit card rates are usury-like you should check out the check cashing charges. Next this person has to get money orders or stop by in person to pay his electric and phone bill. Inevitably, this person falls behind in his payments to the point where their service gets cut off. Now they have to pay re-instatement charges, which can be very expensive, to get their service turned back on.

The end result? The poorest of our working class find themselves paying $200 to $500 more PER MONTH in "money fees" than their credit card counterpart just to get through the month. This can easily represent HALF of their total income for the month, BEFORE taxes.

There's a simple remedy. US Government guaranteed bank accounts, so these people can sign up for one to cash their checks for no fees, with the ability to write checks and a debit card with NO ATM FEES. Sort of a bank of last resort. (And if they screw this up, they're on their own.)

By the way, what's the deal with ATM transaction charges? You do the bank a favor by not using any employee time and the bank charges you extra? Seems to me the Bank should be paying us for using the ATM.