Are we being gouged by Banks?

By | May 7, 2015

The large Canadian banks recently announced an increase in Banking Fees for various accounts and transactions.

I remember when the ATM was introduced to the public to make banking more efficient. The spinoff effect was that the banks began closing branches as more people moved into using the ATM saving them money.

Fees at the time were minimal even though we did argue that banking in a branch did not cost us anything so why should we pay fees for transacting on an ATM.

Fast Forward to 2015 and we are still saying the same thing. Why do we tolerate being gouged by large banks who announce quarterly profits in the billions of dollars. Wow, billions of dollars more than they ever made.

Yet, here we are as simple people using banks to handle our money. Remember, to transact with someone you need to have your money somewhere (not in your mattress). If you pay a bill you need to either do it online (modern way) or send a cheque. But a cheque needs a financial institution to cash said cheque from an account holding your money. Companies providing services do not want you to send cash in the mail (for obvious reasons).

So when is a reasonable fee acceptable. I do not believe that anyone is adverse to paying for a service. But when the service provider continually increases the fees with no apparent reason,”other than they can”, what are your alternatives?

Well, you could go to your branch and bitch and maybe someone will listen. But the next increase means repeating the procedure. Very annoying.

I saw banks as an institution available to manage and protect my funds whilst they make some money from my money. That’s fair. But then along come fees to take your money out of your account or to pay bills or to look at your money (joke).

When does it end? Is this not some sort of legal extortion. To transact with people I need a financial institution. A never ending circle of frustration.

Because we view the financial institutions as bloating their own pockets at the expense of we little people we need to send a message. Complain to your branch manager. Let them know unequivocally that this situation is unacceptable and you want them to waive these new fees.

Your choice is to switch. If many people start switching away from a branch the manager will start listening.

I am sure the competitors will find a way to bring you in without applying these fees.

At one point I was beguiled into believing our politicians would rally around the people but when they did try the conversation quickly disappeared from the news. Why?

Seniors live on small amounts of money which they trust the bank to hold for them. But when they have to pay for them holding your money that comes from their ability to survive. And that is abhorrent.

If you have an opinion or comment feel free to add it to this Blog.

 

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