Bank Of America Targeting Low Income Customers For Cash

By Anne Trimble

Only 4 years ago, the government made use of taxpayer's cash to pay $45 million to rescue financial institutions of America from failing like the Bank of America. Despite that noble effort, this financial institution has been implicated in many investigations for deceptive financial doings ranging from foreign-exchange to home loans. Consequently, it has paid millions in litigation. Now, the second-largest bank in this nation in terms of assets needs to grab $4.95 from individuals who are barely making it in this economy and are so desperate to get a bank account that they will accept one without any ancillary services. Is this just a sign of frugal banking practices or a sign of something larger taking place, perhaps like a tiny zit that becomes malignant. There is something weird going on here.

The bank has introduced a checkless checking account for a cost of $4.95, and this no-frills account will not permit overdrafts. It's a small fee targeted towards low-income consumers who simply require a fundamental bank account. By itself, this appears inadequate grounds to alert anybody, specifically clients or lawmakers. Yet, this chump change in their banking plan can conceal a scary tale about the financial industry and the economic situation itself.

Here are three reasons why I classify this as an anomaly:

* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.

2. This bank has actually been attempting to reintroduce the idea of a basic banking fee since 2011. The experiment started by asking banking clients in 3 states--namely, Arizona, Georgia, and Massachusetts--for a flat charge varying between $6 to $9 each month for a simple checking account. The suggestion did not work very well and the whole program was a mess. But, then, again in 2012, they tried it once more, and this time around 10 million consumers whined and complained about it.

* There are no waivers. While megabanks do have payable accounts, they likewise have certain conditions to waive the cost-- like direct deposits from employers or keeping a certain checking account balance.

Why is a multibillion dollar financial institution asking low-end consumers for petty cash? Why is it seeking a policy that that most other financial institutions consider too silly to think about? Is it from petty reasoning, unmitigated piggishness or hopeless necessity? Truthfully, our only hope as Americans is to not try and figure out this insanity but move our commitment from printed fiat money back to the only true cash, which is God's Money-- Gold and Silver.

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