Cost of Reforms-now no free checking-No Free Lunch Next?

[dex]

Wells Fargo Ends Free Checking Before New Bank Rules - Bloomberg

Wells Fargo, the U.S. bank with the largest branch network, eliminated free checking accounts for new customers as firms prepare for stricter consumer- protection measures. New basic checking accounts carry a $5 monthly fee as of July 1, said Julia Tunis Bernard, a spokeswoman for the San Francisco-based bank. Wells Fargo also established minimum deposit requirements for waiving the fee, she said



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The costs of reforms are adding up. So far the ones I've encountered are:
- Citi visa charging $60 annual fee - eliminated if you spent 2,400? - I can canceled

- No rollback option on my health ins
- If I get a new health plan it is a 'new' health plan; subject to congress' additions


These type of things really hurt the poor. They can not afford the minimums to avoid the fees.

I wonder what is next.

[LOL!]

Looks like a total non-event to me. Almost all the past "free-checking" accounts had a minimum balance and/or direct-deposit requirement, so WF is just re-implementing that.

So to get free-checking it still appears that there are very low hurdles to jump over.

But I like best the "we pay YOU to have checking at our bank" accounts. USAA was like that for a while. They haven't offered to pay me $2,000 this year to keep my account open like they have for the past 3 years. So I had to go to the highest balance I've had with them so far: $0.00. Negative balances were always better.

[FUEGO]

Speaking of free lunches. The 0% no fee balance transfer offer is back!!!

https://applications.usbank.com/oad/...rType=customer

Anyone else like borrowing free money? Maybe use this money to pay those checking account fees.

[Emeritus]

Quote:

Originally Posted by dex Wells Fargo Ends Free Checking Before New Bank Rules - Bloomberg Wells Fargo, the U.S. bank with the largest branch network, eliminated free checking accounts for new customers as firms prepare for stricter consumer- protection measures. New basic checking accounts carry a $5 monthly fee as of July 1, said Julia Tunis Bernard, a spokeswoman for the San Francisco-based bank. Wells Fargo also established minimum deposit requirements for waiving the fee, she said ******* The costs of reforms are adding up. So far the ones I've encountered are: - Citi visa charging $60 annual fee - eliminated if you spent 2,400? - I can canceled - No rollback option on my health ins - If I get a new health plan it is a 'new' health plan; subject to congress' additions These type of things really hurt the poor. They can not afford the minimums to avoid the fees. I wonder what is next.

OFGS
Transparency is not a cost. Bank accounts cost banks to operate. Transparency makes banks compete on published obvious costs.

If we want to help the poor we pay the cost of accounts publicly

Concealed fees only help banks and the folks they pay in congress to shill for them

Standardized weights and measures , including open and transparent pricing is one of the cornerstones of an efficient marketplace.

[Gone4Good]

Quote:

Originally Posted by Emeritus Standardized weights and measures , including open and transparent pricing is one of the cornerstones of an efficient marketplace.

But then you foreclose the possibility of the careful shopper (free checking) being subsidized by those stupid enough to get ripped off (overdraft fees).

[brewer12345]

Its a competitive market place. If your bank starts charging fees and other banks or credit unions offer the same service for free, go elsewhere.

[Meadbh]

Checks are becoming obsolete technology. This drives up the unit cost of processing a check. It's totally understandable why the banks are passing the increased cost on to customers. It's an incentive to get online or use debit.

Your checkbook is obsolete - MSN Money

[dex]

Quote:

Originally Posted by Meadbh Checks are becoming obsolete technology. This drives up the unit cost of processing a check. It's totally understandable why the banks are passing the increased cost on to customers. It's an incentive to get online or use debit. Your checkbook is obsolete - MSN Money

Good point - I don't use check - except to pay taxes. I think those on the lower end of the economic scale probably use them more than the middle class. Also, I think those who follow Dave Ramsey use them instead of credit cards.

[rayvt]

Yup. We still are using checks that show our old address----which we moved away from 5 years ago. We pay almost everything now by online bill pay. Heck, even our latest car licence tag renewal was paid by online check.

Most of the paper checks we write are for birthday presents to relatives.

[Westernskies]

Quote:

Originally Posted by brewer12345 Its a competitive market place. If your bank starts charging fees and other banks or credit unions offer the same service for free, go elsewhere.

+1