tag:blogger.com,1999:blog-5465015914589377788.post8865821927525696456..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Many Bank Fees Should be Considered Interest ChargesMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5465015914589377788.post-42299805289194676152020-10-31T15:23:37.708-04:002020-10-31T15:23:37.708-04:00The second reply is to Canadian Capitalist's c...The second reply is to Canadian Capitalist's comment:<br /><br />Thanks for the mention Michael. I was going to comment on the point that gene raised. Hey, we charged $350 instead of $35 because that's what you've been asking us to do for years! Yeah, right.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-66481710001268433362020-10-31T15:22:50.826-04:002020-10-31T15:22:50.826-04:00The comment above is a reply to nmm66's commen...The comment above is a reply to nmm66's comment:<br /><br />It's nice to read a post about bank or credit card fees that isn't just a comment from some raving lunatic at CBC.ca. Your recommendations make logical sense.<br /><br />Sounds like I'll have to make some time to watch this video sometime today.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-18119575582749020482010-01-28T15:26:07.039-05:002010-01-28T15:26:07.039-05:00Aolis: Thanks for the information. So, what I...Aolis: Thanks for the information. So, what I'm calling for then is an expansion of what is considered interest to include overdraft charges and other "courtesy fees" invented by lenders to get around the 60% legal cap.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-65564397934139878752010-01-28T15:10:14.302-05:002010-01-28T15:10:14.302-05:00Section 347 of the Criminal Code prohibits an inte...Section 347 of the Criminal Code prohibits an interest rate that is more than 60% per year. This interest includes fees but specifically not overdraft charges. I believe there was a lawsuit on the matter.<br /><br />There was a bill to reduce the amount to 35% over the Bank of Canada rate. This makes sense to me but it failed.<br /><br />Quebec prohibits pay day loans.Aolisnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-72905501405169048862010-01-28T11:55:47.961-05:002010-01-28T11:55:47.961-05:00nmm66: I find a lot of the discussion of bank fee...nmm66: I find a lot of the discussion of bank fees to be reactionary and unhelpful. People seem to think that the problem with banks is the bonuses paid to top employees. This is wrong. The real problem is that the bonuses were based on false profits. If the banks had taken income charges corresponding to the risks they took, then the profits would have evaporated along with the bonuses. If a bank finds a way to be genuinely very profitable without taking undue risks and it provides useful services, then its employees deserve bonuses.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-74628896304336316252010-01-28T11:01:36.839-05:002010-01-28T11:01:36.839-05:00Mark: I'm actually not against banks setting ...Mark: I'm actually not against banks setting fees for services rendered. But, when it isn't really a service but is just a form of interest, we need a cap on the interest rate. Of course banks will claim that everything is a fee or "courtesy fee" rather than a form of interest. That's why we need legislators to step in and define what is and is not interest.<br /><br />CC: In that same vein, I want to assure everyone that it was years of working with ants as a kid that led me to the understanding that they actually wanted me to use a magnifying glass on them.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-84022069728347179972010-01-28T08:55:56.666-05:002010-01-28T08:55:56.666-05:00By most people's standards, few bank fees are ...By most people's standards, few bank fees are reasonable.<br /><br />Add to the fact that banks are making their income from those fees (instead of the old-fashioned way; earning it) and it's going to be next to impossible to fix the problem.<br /><br />A small start has been made, but is far too little.Mark Wolfingerhttp://blog.mdwoptions.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-94529555776544132010-01-28T01:28:03.216-05:002010-01-28T01:28:03.216-05:00Gene: You're right. That was a part that mad...Gene: You're right. That was a part that made me laugh out loud. I didn't believe him for one second.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-8967248839844190022010-01-28T00:45:11.426-05:002010-01-28T00:45:11.426-05:00It was interesting to see the bank lobbyist try to...It was interesting to see the bank lobbyist try to explain the rationale for ordering the purchases from highest to lowest.<br /><br />He claimed it was in the consumer's interest and that customers have told the banks that's the way they want it. Oh, he says, not in any survey or anything, just from years of talking to clients. What a crock.<br /><br />Let's see... do I want to use all my available balance on a series of ten transactions before getting hit with one $35 overdraft charge, or would I rather have my balance consumed by a large transaction, then pay $350 in overdraft fees?<br /><br />It's astonishing they can re-order the transactions to maximize fees. And this is just one example of US banking transgressions.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.com