The GOP stole my UI compensation, and as a result my bank profited $140 from my overdrafts

[tridim]

I'm guessing that I'm not the only person in America that was caught off guard this morning at the bank. I thought I was safe for another tier of federal UI. Wrong.

I wonder how much profit the banks made after the GOP said NO to unemployed Americans? A million? A billion? More?

Maybe I'm overreacting, but in my world 2 + 2 always equals 4, and we all know the GOP wants nothing more than to make the banks richer on the backs of people who are struggling. IMO this is the shittiest thing the Republicans have done in a long time. We need to make it a top issue, because it is 100% indefensible.

[Skink]

1. So what happened a 30 dollar cup of Starbucks?

[tridim]

2. $35 bucks a pop, 4 autopay bills.

Enough money would have been in the bank had the GOP not cancelled it.

[aquart]

3. TELL your congressman. TELL your senator.

TELL your elected state representatives and remind them that unemployment is NOT disenfranchisement: You still know how to vote.

[tridim]

5. I'm really starting to fume as this crappy day grinds on..

I will be calling everyone as soon as I calm down a little.

[aquart]

7. No, put it in writing with copies of the charges.

Especially, find out if your state rep is on the banking committee. Sometimes a nice letter with official letterhead does wonders for attitude.

[hughee99]

4. Would the bank make more money on overdrafts

or by having all eligible people getting another round of UI and depositing that money (at least temporarily) in their banks? I'm not sure how the math works out on all of that.

[tridim]

6. Thanks to computers, overdraft fees are now pure profit.

I paid the overdraft charges and the bills almost immediately after finding out I was broke.

Had to borrow money for the first time in my life, and I feel awful doing so.

[hughee99]

8. I'm just wondering because, while they are pure profit,

They still end up being a relatively small percentage when you consider it against all the UI deposits they're no longer getting.

[tridim]

9. They weren't making much money from my miniscule balances.

Maybe a few pennies a month.

Today they made $140.00

[hughee99]

11. A lot of small deposits add up though,

and rather than making loans, additional money coming in allows them to buy Treasuries or "safe" investments. Then there's all the additional fees they get from people and the overdraft even after UI is renewed.

[jtuck004]

10. They don't really make anything from the money you put in. Where

they make money from that are the interests they make from the investments and loans they make with it.

Today, however, they aren't making the loans because people don't trust the risk,can't buy homes, etc.
So they are trying to make it up in bank fees such as charging for formerly free checking, fees for
overdraft protection and overdraft fees.

[hughee99]

12. Doesn't more deposits mean more fees and more money for investing? n/t

[jtuck004]

13. Unless they charge for checking, most savings or other accounts

are garnered by giving them away. That money can then be loaned out at 7, 10, 12% while they pay much lower interest to the savings account holder.

Except that homes are being foreclosed on, commercial property construction is down, businesses are not expanding or hiring, etc.
So the money that would pay the interest on those accounts is very subdued, and in some areas nearly nonexistent. There is some activity out there, but not at all what they are used to.

Now the finance bill is going to impact the fees, such as no automatic enrollment into overdraft protection (or is that gone already - I would have to check). The fees merchants pay for credit cards is going to lower, etc.

It's a little harder to be a bank these days. But unless we crater they will come back - it's a license to make honorable profits, if they would leave it at that.

I think there was a post here the other day, someone was trying to reinvest their CD and could only get about 1%?
The only way they could do better was to reduce the quality by buying bonds rated at BBB or worse. Very hard if that is part of your income.