Beware of new overdraft fee trick

Chase found a new trick to generate overdraft fees: automatically transfer some of the funds deposited into checking into the account holders savings account. (story)

Phishing emails actually not Chase’s fault

Here is one thing that is NOT Chase’s fault: Their brand and URL was one of the three most frequently phished in 2009. So, if you are a Chase customer, be careful about responding to emails that look like they are from Chase. (article)

iPhone app

Finally some good news having to do with Chase. As a fan of the iPhone, I can say I am a little bit jealous that Chase now has an iPhone app, which has gotten at least one good review. I love my bank, but an iPhone app would be nice.

Short sale

Here is an article that specifically provides information on dealing with Chase on a short sale. It seems as if Chase has seen the light and realizes that in many cases approving a short sale quickly will save them quite a bit as compared to foreclosure.

Yet another “Chase sucks” website

Here is another site dedicated to sharing Chase frustrations.

Another “Chase sucks” blog

Here is another blog dedicated to Chase’s home finance unit sucking.

Banks are pissed and not fun anymore

There is no question in my mind, banks are pissed at regulators and customers for throwing a wrench into their profit making machines, and they are taking it out on us. If you’ve seen the secret history of the credit card, you know that the banking and credit card industry engineered their profit machine by setting people up to fail with things like higher credit than they deserved, monthly payments that were far too low, racheting up interest rates for any (and often no) reason, and automatic overdraft protection that generates tons of overdraft fees. Now the government has tightened regulations through the Feds new rules and the Credit Card Reform Act of 2009 which outlaws many of these practices and they are further discussing the overdraft issue, and consumers are defaulting at record rates.

Banks are pissed as the era of easy money is quickly fading into history. I recently received a notice form Bank of America that my account was switching from a fixed rate of 9.9% fo a variable rate that is also currently 9.9%. Sounds the same but this is also a trick, as the prime rate the variable rate is based on is historically low at 3.25%, meaning that my rate will average much higher over the next decade. They are doing this to me, a good customer, with perfect credit, a perfect payment history, and I use my credit cards a lot. They claim they are doing this to all their accounts.

Perhaps it is time to start paying for things with cash again. Merchants will thank you, as it saves them 3%. For businesses like a grocery store, which has net margins of about 1%, this can make a HUGE difference.

Banks need to be taught a lesson, the time of easy money and abusing customers is gone. It is time they started behaving like the revered institutions they once were again.

Radio WAMU

How odd that Washington DC’s NPR station is called WAMU (link)