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Layton: banks gouging Canadians
January 25, 2007 - 4:15pm
“Canadians should not be charged by banks when they deposit, withdraw or transfer their own money using an ATM,” Layton said.
At a Toronto event this morning, Layton proposed amendments to the federal Bank Act that would eliminate the charges that customers face for using automated tellers.
According to the NDP, Canadians used bank-owned ATMs to make over 700 million withdrawals in 2005, plus 400 million other transactions - paying an estimated $420 million in fees to do it.
“It's working families that are hurt most by these outrageous fees,” Layton said in a news release.
Toronto Star Article
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Good to see Jack mentioned working families again. Thank goodness. Otherwise, how would we know who he supports?
So, apparently banks have a legal obligation to hold people's money for them for free - and give it to them 24/7 from thousands of locations across Canada?
People don't have to use banks. They can use credit unions, or ING and get rid of the fees if they want to.
Most banks that I have used offer at least 2 free withdrawals from your own bank. But people 'choose' to pay a buck or two for the convenience of getting their money more often than twice a month, or using the teller or a different service.
These are not exploited people. Now if Jack wants to do something for the poor (and he does as long as those poor people have jobs and kids) - then he should probably direct his efforts towards cheque cashing and payday loans places who are actually exploiting the poor.
The banks in this country have allowed a parallel system to emerge in the form of cheque-cashing and "payday loans" firms which are illegal under Canadian law. They've done that because, contrary to their mandate, they do not want to deal with everybody in Canada. If you're working poor, they are not interested. If you want your measly paycheque RIGHT NOW, too bad, wait five days for all amounts over $100, even though they don't need five days to confirm a cheque. So people are driven to scams like MoneyMart.
In light of all that, I'd love to see the banks take a big hit and it's about time the politicians put the heat on them.
You could be right. It might be their way of discouraging low income people from doing business with them, as the cost of providing service to low income people is probably more than the profit.
From my experience, the difference in service from being low income to high income is pretty dramatic.
If you are low income, they make you wait a week just to get an appoinment to open your account. If you are high income, you're ushered into the private offices immediately.
It's something I would like to find out more about.
It's revealing that the Bankers Association responds with name calling rather than with any solid evidence to justify charging ATM fees on their "competitor's" machines.
And Jim Flaherty was also put on the defensive, and is now asking the banks to justify the fees.
Gov't to the Banks: stop charging user fees. or else.
the Banks: OK.
then they turn to the Customers: you better get ATM insurance, since we will no longer be covering any fraud that may occur. you're on your own.
the Customers to the Gov't: whine! the Banks are forcing us to get user insurance ....
is there any law currently on the books that says that the Bank has to repay money stolen from accounts via the ATM? they generally make you fill out some forms, give you a new card, and refund the money, mainly because they don't want the end-user to know how easily fraud can happen (bank cards are not the most advanced, secure technology). take away user-fees (which i do hate) and maybe they'll swat back.
As a banker, I would like to point out that if a person chooses an appropriate account, selects a good bank plan, and doesn't try and fraud the bank, a person can pay very little in bank fees. My bank does not charge for any ATM transactions on a chequing account, as long as the customer is on a banking plan. Also does not charge for performing transactions with a teller. As far as holds go, if you are a good client, you won't have 'just a lil bitta' money available to you right away. Any situation involving money requires trust. If the bank trusts you, they'll let you have more money. Your cheque for several thousand dollars bounces? Back to square one.
As far as the Layton involvement goes - The reason why competing FI's charge you $1.50 to use their ATM is because it costs the bank money to ship cash around, and branches can only have a certain amount of cash on hand at all times. Banks don't like handing things out to non clients, so they charge them. And if your really lucky, you get super gouged and pay $4 for the ATM at the bar/711. It really bugs me to see Layton saying that banks are gouging - if crossing the street to not pay the $1.50 is easier than going into the atm that's right in front of me - Then people deserve to pay it.
And as far as bank line ups go? Whoever decided that Welfare Day and Pension Day were to be on the same day - Is effed in the brain.
As well - If you don't like dealing with a major financial institution, CU's man, is the way to go.
[ 26 January 2007: Message edited by: Kaitlin Stocks ]
I bank at Scotiabank. If there is a Scotiabank machine handy I will cross the street to use it, but the machines belonging to your own chartered bansk are getting increasingly rare. ASt the airport for example you have no choice but to use this damn "no-name" ATMs that charge $3/per transaction.
The City of san Franscisco actually passed a referendum forcing ATms there to stop charging such usurious transaction fees. We need to do the same. I don't say that there shoudl never be any fees at all, but there shouodl be some controls.
Strong centralized financial institutions lie at the core of every successful socialist economy. Decentralized banking systems tend to support radical innovations and short-termism. Large centralized banks engage in long-term relationships with private firms, and can provide the necessary capital for plant expansion (aka. jobs) and Schumpeterian process-oriented R&D in mid-tech sectors.
The maintenance of viable mid-techs (manufacturing jobs) is key to a successful welfare state. Such a state of affairs necessitates an egalitarian education system (because the median worker needs to be well-educated), as opposed to a polarized one (like the US). Furthermore, radical innovations may lead to substantial economic dislocations, by altering the success of either capital or labour intensive industries. Furthermore larger banks (like larger unions) can better take into account externalities (like the economy) in their planning.
The treatment of the banking issue as one of consumer advocacy is the kind of short-sightedness that doesn't surprise me, coming from Jack. Nationalizing the banks isn't going to happen. Merging them, however, may well be the next best thing (further the promise to support bank mergers can be traded to the Conservatives for a prize of equal or greater value).
If European banks don't need to charge, why do Canadian financial institutions?
The bankers now this and take every opertunity to take as much money from you as possible...
YOu have no choice but to have some form of bank...
They needed our money to servive as a business now that we need banks to live our lives propely they are taking every advantage of it.
From creating money and lending it to governments and people to collecting fees for you to accsess your money...
The banks need to be taken over by the people and used for societies needs as opposed to promoters of capitalism...
Well, that's pretty much what credit unions are supposed to be about. But as Albireo has said in another thread about the credit union we use, I get gouged in fees just as much by my credit union as by any large bank, so I don't know.
Bank Fees also keep me from getting too drunk. When I'm at a club and I've run out of beer money, those 2 dollar fees on the machine are the one thing that stops me best [img]smile.gif" border="0[/img]
You want to stand in line again everytime you get paid. You can have the old days. I love my internet banking, my telephone banking, and my ATMs, but not my MTV. [img]wink.gif" border="0[/img]
I really think the banks shoot themselves in the public relations department by not offering low income bank accounts. Provide twenty (wild guess) free transactions a month if you use their system. Have their cheques processed immediately, etc.