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Politics : Liberalism: Do You Agree We've Had Enough of It?
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To: Sidney Reilly who wrote (119672)12/13/2011 12:24:48 PM
From: Jorj X Mckie4 Recommendations   of 224749
 
A predatory lending practice would be the current use of "bounce protection" on checking accounts which really amounts to a short term loan at murderous interest rates. At $30 per "loan" with a $500 cap the banks are raping the poor people who can't add or for other reasons bounce checks. The $500 is really a short term loan that has to be paid back in 30 days. If someone took the whole $500 at $30 for the loan thats 72% interest on a yearly basis. But usually the loan is smaller because people don't plan ahead to bounce checks. So a $30 check (loan) that bounced would actually cost the consumer 1200% on a yearly basis because the bank made you a short term loan (30 days) and paid the $30 dollar check.

I would certainly agree that anyone who agrees to those terms is not making a sound business decision.

But, the consumer has several choices. The first is to not have a bank account. The second is to avoid writing checks (I never write checks on my checking account). The third is to simply not bounce checks. The fourth is to go to a financial institution that doesn't have such punitive policies for bounced checks.

Since the bank is not tracking people down and forcing them to open an account with them and thus agreeing to the terms of use, it can hardly be considered predatory.

The one thing that the OWS movement got right was to encourage people to abandon their accounts with the banks that do not offer an attractive product. That's the free market at work.

This is more of an indication of sheeplike behavior of the masses. If one wants to cease being sheared, the best course of action is to stop acting like a sheep.
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