Yeah, that's BS. They try to make it seem like it's really easy to avoid the fee. After all, all you need to do is have $500 in direct deposits each month, so just get your paycheck direct deposited and you're all set. Of course, not all employers offer direct deposit--especially smaller companies. If your company doesn't offer direct deposit, then you have to keep $1,500 in the account at all times. Yeah, people who work for a company so small that it doesn't offer direct deposit probably don't have $1,500 extra to keep in their checking account and probably wouldn't want to keep it in an account that doesn't earn interest if they did have it. Also, if you've ever set up a direct deposit with your employer you probably know that it rarely takes effect immediately. They tend to have a lag of 1 or 2 pay periods before they stop issuing you a check and start making the deposits. So while you wait you get to pay them $7 (or $5 if you don't want them to mail your statements). Don't worry, though. If you are short on cash they'll be glad to offer you a credit card with a mediocre variable rate (good luck trying to find a fixed rate card after regulations were changed to limit how they can raise the rate on a fixed rate card).
It's a great way to take money from people and has the added benefit of reducing payroll because people who have direct deposit don't have to visit a branch as often. Reduce foot traffic in the branches and you can reduce the number of tellers in the branches (and they'll cut staff by more than they need to so each teller will now handle more transactions each day). Now the poor saps who can't get direct deposit have to pay a monthly fee and wait on line even longer because there isn't anyone there to help them.
Wells Fargo to charge $7 fee on more checking accounts
By Blake Ellis @CNNMoney March 7, 2012: 7:51 PM ETNEW YORK (CNNMoney) -- Wells Fargo will start charging $7 a month for checking accounts in six more states, expanding on its efforts to do away with free checking accounts altogether.
While Wells Fargo (WFC, Fortune 500) stopped offering free checking accounts to new customers in 2010, existing customers were able to hold onto their free accounts. But then last year, the bank transitioned a group of existing customers -- mainly in Western states -- to the same $7-a-month accounts that it provides new customers. And now existing customers in six more states are about to be hit with the fee.
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The $7 monthly service fee will be assessed on the bank's Essential Checking account. Customers can waive the fee by maintaining a $1,500 minimum daily balance or making direct deposits of $500 or more each month. They can also get a $2 discount on the fee by opting to only receive online statements.
The bank, which has branches in 39 states and Washington D.C., declined to comment on whether this will mark the end of its rollout. It also wouldn't disclose which states would be affected by the new fee. However, CNNMoney received a Wells Fargo statement for a banking customer in New York that stated a new $7 fee would be applied to their account.
Community banks team up to fight the megabanks
The new monthly fee will be effective May 4 in the six states, and will begin showing up on June statements (if the requirements for getting the charge waived aren't met), the bank said.
"This has been a gradual change -- we've notified many customers that this change would be happening, and this is another extension of that," said a Wells Fargo spokeswoman. "We want our customers to come in and talk to us and make sure they are in the right account and getting the options they need."
can somebody explain why BAC is giving billions of dollars to borrowers up to 150,000 loan reduction, but only if they are underwater and 60 days behind payment?
i only ask because i've never missed a payment, yet i get punished again for doing so?
can somebody explain why BAC is giving billions of dollars to borrowers up to 150,000 loan reduction, but only if they are underwater and 60 days behind payment?
i only ask because i've never missed a payment, yet i get punished again for doing so?
hey, i'm in the same boat with you...never miss a payment, on time, currently considered 'underwater', and yet I get punished?
Let me skip a few payments and then they say "hey! good job, let's knock $150K off what you owe us cuz you're late with your payments!"
The joy of life comes from our encounters with new experiences, and hence there is no greater joy than to have an endlessly changing horizon, for each day to have a new and different sun.
can somebody explain why BAC is giving billions of dollars to borrowers up to 150,000 loan reduction, but only if they are underwater and 60 days behind payment?
i only ask because i've never missed a payment, yet i get punished again for doing so?
hey, i'm in the same boat with you...never miss a payment, on time, currently considered 'underwater', and yet I get punished?
Let me skip a few payments and then they say "hey! good job, let's knock $150K off what you owe us cuz you're late with your payments!"
It is frustrating. Hide some of your assets and start missing some payments. Take advantage of their system.
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with my credit union, the require you to keep 25 in savings to keep the account open. checking is free (outside of having to buy checks)
you also generally have to meet some criteria to join...ie live in a certain area, or work at certain companies....rules are pretty lax.
http://www.firstjerseycu.com/
It's a great way to take money from people and has the added benefit of reducing payroll because people who have direct deposit don't have to visit a branch as often. Reduce foot traffic in the branches and you can reduce the number of tellers in the branches (and they'll cut staff by more than they need to so each teller will now handle more transactions each day). Now the poor saps who can't get direct deposit have to pay a monthly fee and wait on line even longer because there isn't anyone there to help them.
can somebody explain why BAC is giving billions of dollars to borrowers up to 150,000 loan reduction, but only if they are underwater and 60 days behind payment?
i only ask because i've never missed a payment, yet i get punished again for doing so?
hey, i'm in the same boat with you...never miss a payment, on time, currently considered 'underwater', and yet I get punished?
Let me skip a few payments and then they say "hey! good job, let's knock $150K off what you owe us cuz you're late with your payments!"
- Christopher McCandless
I hope Edison can put it into simpleton terms for me. :corn:
It is frustrating. Hide some of your assets and start missing some payments. Take advantage of their system.