From the out of the frying pan into the fire dept: Customers leave banks for WalMart?

by darthfader 8 Replies latest social current

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  darthfader

  Interesting article:

  http://finance.yahoo.com/news/High-Bank-Fees-Give-WalMart-a-nytimes-3177514040.html?x=0

  Americans say they are fed up with banks. They are protesting on Wall Street and raising a ruckus over outsize fees. Now there is a surprising beneficiary: Wal-Mart.

  Geoffrey Cardone, a 26-year-old factory worker, said he dumped his bank account because he felt that he was being nickeled and dimed by fees. His new payday ritual includes a trip to the Wal-Mart here in northeastern Pennsylvania.

  “It’s cheaper,” said Mr. Cardone, who was charged a flat fee of $3 to cash his paycheck. Many check-cashing stores keep a percentage of the check, which tends to be higher.

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• 

  Berengaria

  
• 

  sabastious

  Maybe Walmart can use the extra money to buy better customers.

  -Sab
• 

  DaCheech

  I actually don't like this

  A couple of customers a week pay me with their paychecks, and I give them back the EXACT change.

  I don't take a fee.

  But being a little guy, I can only do this for 2-3 people a day
• 

  darthfader

  Pretty soon, pepole will be able to work for WalwartMart and buy all their household needs there and bank there also. I understand the the company is working on a plan to eliminate the bank and automatically "give" all their employees an account which their checks will be deposited into. They want to issue their own credit/debit cards.

  It seems to me that WalMart should just buy the USA and finish the deal instead of eating away at us one bite at a time.
• 

  talesin

  Mall-Wart,,, for your edification and amusement, darth.

  It's a conundrum. I boycotted it for many years, but when one is at a certain level of poverty, and finances are hard to manage, it's hard to stick to one's social conscience.

  There's the rub! At least, for me ...

  tal

  * and for those who are interested,,, check out IHATEWALMART.COM *

  I love it!
• 

  JeffT

  I can understand the logic. If your bank charges more than $3 a month to keep your money then cashing the check there makes sense from that standpoint. The problem is that you then run the risk of having it stolen, lost or the house burns down or something and your money's gone.

  I don't shop at Walmart, although Target probably isn't any better from a social standpoint. Walmarts just feel depressing, and I'll go to a local business if I have the option. Almost all of our food is purchased at a local outfit, although they have five or six stores now.
• 

  talesin

  It's quite logical, Jeff.

  It's not about check-cashing, exactly.

  Here's how it goes. You put your check in the bank. They charge you a service charge for that, and every little thing you do with it. You get interest of 0.001% interest on your balance. In the meantime, the bank takes your paper 'money', along with thousands of other depositers,,, and lends it out at, let's be conservative and say 5% interest. So, the bank is using your money, and making investments with it. Okay, no problem. THEN, they charge you $1.50 to withdraw $20 or $100 bux, when you would never make that amount in interest if you left your paltry sum there for 100 years or more. So what service are receiving for your hard-earned service charges? Not a helluva lot.

  Mortgages? They goudge you.

  Small businesses? Pay exorbitant amounts for every check they write.

  Poor? The service fees will drown you.

  It's a rip-off, sanctioned,,, no! Promoted by the government.

  tal
• 

  talesin

  I went into the TD Bank to cash my GST (government tax rebate) check last January. The teller said "that will be a 5 dollar charge". I did a double take and said,,, "excuse me? It's illegal to charge a customer to cash a government check".

  Called the supervisor. Oh, the effusive apologies!!! BUT,, and I say BUT!!!

  How many uneducated poor people came in before me,,, and PAID THAT $5??? Just do a little multiplication/imaginative accounting in your head.

  How can a teller NOT know the law re this matter?

  I call BULLSHIT!! In whatever way they can, the banks screw us,,, just like all other corporations. The corporation as sociopath ... yah,,, I get it!

  tal