Re: Chase's overdraft fee scam
I find it odd that the masses are miffed at banks for something that has been status quo for years yet no one rails against the "payday loan check into blah blah" local loan shark establishments that are littering our fair towns and burbs.
I think Congress is going to take aim at those places next. No arguments from me that people should take responsibility for their affairs, not spend more than they have, nor expect others to cover for them. However, it just irks me when some take advantage of other people's irresponsiblity. I actually had the opportunity recently to loan an acquaintance several hundred dollars, and in return he would have paid me $100 interest for a week. He said it would have been a better deal than those payday loan places, and it probably was. Assuming I could have trusted him, I could have made an easy $100. He even offered to leave an expensive watch as collateral in case he defaulted. That's how desperate he was. I refused him flat out. I told him a better plan was to just somehow make do without those few hundred dollars for the next week. Doing that, he would save on whatever fees he would have paid me or the local loan sharks, um, payday loan people. Come payday, he would have extra cash in his pocket which he wouldn't have otherwise had, so he could take that cash, and put it aside for a rainy day. I even offered to hold the cash for him if he felt he lacked the discipline to keep from spending it. Guess what? The guy told me I was a jerk for not "helping" him, and went off to the payday loan place ( or so he said ).
From what I know, it wasn't like he needed this money for expenses ( he lives with his parents ). Rather, it would have been for the usual going out with friends, drinking, cruising around aimlessly, buying yet more crap he doesn't need. And for this he was enthusiastically willing to drop $100.
Seeing the spending habits of him and others I've known ( one of my mom's cousins works at Home Depot but shops only at Lord & Taylor ), I really can't feel sorry for these people. I'm only glad that there will be fewer opportunities for others to profit off of their lack of discipline. And maybe if these people can no longer spend more than they make, the message will finally get through.
On another note, I
will enthusiastically loan money to my siblings or my mom
interest-free for legitimate emergency expenses if they're short. I do this knowing that indirectly I'm screwing the banks out of the usurious interest they would charge if these expenses were put on CC, and paid off a little at a time.