And in other news…..

And in other news, what was predicted has come to pass.

Bank of America, now hindered by limits on late fees and overdraft fees etc, are making up for this loss by charging higher annual fees.

Imagine that. It’s almost as if the banks should be giving credit out of the goodness of their hearts. I am curious what would happen to people’s mutual funds etc that have stock in banks if suddenly they were run as not for profit.

David Lazarus is apparently a typical leftie who believes that if only you could put enough laws on the books we would all be living at Candy Mountain. Apparently David Lazarus did not see the end of Candy Mountain.

Let me just throw some random quotes out here. You can say I’ve taken them out of context and then go read the whole thing. You’ll say I’ve got the context just right. The bold is mine so you notice the meat.

Bank of America’s $59 annual charge for about 5% of its cardholders that begins April 11 appears to violate the spirit of financial reforms

…..

What makes Bank of America’s new fee all the more galling is that it appears to violate the spirit, if not the letter, of financial reforms signed into law by President Obama in 2009.

……

The Credit Card Accountability, Responsibility and Disclosure Act, known as the CARD Act, prohibits a rate increase on existing balances unless a cardholder is 60 days delinquent in making at least a minimum payment.

Introduction of an annual fee thus skirts the law by allowing a bank to milk extra revenue from an account without raising rates.

His solution to all this unfairness?
Banks should instead, close accounts and work out payment plans.

But listen to his real world example of a person in dire straights due to these credit card fees.

Laman, 52, of Lomita is typical of millions of consumers who have had no choice but to run up staggering card balances as the economy has worked its way through an ugly recession.

David Lazarus would have poor Ms Laman live without a credit card in spite of her clear need for it because she owes $30,000 and shouldn’t have to pay a higher annual fee than during previous good times.

I don’t think I’ve said this online before because I hate to throw everyone into the same pile, but these fees were easily predicable by me, an admin person with very little economic sense, yet were passed by the experts (or rather with the counsel of experts) in the big D congress. These people are idiots.

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