Arianna Huffington suggests that we should take our money out of big banks and put it in small ones. The problem, however, is that the small banks are likely to put your money right back into the big ones. We have a local bank where we are very happy — Banco Popular. However, our mortgage with them soon got moved to a big outfit and after that Wells Fargo.
As we all know some of our banks are rushing to increase interest rates and hit us in any number of ways for extra cash. Beware making a late payment. One cannot even be sure a bank will not lose a payment made.
I noticed that a mortgage payment for a house we own had not gone through my account. When I called to check, they had no record of receiving it and it certainly has not been returned by the Post Office. No charges that time except for a payment by phone.
I find as I run through bills error after error. Sallie Mae gives no monthly notice of payments due (our children’s student loan remnants), but charges late fees. It provides a booklet and no envelopes for sending in monthly payments.
And then there are the mysterious increases in rates — interest increases presumably. We have one outfit that ups rates from 3.99% to 29.99% with a late payment. Another demanded full repayment with a death of one of the card holders — offered a deal of a reduced amount.
And then there are those odd phone calls as well as emails that one knows are crooks — but how did they figure which bank was mine. Speaking of privacy there is no guarantee that someone cannot be bought to give out vital information.
Take Your Money Out of the Hands of the Banking Oligarchs
By Arianna Huffington and Rob Johnson, Move Your Money. Posted December 30, 2009.
How? For starters, you could move your money to a small bank
“A war is just if there is no alternative, and the resort to arms is legitimate if they represent your last hope.” (Livy cited by Machiavelli)
Ed Kent [blind copies]