Update to American Banks

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I had previously written about my bank imposing new fees to account holders. You can read my post here American Banks.

I was right. The bank is charging a "poverty fee" on account holders. Here is their explanation:

"There is an important change coming to your Essential Checking account. What's changing? Effective May 4, 2012, a $7 monthly service fee will apply, which can be waived with the following:

• Maintain a $1,500 minimum daily balance, or

• Maintain qualifying direct deposits totaling $500 or more each statement cycle*

If you do not meet one of the criteria above, the monthly service fee will appear on your account statement on or after June 4, 2012.  If you are assessed the monthly service fee, you can receive a discount of $2 per month when you set up and receive online only statements for this account. Please review the criteria above as it may be necessary for you to take action by May 4, 2012, to waive the fee.
*A qualifying direct deposit is a direct deposit of your salary, pension, Social Security or other regular monthly income, electronically deposited to your Essential Checking account by your employer or an outside agency. Transfers from one account to another, or deposits made at a banking location or ATM, do not qualify as a direct deposit."

I barely skimmed by with qualifying direct deposits, so I won't get charged a fee. But I imagine countless other people will be charged. Who can keep a daily minimum balance of $1,500 in today's world? If you are working a minimum wage job and had all your paychecks direct deposited, you would barely skim by to get out of paying their fee. Of course that depends on how much is being taken out of your paycheck for taxes, social security, insurance, etc. Oh, and whether or not you are being garnished because that would make you fall under the bank's minimum amount.

Don't you just love how banks in America can get away with charging "poverty fees" just by calling them another name? How many poor people do you think are able to keep a daily minimum balance of $1,500? None. Many poor people are being garnished for one thing or another so even if they have their paychecks direct deposited, they could possibly fall under and have to end up paying another fee. To some people $7 might not seem like much, but if you are living in poverty and live from paycheck to paycheck, $7 can be a lot. It can pay for almost two gallons of gas. It could cover the cost of some medications at pharmacies with the generic drug programs. You could feed a family of ten for one meal.

Wealthy people NEVER have to pay these extra fees. Extra fees are always directed at the poor, while the wealthy get tax breaks. Who says there isn't a class system in America?