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SmartCredit.com Consumer Education President John Ulzheimer on the growing number of fees banks are charging for checking accounts.
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And airlines are not the only ones weighing on your bottom line and the focus tonight for the show banks are ratcheting up fees on their most basic services penalize -- customers just for Brent and in.
Their business with more John Alzheimer consumer education president for Smart credit.
Dot com our -- it huge pays huge piece in the Wall Street Journal -- you're talking about the fact that basically there is no such thing as a free checking account.
Anymore do we -- just get used to this new reality or do you think it's gonna go back in the -- of the consumer at some point.
It's a sure what's interesting this stuff seems to add -- -- from -- watch your a lot of banks were implementing fees on debit cards.
And then the consumers were outraged as they are -- and all of a sudden the banks acquiesced and stop charging fees for debit cards and really it was just a matter -- time.
When that he died down -- -- before it started to implement something needed to help cover the bottom line if you well and it's time it's the elimination.
The free checking account now keep in mind.
Checking accounts are not terribly portable we get used to having an account with a certain bank.
And we have checks we have a debit card we -- automatic draught we have automatic deposit.
It's not very easy to -- basis from one bank to another which is why they're choosing to need to implement -- on those types of accounts because they realize.
But they can still charge five box 799 a -- and most consumers are gonna say you know -- I'll let what that I'm not gonna take my business.
I don't know if they wanna do but -- but -- that's a thing that's exactly what they're doing if you look at at those surveyed you know 82% of those high net worth customers the banks -- -- somebody does make a 75 grander more and then -- -- -- high network.
And that person says that -- bet that they'll bolt from the bank.
But they don't you'll answer up to try since Daniel leap we won't leave because the convenience of the banks know that -- -- have us.
That's that's exactly right what -- -- everybody likes to play Internet top guy on those types of surveys but when it comes down -- actually doing something a lot of people realize what.
He now it did what I pay per year per checking account in seasons last night pay on a bar tab and one night out so they realize they -- kitchen with 75 dollars or more data being.
Well my guess it's not automatic -- -- -- -- look like Gannett and an abusive -- 75 bucks a -- what -- are -- because you're motivated because it's a significant amount of money.
If they just nickel and dime me here in there -- that this is not arbitrary BC's they realize that we have a breaking point and they don't wanna get to the breaking point.
To forces to leave but look.
-- it that you reconsider the -- all they along with and it's usually the big banks were implementing BC's they're over 101000 credit unions in this country most of -- still have.
Three checking it does actually.
That's never believe we can -- be willing -- -- -- that's not -- try it for me I mean I'm -- -- of -- a Chase Bank on every other corner I didn't know what I saw it as like performing yeah.
Which they've held it.
And there's that.
They have massive ATM networks that do not exist in the world of credit -- some credit means you have partnerships and record -- -- -- ATM networks but you're right by and large we are willing to pay for the -- -- having to Chase Bank.
Bank in every corner from some of us -- -- some of us you know are in the -- we've grown up in the Internet era we are willing to take our business online.
And did business with banks seemed to have zero branches in the city -- -- and willing to deal -- -- -- of ATM machines or not using ATM machines at all.
Just so we can get the free checking it's really matter who wears your balance what do you want you want convenience in location or do you want -- and -- which you have to decide as a consumer to.
Before -- got really quick -- who do you blame -- do we all blame is that the regulators and he blamed the banks themselves.
God you know we want healthy.
Thanks right and we don't want banks that are struggling we invest in these banks that are mutual funds -- -- 401 -- We have we have friends and -- that market banks we need healthy banks and at the end of the day if you're gonna regulate these guys to death.
They're gonna have to subsidize the cost of compliance so where does that come from a comes from the and you and that makes sense that has made.
It plausible argument -- all right pants like this you know eat broccoli just close your eyes and just perfect.
I just.
Do you one -- I think thank you very much John.
