Posted on 07/05/2024 12:44:47 PM PDT by RomanSoldier19
JPMorgan Chase just issued a major warning to its 86 million customers.
The banking giant says a list of new regulations from Washington, D.C. will force the company to begin charging customers for checking accounts, reports the Wall Street Journal.
The bank cites proposed regulations from the Consumer Financial Protection Bureau and the Federal Reserve, which are pushing for new caps on credit and debit card late fees and higher capital reserves, as primary catalysts that would push the bank to eliminate free checking services.
(Excerpt) Read more at dailyhodl.com ...
“The bank says it’s possible that the potential regulatory changes are tweaked in such a way that allows the banking giant to keep its services free.”
Everything you do will cost you $2-10 and if you never touch your account it will cost you $50-100 a month until you use it ,LOL
Chase and many other banks use bank accounts to make money from. In essence, people are letting banks use their money for free to make the bank money. Imagine using other people’s money for free and then using that money to make more money. People lending hundreds of billion dollars to let the banks make billions for themselves.
And then, the banks want to charge their depositors a fee to use their money for free?
Should be the first challenge in light of the overturning of the Chevron deference. But, I suspect the bank is perfectly fine charging fees to customers and will go right along, pointing the finger elsewhere.
Do yourself a favor and move all your money to a Credit Union, where they appreciate your business. I don’t have an account at Chase, and I guess I never will.
Only three of my seven renters have bank accounts. That’s because the five who don’t can’t keep the minimum required amount. Of the 86 million, how many will have to forgo the convenience of having a bank account? How much will the bank lose overall because of this? Any ideas?
This also means that when the five who don’t have accounts get paid, they have to pay a percentage to get their check cashed. Also, there are some employers who simply can’t write a check. It’s either direct deposit into a bank account or you can’t work there. The impact of this will be felt far and wide.
The regulations are in valid as of the last Friday SCOTUS decision
The banking giant says a list of new regulations from Washington, D.C. will force the company to begin charging customers for checking accounts... proposed regulations from the Consumer Financial Protection Bureau and the Federal Reserve... would push the bank to eliminate free checking services.
What, they aren’t making enough money?
I got rid of my last commercial bank account many years ago and don’t miss it or Wells Fargo.
Credit union person here.
No, it just means if the regulations are challenged, the court does not have to defer to the CFPB’s interpretation of the law as to the scope of its authority.
Capital One is a master at that. They payyou “10 times the average” on savings accounts (1% instead of 0.1%) and lend the money to their credit card holders at 18-33%.
Take a look at their balance sheet sometime.
Oh, it’s the “free market”? Yeah, go ahead and start your own bank. Let me know how that goes.
I like my credit union too.
The federal reserve and the consumer protection bureau can’t make rules and regulations... Only Congress can make laws. SCOTUS just ruled on that.
The four majors are in deep do do. Derivatives in the trillions. Expect Bail In’s, as per the Dodd Frank act.
Best you can do is find a Credit Union.
“That’s because the five who don’t can’t keep the minimum required amount. “
Then those ckg accts are not exactly free.
“Then those ckg accts are not exactly free.”
When I was a child, you could open a bank account with five bucks. They were children’s accounts. Then as the MBA graduates made it into the workplace all that changed.
Suddenly everything had to have a return on investment.
I wonder if those new regs were put in after the Chevron decision. Or before?
I started working at a bank in 1997 in a Vice President role in a technology side of the operations. I had no idea that most smaller banks maintained their “accounts” on systems run by back end companies. The banks had to pay for every account. This included daily transactions and monthly closings/statements. I was stunned that the monthly price ranged from $4-$7.50. When I talked to my boss about this, he told me they made enough out of the accounts that had tens of thousands in them to pay for the small balance accounts (which were many.)
We were a bank that provided free checking.
Over the next few years we kept buying the smaller banks that were almost bankrupt. Every three months we would absorb another one. The biggest operational savings? Rolling their account structure into our provider and saving $3-$5 a month, per account. This worked for several years….until we got rolled into a HUGE bank who had their own back end.
But, account management is a huge expense for any bank.
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