One of the most corrupt institutions we have in the United States today is banking. While everyone wants to blame the housing market for the last recession it was actually banking greed that caused the economic problems. With very limited regulation and oversight banks do virtually whatever they want. Do you recall when they wanted ATMs? They said that this would be cheaper for the consumer, but was a bold lie as are they very quickly started to fees for ATM transactions both when the transaction takes place and when the funds are delivered. Nobody has ever called the banking industry on this one. Because of government guarantees banks start lending without paying any attention to the economic reality of the country or the lender therefore causing the aforementioned economic crisis. In a rather misguided approach our government used our tax money to bail out the banks explaining that when money exist the banks will lead them to the consumers therefore allowing the economy to recover. However that is not what the banks did at all, they kept the taxpayers money (often handing ridiculously high bonuses to their CEOs) and made lending extremely tight. Once again profiting at the expense of the consumer. The FICO score is a farcen – it is unnecessarily unclear exactly how it is calculated and he takes a simple investigation to discover that: check your FICO score from each of the three reporting agencies and you will find out that it is not the same. If this was a scientific experiment these results would not be acceptable, they should not be acceptable by the consumer in this instance either. Furthermore banks have the ability to run your credit score even without your approval and therefore start charging higher interest rates or reduce your credit limit and will this unethical practice presents a very real danger to the recovering economy right now. As consumers start paying down their debt and feeling a little better banks routinely change the rules by running credit scores and then changing interest rates to their advantage and profit or lowering credit balances often resulting to a balance higher than your credit balance, which of course results to the bannk assessing a fee (a brilliant but unethical process) in today’s electronic environment many banks still take several days to process a deposit and even if they process it they first subtract payments from your account often resulting in insufficient funds and of course the fees associated with them. The banking industry is extremely self-serving and I believe (I cannot believe I am about to type this) need strict regulations I also think they should pay back the taxpayer money that they received during the bailout since the taxpayer never received the promised benefits.
Banks continue to be predatory institutions without any regard to the consumer that makes them successful. I’ve removed all my money from banks and support credit unions because they tend to be much better when it comes to the treatment of consumers. I also believe that nobody should be able to run your credit history without your explicit permission, we need to push for legislation to ensure this basic, logical, and decent consumer protection.