DetNews: Fed-up bank patrons flee to credit unions

[Bozita]

Last Updated: October 31. 2011 12:37PM
Fed-up bank patrons flee to credit unions
Brian J. O'Connor/ Detroit News Finance Editor


You've heard of a run on the bank? Now there's a run fromthe banks, as angry depositors across Metro Detroit move their money out of big national financial institutions and into the area's nonprofit credit unions.

The bank swap is fueled by anger over new bank fees, notably the announcement by giant Bank of America that in January it would start charging $5 per month to most account holders using its debit cards. But fleeing bank customers also say they're fed up with the financial institutions that created the mortgage crisis and recession and which, since being bailed out by taxpayers, have jacked up credit card rates, cut credit limits, stymied home refinancing, slashed returns on deposits and inflated or invented customer fees and penalties.

James Dietz, for one, has had enough. Three weeks ago, the 45-year-old prototype parts developer from Farmington Hills closed his account with TCF Bank and moved his money to the Co-op Services Credit Union in Livonia.

"I wasn't happy," said Dietz. "Not just with TCF but with all banks in general, for the fees they're starting to charge, just for itty bitty things. It's like they're telling me they don't want to do business with me, that I'm not worth their time."

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From The Detroit News: http://detnews.com/article/20111031/BIZ/110310359/Fed-up-bank-patrons-flee-to-credit-unions#ixzz1cPdycvvU

[Warpy]

1. The main benefit is that credit unions aren't joined at the hip with speculators

The destruction of Glass-Steagall did nothing but make the big banks very, very shaky, BoA taking the lead as they try to launder Merrill Lynch's bad investments through the real bank, hoping taxpayers will pay for it.

Taxpayer, in the meantime, hope BoA is nationalized and they'll be off the hook and those idiot executives will be on the unemployment line, their platinum parachutes turning out to be made of aluminum foil--bargain aluminum foil.

Of course, if something as big as BoA goes, it'll take everything else with it, so we'd better hope like hell they don't go completely.

[nineteen50]

2. Debt created by fraudulent banking practice should be

dismissed.

[Samantha]

3. Ahhhhh, but we are being told that would create a "moral hazard"

Specifically, this is the reason why mortgages initiated by nefarious methods which now rest at incredibly over-market values cannot be forgiven for that part above today's market value. That would create a "moral hazard" which would encourage others to, for instance, just stop paying their mortgage, claiming hardship, etc., in hopes of getting the same relief.

My question: how does debt forgiveness of portions of these mortgages created under extremely immoral practices be taken off the table of discussion because the consequence of that debt forgiveness would create a moral hazard? In other words, we must let immoral banking practice consequences stand to thwart moral hazards perpetrated by mortgagees.
Right. :sarcasm:

Sam

[The Velveteen Ocelot]

4. It's not just Detroit - "Credit unions bask in backlash" (Minneapolis)

Consumer fury against big banks is jingling the till at credit unions.

The small not-for-profits, generally viewed as a low-key corner of the financial services business, have been picking up customers who say they're fed up with bank fees and account requirements.

TopLine Federal Credit Union in Maple Grove said it saw a nearly 20 percent increase in new checking accounts in the first three weeks in October. Others say new checking accounts have doubled.

The surge is unprecedented, according to TopLine CEO Harry Carter. He said about a third of the new customers "are volunteering that they're doing it because of the fees charged by larger banks."

http://www.startribune.com/business/132815693.html

[formercia]

5. It was the regulations put on Credit Unions that saved them

The regulations were supposed to stymie the Credit Unions to keep them from competing with 'Real Banks'. The Banksters got their way, and proves the old adage: "Be careful what you wish for."

[theaocp]

6. I've been with TCF for half my life

back when they were Great Lakes Bancorp. My wife got a fuckload of attitude from a local branch about their fees and wanted to get our account back in a check. They told her they would send her a check when our account had $0.00 in it. No shit. Why the fuck would we need a check, then?! When questioned about this, they hung up on us.

I'm done with these leeches. They can suck Bolton. We're heading for a credit union ASAP.

[Snotcicles]

7. Credit Unions are member owned, thats why they call most savings accounts, Share Accounts. nt

[doublethink]

8. .....