Everyone seems a little upset over all these new bank fees that have come out in the last year and a half. Especially the last few days as Bank of America announced a $5 a month fee on debit cards used to make purchases. While not the first, they are the biggest bank to take such a step.
H.R. 4173 the so called Consumer Protection Act was enacted with the help of Utah Rep. Jim Matheson who voted for the bill. Since then responsible consumers have slowly seen perks like free checking disappear. This is a result of a reduction in fees banks are now allowed to charge irresponsible consumers. Now, as the recent law demands, a large reduction in transaction swipe fee is going into effect. Resulting once again in Washington mistakes, being paid for by the average citizen
This announcement by Bank of America comes as no surprise to those of use with common sense. By the federal government limiting the swipe fee that banks can charge a business. The difference would once again be made up by the consumer. Just like responsible consumers had to pick up the slack previously as overdraft fees were limited by the same bill. Now all consumers who use debit cards for purchases must make up the difference in swipe fees.
While you are thanking Jim for costing you more money unnecessarily. You may want to thank him for expanding an already bloated federal government with the creation of a Consumer Protection Agency that is not even well defined by the bill itself.
While there may be a few good things in the bill such as exempting smaller companies from Sarbanes-Oxley. They are over-shadowed by rules like the swipe fee, which cause more pain for consumers in an already stagnant economy. This is another example of why Congress needs to start passing smaller, more concise, single point bills which can gain bi-partisan support. Instead of bundling a bunch of stuff together that none of them really understand by the time a vote takes place. Doing this would also remove amendments and pork that could generally could be considered bribery.
Want to thank Jim? You can find his contact information here.
This post was submitted by American_Innovation.