Bank Transfer Day: Time To Put Your Money Where Your Mouth Is
MONEY MATTERS

Bank Transfer Day: Time To Put Your Money Where Your Mouth Is
TODAY, Bank Transfer Day, exemplifies the wildfire reform that social media enables.
As of this writing, somebody's posting to Facebook every 30 seconds that they ditched their bank in favor of a credit union.
Fed up with how her bank treated her -- and how banks gouge customers of modest means with fees -- Kristen Christian created a simple facebook page urging friends to move their money from banks to credit unions by Nov. 5th.
“If we shift our funds from the for-profit banking institutions in favor of not-for-profit credit unions before this date,'' Christian wrote, "we will send a clear message that conscious consumers won’t support companies with unethical business practices.”
Her clarion call struck a nerve: nearly 80,000 people have pledged so far to dump their banks.
Cara Camilli's comment on the FB page sums up the common sentiment:
I transferred several months ago because of the monthly service charge. I felt that Chase was taking money from the poor and letting the rich keep their money. So screw them, and I hope that everyone pulls out!The campaign has caught on and credit unions reported a $4.5 billion surge in assets in October alone, ABC News reported And the Credit Union National Association, a D.C.-based advocacy group, reports that 650,000 new credit union customers have signed up in the last month.
In part, Christian started her campaign because of Bank of America's announced it would charge debit card users $5 per month; the bank has since backed off that plan.
Wouldn't it be amazing if one angry young woman with a small stone and slingshot accomplished what politicians and economists have failed to do: knock the banking giants off their feet? If you feel the same way as Christian does, perhaps it's time to put your money where your mouth is.
Nancy Zimmerman is a money coach at YourMoneyByDesign. Having emerged from a disastrous relationship with money herself several years ago, she helps folks regain control of their day-to-day finances. She writes weekly at CrabbyGolightly on money matters.
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Comments
Whatever we may think about it, when it's all said and done, the banks will have found ways to make up for lost interchange revenues, which are at the bottom of the current debit card fee turmoil. The only relevant question seems to me to be how they will do it.
Right now it looks like the top contenders to make inroads into debit territory are prepaid and credit cards. We are already seeing how they may be used to lure consumers away from debit cards.
American Express, for example, recently launched a prepaid card that is practically fee-free, which is unheard of for a product that usually comes loaded with fees for activation, purchases, balance inquiries and monthly maintenance, among others.
Credit cards, on the other hand, are now being marketed more aggressively than at any time since before the financial crisis began and issuers will no doubt try to make them a more attractive payment option than debit. http://blog.unibulmerchantservices.com/banks-push-prepaid-credit-cards-to-make-up-for-lost-debit-revenue
Posted by: J.G. | November 6, 2011 11:04 AM
Oh, they're hurting. GOOD.
Posted by: raincoaster | November 5, 2011 12:30 PM