Community | November 05, 2011 | 37 comments

Bye bye, banks: 650,000 switched to credit unions last month!

source: http://redgreenandblue.org/2011/11/04/bye-bye-banks-650000-switched-to-credit-unions-last-mo...

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Dagum
November 5 has been designated Bank Transfer Day or Move Your Money day, the day to send the message to the too-big-to-fail Wall Street banks that they have failed us.

But it looks like the tsunami has already begun. The Credit Union National Association (CUNA) says that some 650,000 people have opened credit unions in the past month – more than in all of 2010.

Bank transfer day november 5 Customers were livid after Bank of America announced they would introduce a $5 monthly fee for using their debit cards, as a way of keeping their profits high after a new federal law had tried to limit them. But it looks like they’re feeling the heat – earlier this week they scrapped the fee. Other banks have also backed down from planned fees.

“These results indicate that consumers are clearly making a smarter choice by moving to credit unions where, on average, they will save about $70 a year in fewer or no fees, lower rates on loans and higher return on savings.” said Bill Cheney, president and CEO of CUNA.

But the big story is the way people are taking control of their own financial future, and returning autonomy to local institutions.


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    Community,   News and Politics,   Progressive America
  2. tags:
    to big to fail,  this is freedom
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37 comments // Bye bye, banks: 650,000 switched to credit unions last month!

  • MotherForTruth
  • PeteLeS33
    • 0
      PeteLeS33  

    • 650,000 is a good start. But main street media says that is not even a drop in the bucket, And B of A, Chase, Citi, and Wells wont even flinch. If, however another 100,000 pulls their monies out in one day then they will have something to worry about!

    • 7 months ago
  • CalPal
    • 0
      CalPal  
    • PeteLeS33:

      Wait, I'm confused. If banks won't flinch at 650,000 people leaving their businesses, then how would an extra 100,000 suddenly make them panic? I don't know if it's just me, but something doesn't add up here.

    • 7 months ago
  • Argon18
    • +4
      Argon18  
    • CalPal:

      It's only confusing if you accept the false assumptions of "main street media" that tries to spin that it's "not even a drop in the bucket" in an attempt at PR damage control. It's just like the "sour grapes" idea that they don't even WANT those accounts, that they tried to use an excuse.

      "And the big banks don’t particularly want all those retail-deposit funds — they’re getting precious little interest on them, and they come with all manner of expensive obligations to mail out statements and provide smiling service at teller windows and generally do the whole customer-service thing, which as we all know big banks are very bad at. Historically, they’ve done what they have to do on that front because they’ve been able to extract all manner of overdraft fees and interchange fees and the like, but that fee income is shrinking now, thanks to Dodd-Frank, and the fact is that millions of small bank accounts are actually unprofitable now for the big banks, and those banks won’t shed many tears if those customers go off to a credit union instead."

      The point about the 650,000 is "That's more than they registered last year, and it happened in one month. If all of those people move their money today, it would be massive." so that if 100,000 is in 1 day then the banks are DEFINATELY going to do a lot more than just "flinch" that they already have, "heads will probably roll" somewhere in their organization.

      After losing access to all that captial from "credit unions have added $4.5 billion in new savings accounts, likely from the new members and existing members shifting their funds." in one month, and probably at least half that in one day the banks are going to do a whole lot more than just "shed many tears" since it's not just from individual accounts, it's also from small business and even millions from some of "the 1%"

    • 7 months ago
  • PeteLeS33
  • VoyagerFilms
  • Argon18
    • +5
      Argon18  
    • Image

    • http://www.mercurynews.com/bay-area-news/ci_19258590

      So it's not just individuals and small business that are getting fed up with the major banks, it's some of "the 1%" too. That's REALLY going to put a crimp in their profits.

      "A prominent member of Silicon Valley's exclusive "1 percent" club is pulling his money out of Bank of America and cutting all ties with the bank -- and he hopes others will follow his lead.

      Mike Fox Sr., a beer magnate and well-known philanthropist, is set to announce Friday that he is divesting his long-held personal Bank of America account, which contains several hundred thousand dollars, in an effort to promote social and economic justice.

      Fox said Thursday that he has also asked his executive team to move a $4 million-plus line of credit held by M.E. Fox & Co. from Bank of America to another institution. Fox's firm is a 46-year-old wholesale distributor of beer, water, New Age beverages and Red Bull energy drink.

      "I think the only way I can influence people is through my personal example," said Fox, 75, who called the amount he was divesting "rather small compared to the egregiousness" of Bank of America's slow response in modifying home mortgages.

      Fox's announcement comes a month after another PACT member, the Most Holy Trinity Catholic Church in East San Jose, decided to divest its $3 million Bank of America account. Gina Gates, a PACT leader who belongs to the church, said the group is elated by Fox's move.

      "We have been working on this campaign for two years trying to negotiate with banks -- and particularly Bank of America -- to work with homeowners to keep people who can pay for their homes and give them viable modifications," she said.

      Gates believes Fox's action will spur other customers of big banks to move their money. Fox said he doesn't know where he'll take his banking business, but mentioned local banks as an alternative"

    • 7 months ago
  • ThirdSection
  • DanCastro
    • +1
      DanCastro  

    • Bye Bye! Now how do we get our government money into local and not international "too big to fail" banks? How do we start loaning money to each other at non-usurious rates? If the banks won't change, how do we keep this "banking change" thing going? How do we have an impact on Wall St.?

    • 7 months ago
  • Argon18
    • +5
      Argon18  
    • Image
    • DanCastro:

      By enforcing the laws and holding Wall Street accountable for the outrageous crime of fraud they committed. The reduction of their profits from the lack of funds available will lessen the influence they can buy.

      http://www.washingtonpost.com/business/economy/justice-department-sec-investigat...

      "The corporations, sometimes at the request of the government, hire teams of lawyers and accountants to interview employees, gather electronic records and sift through documents. The government reviews the results and decides whether further legwork is warranted — and, ultimately, whether to pursue charges.

      The private investigators help determine what evidence the government sees. They typically turn over only a small subset of the many documents they collect. Sometimes the lawyers who conduct the investigation are the same ones who represent the company in negotiations with the government over charges and penalties."

      http://www.orrick.com/practices/securities_litigation/sec_investigations.asp

      "Public outcry for increased regulation of America’s business and financial communities after the financial crisis and the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) have caused the SEC to become more aggressive and persistent than it has been in years. The Dodd-Frank Act effectively doubled the SEC's budget over the next five years and the SEC has announced that it intends to hire hundreds of new employees.

      Led by a new, aggressive Enforcement chief, inquiries are now routine and can be instituted even by lower-level staff members, penalties for financial and disclosure fraud as well as insider trading have stiffened, criminal referrals are increasing, favorable settlements are much harder to come by, and the SEC is more willing to try cases."

    • 7 months ago
  • DanCastro
    • 0
      DanCastro  
    • Argon18:

      I would rather let many of them fail when we bleed them of all their income! what if people on boards started directing money only be placed in banks that invest in USA? inter law abt to go bust over grks, so what the hay? Eliz Warren head the comm to develop the new banking & invest to take over assets of bankrupt law brkng agents!

    • 7 months ago
  • ThirdSection
  • Argon18
    • +5
      Argon18  

    • At least the branch managers are desperate, having to go through the same pitches over and over to justify the policies all day. It must take it's toll on them.

      http://www.dailykos.com/story/2011/11/05/1033537/-local-Chase-manager-was-desper...(Updated)

      "I went into my local Chase branch in Portland, OR this morning and closed my account. We used to have a Washington Mutual account, but they were seized and essentially given to JP Morgan Chase back during the financial crisis in Sept 2008. We never switched banks because we were lazy. Well, today I was inspired to get off my ass and vote with my feet (and money) by Bank Transfer Day.

      I wasn't alone, and the bank manager was desperate to keep my account.
      Everyone in the bank was in extra sunny happy mode when I came in. It was like I was Norm on Cheers, even though I'd probably been in that office less than 4 times in 3 years. "HI! Welcome! How are you today?!?"

      Stepping up to the counter, I said "I'm great... I'd like to close my account please."

      "Oh, ok. I'll need to have you talk to the branch manager," the teller said, gesturing to the gentleman at the nearby desk.

      I shook the bank manager's hand, noting that his watch probably cost more than my car, and immediately felt even better about my decision. He looked up my info and then began running through his script for keeping my account open.

      "Is everything OK with your account and service?"

      Well, yes, except for the fact that I'm charged ten dollars a month for the privilege of having a checking account here. (We used to have free checking, but Chase implemented the fee about a year ago if our balance went below $1500. Man, we were lazy and complacent, but not today!)

      "Let me see, yes, it seems you paid a fee... 3 times? So only $30."

      Yes, only $30... but it's the principle. It's the greed that is annoying.

      "Well, you've been with us for many years, here is what I can do. I can temporarily... uh, permanently waive any future fees. We really value our relationship with you and want to keep you as a customer."

      It seems like if Chase had called me before I came down here to close my account and made that offer that it would seem genuine, but not only after I'm already here to close my account. Which I would like to do.

      "Well, we could also refund those fees. We would really like to retain your business."

      I'm going to be opening up an account with a local credit union.

      "We are local, too, really. We all live in this community and take our community involvement very seriously. Plus, the economic forces that have made us institute fees will affect the credit unions, too. If they aren't charging fees now, they will be, believe me."

      Look, I'm sure you have heard of Bank Transfer Day. That's what I'm participating in, that's why I'm here. I am closing this account.

      At this point two more customers come in and get the "HI! GOOD MORNING! How are YOU today?!?!" greeting.

      "We're here to close our accounts," they say. The bank manager looks from them back to me with resignation in his eyes, but reiterates his no future fees offer. I decline, and he writes me a withdrawal slip for all the money in my account.

      I left the bank feeling great... i really hope this scene is playing out all over america today!"

    • 7 months ago
  • lifestudentno83
  • queenofit
  • Argon18
    • +5
      Argon18  
    • Image

    • It's more than just individuals, small business are also moving that will hit the big banks even harder in the profits

      http://www.huffingtonpost.com/2011/11/04/small-businesses-switching-from-big-ban...

      "Tired of bad relationships with big banks, a growing number of small-business owners seem ready to make the switch to small local banks, community banks or credit unions. Lauri Kaye, owner of Create Cafe in Tucson, Ariz., thought it was ridiculous when she got charged a fee by Wells Fargo for depositing more than $2,500 into her business account. But she drew the line at fees affecting her employees. About three weeks ago, an employee told her that Wells Fargo was charging him $5 to cash his paycheck. When she contacted Wells Fargo, "They said there was nothing they could do about it," Kaye says. "It was non-negotiable. It's incredibly manipulative -- those who have no voice are getting pushed around."

      Meinert decided to turn his frustration into action. After 12 years with Bank of America and a year with Chase, he's switching all his business accounts to Seattle Bank. Like many small-business owners, he initially joined the big banks for no particular reason other than that they were conveniently located. Bank of America was the closest bank to his office and Chase was the closest bank to his office that wasn't Bank of America. He spent years enduring all the subsequent irritations -- outdated online banking systems, the revolving door of bank employees, increasing fees, a sense that he was more a number than a name -- with little more than an eye roll. But the credit line denial was a breaking point.

      Marcy Venezia, president of Boston-based Nightingale Group, which provides software for schools, opened a business account at Bank of America specifically because they had a lot of business services, including an investment branch. But she found it tough to get good customer service when the bank employees kept leaving. "The investment person left and then we had another investment person and they left, and when the third person left, we said 'this is enough turnover.' There was a fair amount of turnover in the office as well." Two years ago, Venezia switched her account to Bank of Canton, where she's able to have actual conversations with bank employees who know her. "At Bank of America, I was a grain of sand," Venezia says, "whereas with Bank of Canton, I'm more like a pebble."

    • 7 months ago
  • attilatheblond
    • +3
      attilatheblond  

    • Seeing some comments on various news sites that are suggesting people are foolish to open accounts in Credit Unions. Their reasoning? "Credit Unions don't pay taxes" therefore, they are worse than banks.

      Debunk and tell them that CUs pay local property taxes, and employee related taxes. They don't pay Federal Income taxes because they are Non-Profit! The $$ they make above what it costs to operate goes right back to members in the form of services and more loans.

      Thinking RW talk radio will be instilling some bad info. One more issue where WE can be the media that gets facts out.

      http://www.creditunionsforyou.com/myths.html

    • 7 months ago
  • Dagum
    • 0
      Dagum  
    • attilatheblond:

      The banks have literately hired PR firms to send pro-big banking shills to comment all over the internet. They are scared to death of this move and it has been primary urged on by the blogs and media on the internet.

      You are right that credit unions are non-profits, give loans locally, and pay property tax.

      And due to loop holes in our tax code most of the big banks don't pay taxes anyway.

    • 7 months ago
  • Argon18
    • +4
      Argon18  
    • Dagum:

      It seems that Chase was concerned enough to try to limit it by making an excuse to shut down their web page. So the PR spin probably isn't working

      http://www.dailykos.com/story/2011/11/04/1033329/-Chase-takes-down-on-line-banki...

      "I received the following email alert from Chase this morning:

      Dear Valued Customer:
      We will be making enhancements to chase.com and our mobile platforms that will help us meet our objective of continually improving these services.

      As a result of these enhancements, some services on chase.com and Chase Mobile will be temporarily unavailable at various times from Friday, November 11, 2011 through Sunday, November 13, 2011. All times are Eastern Standard Time.

      With tomorrow being Bank Transfer Day, I'm sure that this is just a coincidence---NOT!

      We took our personal baking to our local credit union years ago. I received this friendly email alert because I maintain a business account at Chase and cannot move it at this time.

      Does it appear that they are in damage control mode?"

    • 7 months ago
  • Lisayou
  • cherry5000
  • budsnews
  • JanforGore
  • JanforGore
    • +2
      JanforGore  

    • Just read on Twitter that banks (BOA specifically) are requiring 10.00 (with certified checks) to close accounts. Anyone else hear of this?

    • 7 months ago
  • queenofit
    • 0
      queenofit  
    • JanforGore:

      I read that somewhere, I don't know if all of them are doing it, but I recall seeing where it can happen. Imagine, you have to "pay them" to get out of their web. shez....even more reason to go.

    • 7 months ago
  • squarethecircle
    • 0
      squarethecircle  

    • Can you see the path to one world bank that has been put under our feet? Don't lose sight of the fact that Occupy is about people and not about banks. We need each other but we don't need banks...not only or even one...step outside of their games and let the deceptions melt away. We can all just get along.

    • 7 months ago
  • Leen61
  • Argon18
    • +6
      Argon18  

    • http://www.youtube.com/watch?v=XQD3At3E7TA

      Breaking up with banks is hard to do but like any harmful relationship, the damage will only heal if it is ended.

      http://www.dailykos.com/story/2011/11/04/1033339/-I-moved-my-money-and-I-feel-fi...

      "I'd known for a long time I needed to say goodbye to the most abusive, dysfunctional relationship I had, but it was hard. Me and the Bank of America had been together since I was in high school, when they were my friendly neighborhood bank, founded right in my hometown of San Francisco by A. P. Giannini, a guy whose name adorned many San Francisco buildings and institutions when I was growing up.

      But those days were long gone, replaced by an ever-expanding corporate behemoth that got drunk every night after work and came home and wrecked the house. Why, oh, why, didn't I leave sooner?

      I'll tell you why: It was the damn way I'd let the bank ooze into every corner of my life. All those auto-payments and all those names and billing addresses entered into that computer. The credit card I had closed and was paying off, still thousands of dollars from that day. It seemed so hard.

      And then one day around seven months ago, I'd had enough. I went down to my credit union, where I'd had an almost-unused account for two years, and set up the bill payment center and deposited my paycheck. I tried to transfer the credit card, but they thought the balance was too high, so I had to suffer through that.

      Today, to celebrate "Move Your Money Day, AKA "Bank Transfer Day," on Nov. 5, I tried one last time. And this time, my CU approved the balance transfer, dropping my interest rate, by the way, from 19.4 to 2.9 percent. I already was paying the "pay this balance off in three years" amount, and I'll keep doing it, but now I'll have it paid off in half the time.

      So tomorrow I'll walk into the B of A "banking center" -- they've killed off the word "branch"; I guess it was too warm and reminiscent of "It's a Wonderful Life," every bank's least favorite film -- and close it all. The checking account, the money market account, and the pay off the already-closed credit card.

      Move your money. It's a great feeling!"

    • 7 months ago
  • GRC54
    • 0
      GRC54  

    • Why when a bank has billions of dollars, makes billions on interest it rapes from customers and are unwilling to give out any loans to move this country forward, Want to make billions more charging it's customers who can't afford them fees. They are nickle and diming us to death so we all live in poverty. Well take your money out of the too big to fail banks and put it in local banks and credit unions. You will be treated like a human being instead of a commodity.
      If enough people do it then watch the attitude of the too big to fail banks change while they watch their biggest revenue source dwindle.

    • 7 months ago
  • letsliveinpeace
  • letsliveinpeace
    • +2
      letsliveinpeace  
    • Image

    • http://current.com/community/93527090_how-to-divest-from-a-big-bank.htm
      How To Divest from a Big Bank
      Setup an account at another financial institution (the short list)

      ■Find another financial institution that has your values. You may wish to check out a community bank or a credit union in your area.
      ■Once you have found a new financial institution, open up your accounts (like the ones you will be closing at Bank of America, JP Morgan Chase or Wells Fargo).
      ■Order checks.
      ■Order your ATM/Debit Card. Note: Some institutions will give you a debit card upon opening your account.
      ■Set up automated payments (mortgage, cell phones, garbage, etc.…).
      ■Set up automatic deposits (as needed)
      ■Set up online banking (as needed)
      ■If you have automated banking, you may wish to log on at your earliest convenience to set up your bill payments that way. Log on to your Bank of America, JP Morgan Chase or Wells Fargo online banking account to get all your information about who you pay online. Setup your online banking payments.
      A more detailed guide to closing your account

    • 7 months ago
  • figure8
  • Swisher
  • Argon18
    • +6
      Argon18  

    • It's going to take a HUGE toll on banks profits and SEVERLY compromise their ability to continue the outrageous practice to make risky investments with other people's money.

      http://www.dailykos.com/story/2011/11/04/1033303/-The-bank-said-Youll-be-back

      "At Wells Fargo, my sister walked up to the teller and politely asked to close her account. The teller said, "No problem." She pulled up her account and saw the balance and told her that due to the amount she had to speak with the branch manager. The branch manager came out. He was probably 30 years old and was very arrogant. He asked my sister why she wanted to close her account and my sister told him she thought Wells Fargo was part of the problem with the economy. He went thru some talking points about why she shouldn't move her money, but my sister didn't back down.

      Next we went to Bank of America My sister on the other hand had a large balance in multiple accounts. They actually refused to cut her a check for the full amounts. They only gave her 1/3 of her money and told her she'd have to come back to withdraw the rest. They claimed they were only allowed to make checks for a certain amount, and that they had no authority to cut additional checks on the same day. Stupid BofA. She had her check in hand and politely told off the branch manager when he told her she had to come back another day or two to withdraw the rest.

      At BofA, we weren't the only ones closing accounts. There was a line of people. Most had small accounts because they weren't even being challenged, but she actually had to wait in line to speak with a branch manager.

      At SunTrust, the branch manager went off his rocker. He just kept asking her "is there anything I can do or anything I can say to change your mind?" He asked probably twenty times. He even offered to have the market executive meet with her and hear out her concerns. She told him she wasn't interested. He really looked nervous about it. "

    • 7 months ago
  • Incredulous
    • +3
      Incredulous  

    • "But the big story is the way people are taking control of their own financial future, and returning autonomy to local institutions."

      Amen to that....and hopefully we will continue to see that 'taking control' beyond the financial arena....

    • 7 months ago
  • Dagum
  • bailey78
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