Angered citizens switch from large banks to credit unions because of heavy fees and inefficiencies.
Written by HUGO WONG / Published November 18, 2011
The recent Occupy Movement created another movement that is gaining adherence from angry citizen protesting over “corporate greed”: “Move Your Money” and “Bank Transfer Day.”
Ordinary people, upset by the fact that some banks such as Bank of America are charging consumer debit card fees. Many banks like J.P. Morgan Chase and Wells Fargo initially thought about using similar fees has dropped them due to immense unpopularity from consumers. Even though Bank of America dropped their debit card fees on Nov. 7, some consumers are frustrated with their big banks’ inefficiency and decided to withdraw their money and put it inside other banks or credit unions.
Credit Unions are benefiting from this movement. Credit Unions act like banks, but their shareholders are the customers themselves so they benefit from credit union recent surge of new clients. Credit unions nationwide created 650,000 new accounts this past month with news of Bank of America Debit Card fees. This is a shocking number compare to only 600,000 new accounts created last year.
These banks are not really affected by the move because of their number of accounts is vast. However, this movement shows how consumers are taking initiative to stand up for what they believe in and take a course of action that benefits them.
The creator of the “Bank Transfer day,” Kristen Christian, originally created the Facebook page rallying for the movement because of “ridiculous fees and poor customer service.”
“This is not an act of terrorism or treason, it’s a boycott. It’s as simple as that,” said Christian in an online interview. “The goal of Bank Transfer Day was never to disrupt corporate-level banking institutions, but instead to promote growth on the local level.
Residents of Temple City have opinions about the movement as well.
“In my opinion, the government needs to stop bailing the banks out when instead they need to bail out those in our country suffering,” said Senior Dana Tran. “Our tax payer money needs to put forth to a greater cause to help all Americans not the ones with the money. It is depressing how we are helping the rich get richer.”
Current University of California, Irvine student Lynne Cheng feels differently.
“My personal opinion is that it won’t do anything,” said Cheng. “People are naturally selfish and will want the most they can get out of their investments.”
Whatever the stance, Americans in the United States have the choice of either staying with their banks or moving to new ones – in hopes that the economy will not be greatly affected.