JPMorgan Chase warns 86 million customers they might have to start paying for their bank accounts
JPMorgan Chase warns 86 million customers they might have to start paying for their bank accounts
Bank prepares to pass costs on to customers.
The potential charges, says Marianne Lake, CEO of consumer and community banking at JPMorgan, are a result of new regulatory rules that cap overdraft and late fees. Lake says Chase will be passing along those increased expenses to customers, which would put an end to now-free services such as checking accounts and wealth management tools. And she says she expects other banks will follow suit.
They have 86 million people just giving them piles of money. They use that money to lend and invest and then reap all the profits. They incentivize those people to take loans from them and get credit cards through them, because when you already have millions of people entrusting you with their life savings, it's easy to upsell them.
And now, just because they have caps on their bullshit fees, they want to charge people for the privilege of handing over all that free money? Fucking genius right there. No way that will backfire.
Banks are awful, find a credit union, never deal with this kind of bullshit again (probably).
Does it cost money to use an ATM with a credit union?
In the states most all of your credit unions are part of a co-op network and will allow you to “withdraw for free” from any other atm at a credit union. However most credit unions will also cover the atm fee you pay at other ATMs. Check with them as you apply. If you’re in California and have a way to join it, I’d recommend Schools Credit Union.
Not for me, either. BECU in Washington state. In fact, they reimburse my fees from out-of-network ATMs, so more flexible than a bank -- I can use the crummy ATMs in the corner in the 7-11.
No. Not for me in Canada. And I can use ATMs of any of the other credit unions for free too.
They’re being petulant and looking to punish their customers. They’re hoping the next time the “Gub” tries to regulate them people will remember rates went up after and push back on government regulation.
They make money hand over fist. How DARE someone “take something from them” when they’re owed everything!
Line must go up, and rate at which line go up must go up!
Open an account at a credit union, my credit union pays me for having an account every month
Don't all accounts do that via interest?
Poor people don't have enough money to accrue interest. My credit Union has 2 types of checking account I believe, cash and cash back, one of them basically pays you $20 per month for having an account with them and the other pays dividends based on interest earned. The other great thing is that they have very low minimum amounts for savings accounts, it's like $5. Which makes it easier to start saving money. Plus all ATM fees are refunded at the end of the month
My bank gives me 0.02% on my savings account with them. My credit union gives me 3.94% on my checking account. I keep the minimum in the bank so I can use their other services, my CU only has ATMs near me.
Most checking accounts don't pay interest and I believe BofA's savings accounts barely pay at 0.05% APR.
Why should anyone pay to use a bank? That just doesn't make sense to me
Right?? The bank already makes money off the money people put into the bank. Now the bank is saying that their unethical practice of stealing people's money isn't as profitable as they want so they are going to unethically steal from everyone a different way that they can't stop or say no to?
JPMorgan Chase: financial rapists
I have a credit union and unfortunately a Chase account now. I had to open a banking account with First Republic to refinance my student loans from 6.7% to 2.75%. They were the only ones that took on high student loans (lot of medical professionals) and required a constant $20k in the bank.
Once my loans are done in a few months though, I am moving everything back to m y credit union and closing Chase.
To speak to some others like my in laws, husband, and my own parents, likely plus a few friends:
- They believe that banks offer more services and even more security than a local credit union (ironically my FIL is board member of a credit union but banks with a bank)
- Like that there tends to be brick and mortar locations nationwide
- Dont know any better (this is most people I believe, unfortunately financial literacy in US is low. Lemmy is not representative of general pop)
What are you going to do about it pleb? The number of banking companies in the US has fallen over 25% since 2007 via so-called stress tests. The population is quite literally tens of millions of people more in that same timespan.
Bigger market + less competition = you matter less
Don't like it? Make sure that the next time you hear "too big to fail" you tell your elected officials you are willing to take that risk. Everyone cut so much slack for past 4 presidents bailing out banks of course they have learned they can do what they want.
This. Banks, airlines, and I'm sure others, getting bailouts. Capitalism means risks, right? I'm tired of seeing companies getting handouts because they made poor choices, while we still don't have free or even discounted, healthcare. Socialism is in play, but it's being used for the rich.
Yea it’s totally insane. You’re letting them lend out your money, paying is crazy
The potential charges, says Marianne Lake, CEO of consumer and community banking at JPMorgan, are a result of new regulatory rules that cap overdraft and late fees. Lake says Chase will be passing along those increased expenses to customers, which would put an end to now-free services such as checking accounts and wealth management tools.
Of course, whether those rules will go into effect could depend on the results of the November election. Donald Trump could strike them down or dilute them
This sure seems like political action designed to put pressure on the electorate.
Yeah, put this way, this sounds like greedy shit bags saying vote this way or else.
What the fuck man
Simply close your accounts and go elsewhere. When enough people do it, it's called a bank run. Do it.
https://ycharts.com/companies/JPM/stock_buyback
2.823 billion spent on buybacks this year alone. For their 86 million account holders that is a bit over 32.5 dollars each.
Seems like they have plenty of money.
2 years from now: JP Morgan Chase announces $0-fee checking accounts to attract new clients. So predictable.
I suspect her own family hates her, as she has that sociopath smirk that only comes from her bitter desire to make everyone miserable. All for a small slight she received in grade school.
Looks like she might be replacing that other sociopath - Jamie Dimonhands.
Sociopaths all the way down.
Join a credit union. I pay nothing for my account and my overdraft fee is "keep some money in your savings account."
Daily reminder to check out some local credit unions. They offer the same services as banks and are run as a not-for-profit charity. Most US credit unions are members of the Co-Op ATM network which allows you to use any other credit union's ATMs for no fee as if they were your own. Some also reimburse out-of-network ATM fees and even pay interest on checking/current accounts. Their fees are usually the same or lower than banks.
Second the suggestion of credit unions, but to be clear they’re neither charities nor non-profits; they’re member co-ops, run for the benefit of members (instead of stockholders), in which each member gets one vote (instead of each share of stock having one vote).
Pro tip: open a checking account with a brokerage, like Charles Schwab or Fidelity. Everything is free with ridiculously generous terms: no fees, free check books, ATM fee refunds, excellent foreign exchange rates on your debit card. They’ll blow any credit union out of the water.
The reason is that these companies make their money on stock accounts (via trading commissions and the like), and view these checking accounts as just a value-add / loss-leader to get you to park your investments with them. And they’re rolling in dough from options trading and shit like that, so the terms on the loss-leaders are really good.
I’ve had a checking account with Schwab for like 20 years, and they’ve never so much as whispered changing this dynamic.
We've got to bring back the United States Postal Savings System
We still have that in India. When I was younger I used to be confused about my parents depositing money in a post office.
New capital rules would also require them to hod more reserves against mortgages and credit card loans
Does anyone proofread these anymore?
Anyway, go ahead. Watch how quickly people move to banks which don't charge or better yet, credit unions.
ChatGPT approved the article it itself generated, so we’re all clear!
*hodl
I won’t shill any credit union, but do not have your paycheck deposited into a commercial bank account. Have it deposited into a reputable credit union.
Why is that? Genuinely curious as someone who has a commercial bank account.
Member owned and not required to turn a profit and grow revenues like a publicly offered corporate bank.
The world would be a better place without JPMorgan/Chase. What a garbage business.
All the big shitty banks are going to do this. Credit unions are the way.
Since when did they have free checking? Are we talking about people grandfathered in who opened accounts ages ago? Every time I've checked they had terrible options.
Look into online banks like Ally or credit unions. I'm 99%sure that Ally has no minimum requirement and about a 4% interest rate for money in your savings account.
Oh I've got accounts with like half a dozen banks. Chase is not one of them. They are not offering me anything better than what I can get at multiple other banks. I've got a credit union as well. I never understood why most people feel like they're suppose to have One bank. Spread that shit around!
Credit unions for the win.
For real. I have to keep at least $50 in my accounts to keep it free. But I don't pay anything for them to make money off mine.
Ah yes, we will use your deposited money to grow our wealth and give out credit, but that will cost you because we have to afford servers, IT admins AND a yacht for every shareholder. /s
Those stocks won't buy back themselves!
Two words: Credit Unions...
Oh, I’m sure it’s not because JPM placed super toxic bets against “mEmE sTocKs” lol.
Get fucked JPM.
"It's a bold strategy Cotton."
Banks and insurance. Name a more iconic duo.
Death and taxes
Landlords and police
lol they just absorbed a first republic which didn’t charge fees.
Nice work capitalism.
... This is already common in Europe. I pay like 3 euros a month for my account
Why? I changed my bank like decades ago and have a free account ever since. IIRC a 'real' credit card would cost a fee, and unlimited cash withdrawal too, but I think that's it. I don't use either.
Same as Canada. I pay $15 per month (minus $12 rebate for age) for my account, but that gives me free e-transfers, debit card usage, etc.
Free debit card usage? As opposed to paying to spend your money in your account? That's crazy.
$15 a month for a bank account is less than 1 hour's work at Canada's minimum wage. That's more than two hours' worth of work at US minimum wage.
Not ridiculously expensive all things considered, but still worth noting how much a poor person would have to work just to maintain a bank account at that rate in the U.S.
Oh yeah same here. Virtually unlimited service and I can request new cards if needed.
That may be the most square jaw I have ever seen
If this Ruling didn't happen we NEVER would be Paying for our Accounts! That's why we literally don't Pay for Accounts right now (but you will be Charged if you drop below $500!)!
Lol