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TCF Financial Corporation Message Board

  • millbel millbel Oct 16, 2011 5:51 PM Flag

    Free Checking - Excerpt from "The Big Short"

    Saw this in the Michael Lewis book "The Big Short" and immediately thought of TCF:

    "The guest speaker was Herb Sandler, CEO of a giant savings and loan called Golden West Financial Corporation. "Someone asked him if he believed in the free checking model," recalls Eisman. "And he said, 'Turn off your tape records.' Everyone turned off their tape recorders. And he explained that they avoided free checking because it was really a tax on poor people - in the form of fines for overdrawing their checking accounts. And that banks that used it were just banking on being able to rip off poor people even more than they could if they charged them for their checks.""

    Some times late at night I think of the days when unscrupulous bankers were tarred and feathered for their misdeeds. Oh, for the good old days.

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    • There are no fines if you do not "overdraw" on your checking account. Why blame the bank because some people are stupid?

      • 1 Reply to bodybag2006
      • There are likely two types of customers who overdraw their bank accounts. One types is careless, not tracking their account closely enough to realize that they will overdraw, causing a $35 overdraft fee per item.

        The second type of customer is one who is out of money and desperate. Perhaps this customer has not managed their money well during the month and suddenly it is the 25th and there's nothing left to eat in the house. In the old days, this person might obtain credit at the local corner store, get a payday loan or even go to a loan shark.

        In modern times, clever bankers saw that lending to desperate customers with high overdraft fees could be a profitable business. After all, overdraft fees have been unregulated and so the bankers could not be accused of loan sharking, even if they were.

        Banks such as TCF have become predators, especially on the weaker and less fortunate members of our American society. Even if bankers cannot be tarred and feathered for their abuses, they can be ostracized. I am thinking that a term appropriate for loan-sharking bankers might be "Predator on Society", or simply POS for short.

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