wmarat,
On your accounts the savings accounts pay you interest so I will assume you are talking about checking accounts. First I am not necessarily saying banks are always right or wrong BUT they are a business and just like every other business they are there to make money. Thats the bottom line. You say you lend them your money for free. I want to argue this point because the maintenance on a checking account isnt free. They have to pay branch managers to run the bank, pay for the building they are in, keep power running water etc. on in the building. They have to purchase supplies to keep the bank running, pay for the vault in the bank, pay for security monitoring, FDIC insurance, the tellers at the bank, the webmaster who keeps your online banking going, and I could go on but I will stop here.
They have upkeep cost on your checking accounts. Most banks dont make money on letting you have a free checking account although your money is there. If you dont like "lending" them your money for free you are more than welcome to buy your own vault or safe and keep it in your closet.
Most of their money is made on lending. And lending especially right now is a big risk. I AM NOT SAYING THEY ARENT TO BLAME PARTIALLY because banks have been lending people more than they could afford which is partially why we are here in the first place. You see banks lose $20K, $30K, $50K, and even hundreds of thousands on foreclosures every day, they reposses autos are forced to sale them for less and take the loss unless they are lucky enought to recover the difference. People out there blame the bank when they come take their car or house they person hasnt paid for and get mad and destroy the collateral. I have a relative that bought a truck worth at least $10K in great condition and got it for less than 25% of that because when the owner found out it was being repoed he destroyed parts of it. Nothing unfixable but the bank took a bigger loss on it. Therefore on those that complete the loans and the bank makes money they have to make more than they lost on the rest.
When you miss a payment you now pose a risk of default and profit loss to them. IN THE CREDIT CARD AGREEMENT EVERYONE GETS AND ACCEPTS BY APPLYING AND ACTIVATING IT CLEARLY LAYS OUT THE PENALTIES FOR DEFAULT INCLUDING YOUR NEW APR. This lady missed a payment for whatever reason whether she forgot, the payment was late, or she didnt have the money doesnt matter at any rate because its not the banks fault she was late. She has no right to be mad that they did what they told her they would do in the terms. She is clearly wrong here. They didnt have to give her the option of closing the account and keeping the old APR they could have said tough and left the APR alone but they didnt.
Now I am not saying a bank cant be forgiving or may not be able to help their customers on a honest mistake or unavoidable problem. But instead of getting mad instantly why couldnt she have mad timely payments for 6-12 months to show that she was still worthy and then call and plead her case that it was a mistake and why and show she is being responsible and it was a one time issue and maybe then get some forgivance and working terms from the bank.
You cant expect them to say oh you didnt mean to be late this month we are sorry we will reset your terms. They dont know that you are in a good position and that you cna pay next month. Now I am not saying either some banks wont work with you more. There probably is a bank that would have helped her in this situation.
But this is my main problem with people lately. People mess up and its all of a sudden the bank who is the bad guy. But guess what when they wanted a new car and borrowed the money, or wanted a new house and borrowed the money, or wanted a credit card and the bank took a chance they were great and now the person isnt holding up their obligations and the bank is the bad guy.
And yes it has happened to me I had a Chase and Cap 1 I was late both went to default rates and were charged off. I went back and paid them since then but I couldnt make the payments when I lost my job. But guess what did I get mad at Chase and Cap 1? NO because I was the one who borrowed the money I WAS THE ONE WHO CHARGED STUFF TO THE CARD and then couldnt pay for it and they stuck with the terms and I paid for it in the end. But I dont blame them I shouldnt have borrowed money I couldnt pay back. I shouldnt have maxed out the cards if I had been PIF'ing like I should have it wouldnt ever have happened when I lost my job because I wouldnt have a credit card bill.
And now neither bank will give me the time of day and guess what I DONT BLAME THEM I WOULDNT EITHER because I screwed up not them.
I will get off my soapbox now but people need to quit blaming the banks for everything and take a little responsibility for their own actions.
