“Bank Transfer Day” began as a fan page on Facebook and aimed to convince people to transfer their accounts from profit seeking banks to non-profit credit unions. The idea stemmed from banks, notably Bank of America, announcing the addition of a $5.00 per month fee for customers who use debit cards in retail outlets, gas stations, and restaurants instead of cash. Of course, all the other banks watched with interest when the news of the proposed fee went public. Without a doubt, they quietly made plans for fees of their own if B of A pulled it off.
Needless to say, the news elicited a lot of negative publicity, and customers were up in arms. Evidently, the reaction was so strong that Bank of America backpedaled soon after. Not before the damage was done however… According to the Credit Union National Association, since Bank of America announced the impending debit-card fee in September, approximately 650,000 people across the country joined credit unions.
The deadline for the Facebook event occurred on November 5th and had more than 80,000 people from Facebook on board to switch their accounts from banks to credit unions. The organizer of the event, Kristen Christian, picked that date because Guy Fawkes was captured in Britain on November 5th.
Another aspect of the fee that angered customers was that it targeted those with less money in their B of A accounts. If an account holder had more than $20,000 deposited in combined accounts, they were exempt from the proposed fee. While “Bank Transfer Day” is a consumer movement instead of a political one, the impact is similar. Consumers are choosing what companies to support and in effect, are voting with their money.
One of the main differences between for-profit banks and credit unions is that banks pay dividends to their shareholders while the credit unions’ method of distributing earnings is more member-oriented. Often, credit unions will use profits to subsidize low-interest loans to members or small businesses.
With so many Americans out of work and no end in sight for most, it is disturbing to see that large banks and other corporations continue to target those who are already struggling to survive financially. Of course, the US is a capitalist country and corporations have a right to seek a profit in their business, but with the amount of misery many are suffering, is it too much to ask that the banks and others temper their greed? Or, at least, stop trying to wring every last dime from those who are already in dire straits.
Consumers have the right to choose where they spend their money; it is refreshing to see that many decided they had enough and chose to support institutions that give back to the community by reinvesting their profits with businesses who might create new jobs with them.