Last week, JP Morgan Chase, the largest bank in the U.S. by assets, announced they plan to start charging fees for having a checking account, and one of its representatives was upfront and direct in saying this was targeting customers that have lesser holdings at the bank.
Marianne Lake, the CEO of consumer and community banking at Chase Bank, revealed that new regulations that would cap overdraft and late fees will make everyday banking way more expensive for all Americans. In response to that, Chase Bank will be passing on these additional costs onto customers.
The Wall Street Journal reported:
Banks are saying this time could be different because of the scale of new financial regulations coming out of Washington. Agencies such as the Consumer Financial Protection Bureau are proposing an $8 cap on credit-card late payment fees and a $3 cap for overdrafting bank accounts.
They are also planning to further limit debit card fees and how much they can charge to software companies like Venmo and CashApp for accessing and using their customers’ data.
On top of that, new bank capital rules would make it harder for banks to lend by requiring them to hold more reserves against mortgages and credit card loans.
It is possible some of the rules could be watered down, or not become law at all, if Donald Trump takes the White House in November. But as the landscape looks right now, Lake said many of the types of basic services that Chase customers have become accustomed to—including free checking accounts, credit score trackers, and financial planning tools—won’t likely be free anymore.
The changes will be broad, sweeping and significant. The people who will be most impacted are the ones who can least afford to be, and access to credit will be harder to get.
It is not practical for many of the services to be free if we won’t be able to draw from those profit pools.
Lake said
‘JPMorgan Chase reported record returns in 2023 for the sixth year in a row, with full-year net profit hitting $49.6 billion,’ The Daily Hodl noted.
Moreover, ‘Business Insider reviewed a Chase presentation that covered the expected impact of proposed regulations. The presentation estimated that two out of three consumers would have to pay a fee for checking accounts if the cap went through.’
Dennis Kelleher, president of Better Markets, an economics think tank that is in favor of the proposed bank regulations, disagrees with Lake’s assessment and does not believe the costs have to be passed onto customers.
“The banks say that their only option is to pass on their costs to customers, but that’s not true,” he said. “Yet again, banks are dressing up their attempts to maximize their own profit under the guise of what’s good or bad for customers.”
Dan Goerlich, a consulting partner at PricewaterhouseCoopers who advises bank clients, commented also, saying: “Any change in regulations that would cap fees will create opportunities for institutions that are highly efficient. Big banks can make up for a dent in consumer banking revenues with profit from their wealth management and investment banking arms. Smaller and regional banks will struggle to make up for that.”
Most customers can access retail banking easily and seamlessly today. It might be disadvantageous to keep services at zero cost, but banks’ hands could be forced by other competitors who will offer customers low-cost services.
Goerlich added
AUTHOR COMMENTARY
This really does come to fruition, I see this as an indirect attack on cash. Customers will close their accounts, lest they pay more, and thus resulting in less cash and check transactions. Or, cash-strapped Americans who bank with Chase will be bled dry even more than they already are.
Ultimately, this may aid and increase usership of the instant transfer payment system FedNow the Federal Reserve introduced last year.
Any little way the banks in collaboration with the government can tax the people, they will do it.
Proverbs 28:11 The rich man is wise in his own conceit; but the poor that hath understanding searcheth him out.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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I have a LOT of $$$ in Chase with multiple accounts. I sent this article to my Chase account rep who has yet to get back to me on the bank’s decision to sell customer transactions for a profit.
i will start to press the issue. let’s see how long before the bank kicks me out. I am wondering why i bother busting my butt when it is so easily taken away, but we must press on. No quitting because that is why they are instituting these policies. heck, even Coca Cola is woke in case no one has yet noticed
Let us know what comes of that.
Hopefully people will leave JP Morgan Chase if able.
Two words describe this whole deal; EVIL GREED!
What more needs to be said;
1Ti 6:9 But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition.
1Ti 6:10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
Desperation. While it’s yet to be revealed which banks are in big trouble, I suspect this answers that question. For awhile, folks have been leaving these larger institutions who basically got themselves into this mess by not properly vetting those worthy of the loans (of all kinds) they gave out.
Bonus is . . . they want to discourage use of cash.
All their customers should file a HUGE class action lawsuit or threaten to close their accounts and go elsewhere leaving the bank to file bankruptcy lol
People need to start taking real stances and control back of all these businesses and their taxes
Creating a law that does not allow and government employee of an position to touch or move and of their tax dollars without all the people’s (excluding new migrants and asylum and refugee) that have contributed the longest.
But one can only dream to live on a RIGHTEOUS world, right!
May God raise the godly men within the churches to lead the nation’s