The Abominable Snowman has competition--the Abominable Banks

Banks just can’t help themselves from behaving abominably. Like sitting on $2 trillion in cash. If banks would start giving credit, American businesses would rebound tomorrow. But the banking industry owns Congress. And a Congress that can’t stand being in the same room with itself is hardly prepared to get more aggressive with banks. If change is to occur, it won’t come from within.


While my heart goes out to these kids living in parks, as winter sets in, but rallies like “Occupy Wallstreet” have no effect. President Obama couldn’t get the banks to meet for a cappuccino at Starbucks.

The US Government likes big banks because they are easier to monitor than small neighborhood banks. Yet the downside, as Adam Smith foretold years ago, is predictable. When power is concentrated in few hands, they get together and conspire to keep competition at bay.

Here’s an example–Chase and Bank of America have raised fees on simple services, like using your debit card. Bank of America, CitiGroup and JP Morgan–after the big bailout–were supposed to lower fees for consumers, not raise them. But that didn’t happen. In 2009 the average checking account holder paid $327 in annual fees. That is three times what folks paid two decades ago. Many of the fees are those “ha ha ha, we got you” fees are overdraft charges.

But many customers are fed up and have taken their business elsewhere. This is good news for local banks and credit unions–they picked up 650,000 new accounts in the third quarter of 2011.

Remember when the Administration said we had to bail out the big banks because they were too big to fail? Yeah. When you have so much influence and wealth concentrated in such a small group, you get “Too Big To Not Screw People,” or “Too Much Influence in Congress.”

The banking industry’s influence in this country has no peer. I know Chase got $100.7 billion in bailout money from the U.S. taxpayers. Chase can borrow from the Federal Reserve at almost zero interest, yet refuses to modify mortgage rates for 354,000 American homeowners. Chase holds $19.5 billion worth of foreclosed homes--the greatest number of any among Chase’s mega-bank colleagues. Chase was caught recently overcharging 4,500 military members on their mortgages. Chase’s own boss, Jamie Dimon, got $20.8 million in pay in 2010. That's about 1000 times what the average bank teller earns.

Berken’s Tip–move your money to a local credit union. Public Service Credit Union, Academy Banks (it doesn’t do credit checks) are decent. (I have never liked Bellco and how they treat my clients). As to a locally - owned bank, none better than Bank of Denver.

Cheers

Steve

Collectors

Have you ever had the pleaseure of dealing with a collector on the phone? They are relenless as far as calling. Sometimes they will autodial you ten times a day. Imagine if you have 10+ creditors. That could be 100+ calls a day. Not like you need another full time job taking these calls, right?

And it does not stop there! They call your neighbors and tell them that you are not paying your bills, and to have you call them. Yeah right! Ever hear of the Fair Debt Collection Practices Act?

Or how about this? "If you don't pay us today, we will call your boss next week and garnish your wages!" Uhm, no! You need to sue me first and win. And they can't threaten garnishment without explaining they need a court judgment first. But if you do not know this, you might pay in fear of your boss firing you.

One collection attorney's office called and scared a client into a payment arrangement that she could not afford, and after it occured to her that she had no money for food, the collector said, "if you don't pay us, you will be arrested and your kids will not have you for Christmas." Really? Is it worth it to these folks to sell their souls to the devil for $12 an hour plus commission?

And they try to make you feel bad. "Aren't you a real man? Can't you pay your bills? Do you like stealing from people? That's what you are doing to us!" BS!

And some judges are not so innocent either. If you don't show up to your hearing, most judges will find in favor of the collector. If a collector doesn't show up to a hearing--automatic continuance! If that isn't lopsided, eh?

Now they want to shorten the foreclosure period in Colorado. They want to cut it in half. Ever wonder why I have been representing debtors for 25 years? Everyone deserves a second chance.

Call me!

Welcome to the Berken Zone

...you've just crossed over into the Berken Zone.

Hello everyone. Welcome to my blog!
Technology never ceases to amaze me. Here I am broadcasting to the world from the comfort of my living room.

I know I probably sound like everybody's grandpa, "you know sonny, in my day all we had were pencils and fountain pens, and if you wanted to spread the word you had to either be the town busybody or schmooze the local schoolhouse for a date with the mimeograph!"

In all seriousness though, I am very excited to share my thoughts, rants, whines and even success stories with you. As an attorney, I have been representing people in debt for 25 years. I am tired of today's system--more importantly, I am tired the system abusing the everyday layperson that doesn't know that they have rights and options.

You know the other day I had to write a letter to a collection attorney telling him that is was not okay for him to tell my client that if she didn't pay her bill that she could go to jail? I don't know about you, but even anyone who has played the board game Monopoly once or twice knows there is no debtor's prison. If you can't afford a stay at Boardwalk, you go bankrupt. What I really wanted to send this attorney instead of a letter is the latest version of Monopoly or at least the "get out of jail free" card.

Can you tell that I am a little bit bitter? Where is it written that a person has to wake up every morning in fear of their debts? There is help out there. If you don't call me, call someone!!!

I hope everyone had a wonderful holiday. Welcome to the Berken Zone!