Dear Mr. President,
I joined a Credit Union today. As soon as my account is set up, I'm closing my old account with Chase. This decision was based on a number of factors, but the business practices of the Credit Union, which by nature is not for profit, has no shareholders, and does not wreak havoc on the financial system through unscrupulous lending and manipulative financial practices. I say this as a complete layman; economic issues are not my strong point, at all. I'm terrible with money, terrified of investing or even saying the word "stocks" and I generally only check my bank account balance after an immense inner struggle about how much I really want to know about my finances. I was finally able to extricate myself from credit card debt, and now that I have some degree of confidence in my financial stability, I want to put my money where my mouth (not to mention personal belief) is. I don't make anywhere close to $30,000 a year, and the money I do make can go to much better things than the profit margins of Chase Bank.
Perhaps it is my ignorance about most financial matters, but I find the kind of gimmicks Chase (and other banks like it) use to attract customers truly off-putting. Keep using your debit card, because you never know when we're going to give you a free purchase! The misleading way that their "overdraft protection service" has been advertised in the last few months is a perfect example of this. With this "service", customers are allowed to spend more than they have- at $31/transaction. A card without this "protection" will merely be declined if more money than is present in the account is charged. This makes sense. This alerts people to when their account balance isn't what they think it should be- always an indication that something, either their calculations or their charges, is wrong. Chase decided to wage an ad campaign to encourage people to keep being charged not to know their account was overdrawn- likely because overdraft fees made up a significant portion of the company's profits. It seems as though Chase is directly targeting vulnerable consumers who don't realize they're being taken advantage of by advertising this fee as some kind of protection.
Anyway, I feel that the Credit Union I joined today is much more honest in its practices and works to serve its members and its community, not its bottom line. That's important to me as a consumer, but not nearly as important as the work that went into making this decision. I've made a conscious effort to learn more about the financial system, the way banks and credit unions work, and the way I budget, spend, and save my own money. The absolute best way to avoid being taken advantage of by the powerful is through education and awareness, and I feel that today was a step in that direction. I will not be hoodwinked by slogans and PR; I will not be sucked in by gimmicks and games; my financial health is too important for me to trust it to others. It is my future, my freedom, and my security, as an independent individual, and I will not allow it to be threatened by my own ignorance.
I feel that this kind of financial information would be a valuable addition to basic high school education. We should prepare students for the realities of the financial decisions they'll be making; decisions about student loan debt and credit cards and responsible use of bank accounts. Preparing students, giving them all the information they need to make informed decisions and to protect themselves against manipulation is an important aspect of education, and this latest financial crisis clearly demonstrates how urgently this awareness is needed.
Respectfully yours,
Kelsey
Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Friday, April 2, 2010
Friday, February 19, 2010
Day 50- Why I write
Dear Mr. President,
This is the fiftieth letter I've sent you. I've written you every day this year, and have every intention of continuing to do so for the duration of 2010. This daily ritual has become a grounding, calming constant. I read the news, or your books, or the political blogs, and I try to think of something relevant to say. Often it comes out less eloquent than I wish, often I struggle, wondering what a person like I could possibly have to say to a person like you. Generally I am comforted by the thought that, for all of your wisdom and experts and resources, one thing you can not do is lead an average life. You cannot know how an average person lives and how your policies relate to them, unless we tell you. I understand that you get about 40,000 letters a day, so I suppose lending my voice and my narrative to those of the masses can't hurt, and might even give you a clearer picture. Most certainly, I gain more from the writing than you would from the reading of these letters.
Today the White House blog posted about the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, warning consumers to prepare for a better relationship with their credit card companies, starting Monday. Just last night I was struggling with my own card, so this caught my attention. After receiving my tax return, I paid off the entire balance on my card- not an insignificant amount- and I cannot convey what an incredible feeling this was. I was so proud, so happy to finally be done with all of that debt. Then, last night, I noticed it had a balance, once again, despite never having used it. My bank had levied more than $30 in fees, because of a $.27 cent charge! I paid the card off, again, called the company and angrily demanded that they close the account entirely. I now have no credit card.
Reading through the proposals in the CARD act, I have to say I may consider signing up for one, from a different company, after the law goes into effect. My parents would argue that they are good to have in emergencies, and now, at least, I feel the new regulations will protect me from deceptive terms and unfair fees. I think this new law will do a lot of good, and will help many members of my generation avoid ending up, as our parents have, drowning in debt they can't hope to repay. Thank you for your efforts in passing it.
Respectfully yours,
Kelsey
This is the fiftieth letter I've sent you. I've written you every day this year, and have every intention of continuing to do so for the duration of 2010. This daily ritual has become a grounding, calming constant. I read the news, or your books, or the political blogs, and I try to think of something relevant to say. Often it comes out less eloquent than I wish, often I struggle, wondering what a person like I could possibly have to say to a person like you. Generally I am comforted by the thought that, for all of your wisdom and experts and resources, one thing you can not do is lead an average life. You cannot know how an average person lives and how your policies relate to them, unless we tell you. I understand that you get about 40,000 letters a day, so I suppose lending my voice and my narrative to those of the masses can't hurt, and might even give you a clearer picture. Most certainly, I gain more from the writing than you would from the reading of these letters.
Today the White House blog posted about the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, warning consumers to prepare for a better relationship with their credit card companies, starting Monday. Just last night I was struggling with my own card, so this caught my attention. After receiving my tax return, I paid off the entire balance on my card- not an insignificant amount- and I cannot convey what an incredible feeling this was. I was so proud, so happy to finally be done with all of that debt. Then, last night, I noticed it had a balance, once again, despite never having used it. My bank had levied more than $30 in fees, because of a $.27 cent charge! I paid the card off, again, called the company and angrily demanded that they close the account entirely. I now have no credit card.
Reading through the proposals in the CARD act, I have to say I may consider signing up for one, from a different company, after the law goes into effect. My parents would argue that they are good to have in emergencies, and now, at least, I feel the new regulations will protect me from deceptive terms and unfair fees. I think this new law will do a lot of good, and will help many members of my generation avoid ending up, as our parents have, drowning in debt they can't hope to repay. Thank you for your efforts in passing it.
Respectfully yours,
Kelsey
Friday, January 29, 2010
Day 29
Dear Mr. President,
I filed my Tax return today, and, to my great surprise, I'm getting a refund more than double what I'd anticipated. This is largely due to the American Opportunity Tax Credit which was, surprise surprise, part of the stimulus bill. I'm going to use half of it to finally pay off my credit card. My best friend, upon hearing of my refund, exclaimed, "let's stimulate the economy!", so you can bet we'll be spending the other half more quickly than we should. I have to say, it's difficult not to feel happy with the Recovery Act when I have such tangible evidence of how I personally benefit from it. I'm a fairly well-informed person, and even I had no idea how much the Recovery Act was going to benefit me. I think, had it been explained better, more people would have supported it, and been happy with your administration's efforts.
Anyway, my worries about credit card and student loan debt, my anxiety about returning to school, my general stress about the state of my finances is greatly alleviated by all of this. Thank you so much. I'm generally not opposed to paying taxes, but I won't lie- it was nice not to pay so much this year. I'm still glad you didn't concede to Republican requests for an across the board tax cut in your discussion with them today. Not cutting taxes for the very wealthy, for people like my former CEO, is an incredibly sensible thing to insist upon, and I feel that you did explain this very well. You do a much better job of admitting mistakes, taking blame, and discussing the ideas of your political rivals than I feel President Bush ever did.
The coverage of the State of the Union address continues to be divided along ideological lines, which is upsetting but in no way surprising. Today I watched Jon Stewart mention his perception of your administration as being a third entity, being isolated from congressional Democrats and Republicans. I don't know how accurate his impression of this is, but I think it indicates the sense people have of the Democratic party being fractured so badly it is unable to effectively lead. I sincerely hope that your State of the Union address helped ease this, and that congressional Democrats rally to the pass the proposals you outlined in the speech. I would hate to lose control of the House or the Senate in November, but if the Democrats don't see the ramifications of their in-fighting and start governing more effectively, we deserve to.
Listening to your speech Wednesday, and your answers to the Republicans today, I have to say you sound just like you did in The Audacity of Hope and its nice to know you're still that optimistic. I can't speak for any one but myself, but for me, at least, that optimism seems to be catching.
Respectfully yours,
Kelsey
I filed my Tax return today, and, to my great surprise, I'm getting a refund more than double what I'd anticipated. This is largely due to the American Opportunity Tax Credit which was, surprise surprise, part of the stimulus bill. I'm going to use half of it to finally pay off my credit card. My best friend, upon hearing of my refund, exclaimed, "let's stimulate the economy!", so you can bet we'll be spending the other half more quickly than we should. I have to say, it's difficult not to feel happy with the Recovery Act when I have such tangible evidence of how I personally benefit from it. I'm a fairly well-informed person, and even I had no idea how much the Recovery Act was going to benefit me. I think, had it been explained better, more people would have supported it, and been happy with your administration's efforts.
Anyway, my worries about credit card and student loan debt, my anxiety about returning to school, my general stress about the state of my finances is greatly alleviated by all of this. Thank you so much. I'm generally not opposed to paying taxes, but I won't lie- it was nice not to pay so much this year. I'm still glad you didn't concede to Republican requests for an across the board tax cut in your discussion with them today. Not cutting taxes for the very wealthy, for people like my former CEO, is an incredibly sensible thing to insist upon, and I feel that you did explain this very well. You do a much better job of admitting mistakes, taking blame, and discussing the ideas of your political rivals than I feel President Bush ever did.
The coverage of the State of the Union address continues to be divided along ideological lines, which is upsetting but in no way surprising. Today I watched Jon Stewart mention his perception of your administration as being a third entity, being isolated from congressional Democrats and Republicans. I don't know how accurate his impression of this is, but I think it indicates the sense people have of the Democratic party being fractured so badly it is unable to effectively lead. I sincerely hope that your State of the Union address helped ease this, and that congressional Democrats rally to the pass the proposals you outlined in the speech. I would hate to lose control of the House or the Senate in November, but if the Democrats don't see the ramifications of their in-fighting and start governing more effectively, we deserve to.
Listening to your speech Wednesday, and your answers to the Republicans today, I have to say you sound just like you did in The Audacity of Hope and its nice to know you're still that optimistic. I can't speak for any one but myself, but for me, at least, that optimism seems to be catching.
Respectfully yours,
Kelsey
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