More than 600 people from several organizations throughout North Carolina are expected to march on major financial institutions in Charlotte on Friday, calling for banks to lower the rates it charges most customers to borrow money and maintain credit cards.
 
Organizers with NC United Power and NC Industrial Area Foundation have pulled together representatives of 215 black, white, Latino, middle class and working class organizations to protest interest rates and charges they say are crippling too many Americans.
 
“This is the headquarters for a number of major financial institutions. We want to meet with the leaders of these institutions, and we want them to hear and address our concerns,” NC United Power’s Jerald Taylor said Tuesday during a press call that included BlackAmericaWeb.com.
 
The organizations are calling for Bank of America and Wells Fargo/Wachovia to suspend all “usurious” activities, including payday lending, rapid refunds of tax returns, sub-prime lending and high cost fees and penalties. They also want to see a voluntary 10 percent cap on interest rates for consumer and small business lending and a 6 percent cap on all current loans and credit products to veterans and active-duty military.
 
“Ten percent is enough interest for banks to make a profit,” Taylor said. “And laws requiring a 6 percent cap on interest rates for active-duty military already are on the books, but no one really is enforcing it.”
 
Some banks have already taken steps to reduce fees on some of their products and services.
Last week, Bank of America announced changes that include not charging for overdraft fees when a customer’s account is overdrawn by less than $10.00 and limiting the number of overdraft charges to no more than four items a day. Those changes take effect Oct. 19, according to a prepared statement from Bank of America.

Also last week, Wells Fargo/Wachovia announced it will eliminate overdraft fees for customers when they overdraw their accounts by $5.00 or less and will charge no more than four overdraft fees per day.

Both Bank of America and Wells Fargo/Wachovia customers will allow customers to opt out of  overdraft coverage, meaning customers can specify that they don’t want their transactions authorized into overdraft if funds aren’t available to cover the transaction.

An article published on MarketWatch referenced data from the Federal Deposit Insurance Corp. and said that the banking industry earned $39.5 billion from service charges on deposits last year. Fees for everything from ATM usage to balance transfers accounted for about 25 percent of the industry's total revenue, the article stated.

The changes in overdraft policies and fees will make a difference for consumers, but even greater changes are needed on the lending rates and fees, advocates say.

Kelly Carpenter, pastor of the Green Street United Methodist Church, said he regularly encounters people in the community and in the church who are having difficulty making ends meet because of high interest loans and credit cards.
 
“People are struggling to keep up,” Carpenter said. And not necessarily because they are out of work, he said.
 
“Banks have not been responsible. We’ve seen more arrogance on the part of banks since the bailout, and I find it offensive,” he said.
 
Imani Coleman, a student at a technical school, recalls her first experience with a credit card. She received one with a limit of $250 and a chance to increase the limit while building her credit.
 
Instead, Coleman said she ended up paying more money in fees and hidden costs than the card was actually worth. “I paid about $500 to pay the card off,” Coleman told BlackAmericaWeb.com.
 
Kathleen Day of the Center for Responsible Lending said blacks and Hispanics are disproportionately impacted by unfair and deceptive lending practices, such as pay day loans and subprime mortgages.

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They are telling the truth. Sounds like if you dont want to hire us then we wont give your our money. Cut up the cards get a Russell Simmons prepaid card using your 401 K funds. I am confident Bank of America etc will come to grip with your terms. 401 K is shaky too people October I expect another market crash. Take it out.

by   
Elchar
October 1, 2009, 8:18 am
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@REAL_Change_is_Needed

Yes my friend. We need to embrace individualism. Everyone has a sob story and elitist don't care. Lets take responsibility for our actions.

by   
MikeCockrell9
October 1, 2009, 4:46 am
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Black America is making a FOOL of ourselves by these lame "Marches" instead of digging in and advocating PRINCIPLES. We dont need no marches anymore, all we need to do is SAVE money (outside of education) and STOP using Credit Cards. Obama is Whack and Imma vote Huckabee next election because if yall cant already tell, Obama has done absolutely NOTHING. LOOK at his home-state Chicago, who the freak should/would follow Pres Obama's lead when his city is falling apart? We are becoming a LOST cause if we as black folk dont WAKE up and follow Jesus Christ instead of RAP Music. God Bless yall

by   
REAL_Change_is_Needed
September 30, 2009, 8:43 pm
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Didn't Obama ALREADY sign legislation to fix this problem that will go into effect soon? The MOST effective remedy would be to STOP doing business with these companies. We have to quit marching with our feet and our mouths and chose rather to march with our money. Only your dollars make sense to rouge companies not rhetoric.

by   
Drwill911
September 30, 2009, 9:48 am
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