The president of the United States, Joe Biden, is clear that the economy is the star issue of the legislative elections on November 8. In the midst of the campaign, he has announced a battle against abusive commissions (“garbage commissions”, he has called them) that banks charge their clients to “return money into the pockets of citizens”. That inflation worries him has been noted in the fact that he has taken advantage of his appearance on bank commissions to insist that the price of gasoline is falling and that, incidentally, he has taken the opportunity to campaign.
The US government has announced that it considers two specific commissions illegal. Those charged by banks for an overdraft when there was sufficient money in the account at the time the payment was authorized, and those derived from checks returned after being deposited in good faith by the recipients thereof.
Biden has given a very graphic example of these latest commissions: “Imagine that your son outgrows his bicycle and you decide to sell it online and someone pays you $30 with a check. Days later, you deposit that check with which you were paid in your bank and it is returned, although you did not expect it, and they charge you 15 dollars. That’s wrong. It’s ridiculous. It is unfair. My administration is making it clear today that it is also illegal,” he said. in his speech from the White House.
The other case is unexpected overdraft fees, which occur when someone checks your balance to write a check or make a card payment and has enough money, but then turns out to be overdrawn because the bank has been late in processing others. previous payments and it turns out that there was not enough money. “When the bank begins to settle the transaction, your account is already overdrawn. They charge you a commission for overdraft that is around 35 dollars each time. It’s not your fault, the bank made a mistake. It was the bank’s fault. You had a positive balance when you paid the bill. It is simply a mistake. Today my government makes it clear that it is also illegal.”
Biden assures that these new measures will save consumers more than 1,000 million dollars each year. “That’s a lot of money that goes back into people’s pockets,” she stressed. And the goal is to put an end to other abusive commissions that in total cost Americans 24,000 million dollars, she has assured.
“Americans are willing to pay for legitimate services at a competitive price, but are frustrated when they are hit with junk fees for unexpected or unwanted services that have no value to them,” said the director of the Financial Protection Bureau. Consumer Affairs (CFPB), Rohit Chopra, who has appeared alongside Biden. “We are providing guidance on existing law that will help law-abiding businesses looking to compete fairly and serve families.”
Although Biden has taken advantage of this Wednesday to sell his stockings in the middle of the campaign, the CFPB launched the initiative to analyze bank commissions last January and ensures that banks have begun to compete more. Earlier this year, several banks announced they were eliminating overdraft fees or updating their policies to be more consumer-friendly, says the CFPB, which estimates these changes save consumers $3 billion.
Airlines and hotels
Biden has not limited himself to the financial sector. His government is also attacking abusive commissions from airlines, hotels, internet providers and demanding more transparency with them. “They benefit large companies, not consumers. No to working families. And that changes now, ”said the president in an appearance after which he did not admit questions.
“Capitalism without competition is not capitalism, it is exploitation,” he has sentenced, assuring that his efforts are focused on the middle class. It’s about saving $200, $300, $400 for the average family, she explained. “Many of you come from backgrounds like mine, we are not poor, just normal people. But that matters. It matters in your life. And by the way, I’m going to work very hard to make sure that the oil companies pass on the reduction in the price of a barrel of oil to the pump. So anyway, I’m optimistic, it’s going to take some time. I am aware of the frustration of the American people ”, he has finished.
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