I grew up the son of a businessman who tried to apply the principles of business to everything. Just like it was a mistake a hundred years ago to try and apply the principles of science to everything (and we are still paying the price for that), the current trend of applyng the principles of business to everything is equally stupid. That just expains that while I am pro-idea of capitalism, I tend not to like large businesses.
A retired cop and his wife, in February, 2010 were shocked to find out that the Bank of America had begun foreclosure on their property. The shock was: the couple paid cash for the home and never had a mortgage, let alone any business relationship with Bank of America. They tried to alert the bank to this, they were rebuffed, and it forced them to hire an attorney and go to court. In addition to winning a slam dunk case, they also were awarded fees from the bank to cover having to hire an attorney: about $2500.
The couple had to repeatedly phone and mail the bank to get those fees … and it never happened. Letters to the bank’s attorney went unanswered.
So, the couple took out a foreclosure on the bank …. rented a moving van, pulled up to the bank with sheriff deputies, and ordered the bank to remove its own money from the vault, remove their computers and furniture immediately from the premises.
Needless to say, a check for the attorneys’ fees was produced very quickly.
The article goes on to make a couple of ominous points.
1. This “blame someone else mentality” that tha bank put forward as an exucse seems to be indicative of the issues that were prevalent when failing banks helped put the economy in the drink. As was pointed out, its amazing how banks always seem to be accident prone in overcharging the customers … banks never seem to make mistakes the other way around.
2. There is already a notable percentage of the population, many in urban areas; African-Americans and Latinos in particualr who have a culture of not using banks for a variety of reasons. The lack of trust in banks is now ggrowing, and it is growing into parts of the population that normally don’t have this cultural antipathy toward the banking system. I wonder, if in the long run, this will have a negative impact on the banking industry.