The New Banking

Something so simple, the other day, turned into a monumental neon sign for me.  I try to keep my family in natural health care products, but one daughter and sometimes my Mom insist upon paying.  I tear up my daughter's checks, but Daddy doesn't like to refigure his checkbook, so when I know Mom is sending a check, I just send extra product . . . It's how we roll.  Anyway, none of the family interaction was the bad experience.  The bad experience came at the bank, Arvest bank.  For years I avoided Arvest bank, simply because some of the major shareholders are also the major shareholders of Wal-Mart.  I really didn't want to be a part of the big corp connection, but . . .

When I began an online business, and online booksellers began carrying my books, everything changed.  In order to transact business online and accommodate clientele, a Paypal account seemed essential.  In order for online booksellers to sell my books, they insisted upon an account for direct deposit, so . . . all of a sudden, Arvest didn't seem so bad.  It was already part of the big corporate order and I could keep my internet business out of my personal business, to a point.  I am well aware, somewhere behind the curtain, it's all connected.  I'm sort of a cubby hole kind of thinker, so Paypal, amazon, and internet book sellers could all have access to an Arvest business account and my personal account in another bank, would stay as personal as the banking system allows.  Business accounts are about the only free accounts at Arvest, anyway, so my personal business is preferred elsewhere.

Mom had made the check out to me, personally, rather than my business.  Since it was for product though, I wanted to run it through my business account, to make sure I didn't overlook it, regarding my income taxes . . . My attempt at honest business integrity turned into a prohibited banking procedure.  Remember the days when someone could endorse a check made out to them, and give it to another person.  They were called two party checks and I had no idea that option no longer existed, or least is not an option at Arvest Bank.  Now this was no anonymous or questionable two party check.  I am the authorized signature on the business account, so I thought I was simply signing over a personal check to be deposited in a business account in which I am authorized to make deposits as well as write checks.

The young man at the drive through window informed me, they could not cash the check, nor could I deposit it in the business account.  When I made inquiry as to why, the response was;  'it was simply bank policy.'  I informed him, I had not received the memo.  His suggestion is what put me over the top.  He suggested I take the check to Wal-Mart . . . I hope my expression gave him a clear indication of what a profoundly stupid idea I found that to be.  It was then, I realized, there really is more going on here, than meets the eye . . . How can a store process a two party check, while a bank cannot?  If in fact, Wal-Mart accepted my two party check, which I haven't been to a Wal-Mart in over a decade, but if the Super Center did, why would they not have the same problem I was experiencing?

My first thought after all this was to just tear up the check and deal with Daddy, but I decided to see if I could run it through my personal account.  No problem, no questions, no hassles.  I had a bit more business to tend to, and then headed back to Arvest bank to make a sizeable withdrawal.  There's simply no reason to let them use my money, when I have no say over $20.00 in the account.  I walked in and asked the minimum balance required to maintain a business account.  The poor teller thought I wanted to open an account.  We quickly resolved that misunderstanding and the young man who had mis-dealt with me earlier slinked back into the shadows of the drive through . . . The reality was, even with the written policy regarding accounts, the teller and the manager could not tell me how much was needed to maintain the account at no charge.  I had my check book in hand, ID, which they required twice . . . and I don't use a debit card or bank online.  I can't even imagine what I'd gone through if I didn't have my very own paper trail in dealing with this situation.

I wrote a check to reduce the account balance and that required my ID again, as well as what I considered a strange processing procedure.  This is the same bank, where an employee informed me I needed to use their online banking.  When I told her I preferred a paper trail, just in case; she actually stated that "banks don't make mistakes."  I believe that was before the BailOut was given.  Now this situation wasn't over a huge sum of money, but what I considered was the fact it also wasn't my only option.  What if that $20.00 check was actually needed to put food on the table or gasoline in my car and what if that Arvest account was the only one I had?  Would I have had to take my "two party check" to Wal-Mart to buy my food?

The War On . . .

The war on drugs was declared back in the 70s I believe, and that seemed to increase the problem, while also making a nation of legal addicts with millions of prescriptions.  The war or terror has certainly increased the pockets of terrorist activity and locked down a number of freedoms.  Both of these wars have also made a booming business of the prison industry.

Now there's a new war.  It's the war on cash and both of the previously mentioned wars are cited in the reasoning . . . I use the term "reasoning" quite loosely.  It would seem The Powers That Be hold to the firm belief that drug dealers and jihadists keep their money in banks.  I have no idea why anyone in either of those lines of work would risk a paper trail for the current interest rates, but that's their story and they are sticking to it.  The war on cash is actually, of course, aimed at the average citizens and independent businessmen.  The war on cash is the slow desensitization toward the mark of the beast for buying and selling, not to mention tracking us.  Since most people have automatic deposit for their paychecks, pensions, and SS, the only reason to further monitor bank accounts would be for those who legitimately operate in cash, buying and selling without credit and payments.

This one hits rather close to home.  I have never used a debit card.  I average writing two checks a month and for the rest, I operate in cash.  It's not a large amount of cash, just for the feed store and a few incidentals.  I'm certainly not going to hit the designated amount mentioned in the article, on a regular basis but paying cash for larger items could easily hit the $5,000.00 marker.  Most folks selling a used vehicle want cash.  They don't take payments and nobody wants a check.  

I think of the truck I just purchased.  I purchased it from a dealer, so there is a paper trail, but I counted the cash out on the desk.  That kind of cash isn't laying around my house, so obviously, the cash withdrawal at the bank would have been flagged.  This new oversight truly seems just too Big Brothery to even try to sell to the American people.  There is no reason to track the average business person's bank account, and for people like me with little money and few transactions, it's one more invasive policy clearly outside of the stated purpose.

Credit Offers

I didn't catch this right away, but in looking back over the past year, I can see, a "kahootzing" unfolding.  Clearly, the banks knew quantitative easing was coming to an end and interest rates would no longer be stagnate at ZERO.  Was this conjecture based upon past trends?  I don't think so, since this economic disaster, compared to the Great Depression and there is now a global economy.  This is no conspiracy theory, and no history that is comparative.  This is simply the way an economy of perpetual motion operates.

Since the interest rates plunged and remained at basically 0%, literally flat-lined for five years, banks have had to get creative to make money and keep folks interested in letting them "hold" their money.  In this time of low interest rates and job insecurity, the average folks don't have so much money to hold.  Once the Big Banks were bailed out, they could start making some interesting credit offers to get the perpetual motion rolling again.  Credit offers are not always made based upon a good credit history, but increased expenses, times of struggle, or even poor money management can be part of the equation.

I knew when the last long term CD matured, I would not renew it.  It wasn't a great rate, but it was by far better than 0.5% for 5 years.  Interestingly at that same time, I heard Abba speak of enlarging the tent, so a sizeable expense was about to take place.  As it turns out, two additions were added for about the same cost as the value of the CD.  Abba is so economical.  Now, here is how I got into the world of credit offers . . . The retailer of the building supplies offered a discount if one used their credit card.  Rather than just pay cash, I would actually be saving money to use their card with a discount, provided I paid the balance in full when the bill arrived.  The mature CD made that a simple task, but, it got my name in some sort of active credit card offer pool.

Suddenly, the bank that carries the one credit card I have had for over twenty years, offered balance transfers at 0% interest for a year, but there was a 4% transaction fee, up front.  The bank, which could borrow money at 0% interest could pass that savings on to me, but actually make 4% interest by calling it a fee.  The fine print was really great.  If I'd taken them up on this wonderful offer but didn't get it all paid back in the 0% time frame, the interest rates would soar on the remaining balance and my old card would then have a brand new interest rate.  The new credit card with sizeable charges had placed me in database with a presumed balance.  When these opening discounts or special rates are offered, the lender is planning on a balance to be carried, which is backed with statistics.

When I started my business, which had very minimal start up costs, the credit offers came pouring in.  All I had done was register my business name with the state.  I had credit offers before I had a bank account, which made me wonder . . .  The line of credit I was offered was enormous and clearly not commensurate with the possible, potential profit of a new business.  I was immediately offended.  I felt like they wanted to own my new business and me!

I could go on and on . . . but the point is, with every credit offer, came the reality of potential bondage.  Paying my monthly balance on a single card didn't bring new credit offers from every direction.  Signing up for a new line of credit and starting a business opened the door to an avalanche of offers, which for many, literally results in an economic avalanche.  These banks and credit companies know that!  They bank on it.