As featured on p. 218 of "Bloggers on the Bus," under the name "a MyDD blogger."

Wednesday, September 23, 2009

Maybe Everyone In The Country Can Send A YouTube Testimonial

Ann Minch sent a debtor's revolt video to YouTube a couple weeks ago, refusing to pay off her credit card debt with Bank of America unless the company negotiated a lower rate, which they could easily do since they are receiving interest-free loans from the Federal Reserve. After some Internet notoriety and a handful of conversations, she actually succeeded in getting BofA to lower her interest payment.

The executive "tried to get me to agree to 16.99 percent and I said, 'No, nope, I believe because you guys are getting your money from the Fed at zero percent interest... that 12.99 percent is a more than generous profit margin for you guys.' So he did finally agree to that and he also agreed to send me that in writing."

Unfortunately, it's not practical for everyone facing an exorbitant usury fee from a major bank to shame them into compliance. We need the federal government undertaking a debtor's revolt, not individuals who don't have the same leverage.

However, with respect to Bank of America we may be turning a corner. The SEC is broadening its investigation against the bank, perhaps in response to the company's foot-dragging on compliance with that probe. BofA just missed a Congressional deadline to turn over documents to the House Oversight Committee about the takeover of Merrill Lynch. And as Chris Dodd sought to hammer banks for their automatic overdraft fees to customers, BofA and other banks are moving to change their practices.

Maybe this revolt thing is catching on.

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