Banks Screw Customers in Regulatory Pout
Fees soar in revenge for tougher rules in the works in Congress
By Kevin Spak,  Newser Staff
Posted Jan 6, 2010 9:18 AM CST
In this July 27, 2007 file photo, signs for American Express, Master Card and Visa credit cards are shown on a New York store's door.   (AP Photo/Mark Lennihan, File)

(Newser) – With a slew of new regulations headed their way, banks are jacking up their fees and credit card rates, in a blatant attempt to squeeze every last penny out of their customers. They say they’re just trying to recoup the money these new consumer protections will cost them. For example, banks must now notify customers before changing their credit card contracts. “They’ll have to send out more letters, which has a cost,” says one executive.

“That’s one way of looking at it,” allows David Lazarus of the LA Times. “Another is that banks are cheesed because lawmakers are showing some uncharacteristic backbone…and they’re turning the screw because, well, they can.” They say it’s just the free market in action, which is pretty funny. “Where were all those market forces when these guys were making staggeringly reckless investments in mortgage-backed securities?”