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I have three bank accounts. One in Missouri. One in Ohio, and one in the virtual world. I never closed my Missouri account because there were too many recurring monthly debits and a direct deposit that I didn’t want to fill out all the paperwork to add those debits to a new account. I needed a new account in Ohio so I could cash checks and withdraw money fee free when I needed cash in my pocket. A bill introduced in Congress would eliminate this headache for consumers, and make it easier to open and close bank accounts.
U.S. Representative Brad Miller is calling his bill “The Freedom and Mobility in Banking Act.”
“As megabanks flirt with menus of new fees, an increasing number of Americans will want to switch banks,” Rep. Miller said. “That is the way things work in a competitive, free market as unrepentant banks are still trying to rake in vulgar profits from their customers.”
There’s been a backlash from consumers as banks add fees to accounts and free checking disappears. Many are just paying the fees because of the aggravation associated with moving your accounts.
The bill would allow you to change your account at not charge, by any means necessary, and at any time even if your account balance is negative. You also can’t be charged additional fees once you close your account which is happening right now. The bank will have to alert you of any preauthorized or recurring debits that hit your account within 30 days after you close it. If you have direct deposit and give the bank your new account number, they’d have to move a deposit that posted after you moved your account.
When you change accounts it’s all about timing. It takes a few billing or paycheck cycles for the debit or direct deposit to take effect. This bill will help eliminate the scheduling nightmare.
I’d like to see it go even farther. When you move or switch carriers, you can take your cell phone number with you. Why can’t I take my bank account number with me? I have so many sets of numbers jumbling my head, I don’t even try to remember my current account. When I make a deposit or withdraw money, I leave the account number blank and have the teller look it up. They never complain about it. Maybe a lot of people do this because they can’t keep all the numbers straight.
While the bill calls for mobility, it’s not calling for portability but as this gets discussed perhaps portability will be brought into the conversation.
Image may be NSFW.
Clik here to view.
Image may be NSFW.Clik here to view.
