B of A Cancels Overdraft Fees, Re-institutes Debtor Prisons
NEW YORK – Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards, and instead may be thrown into debtors prison. It’s a step that may become a common move ahead of new regulations limiting overdraft fees.
Rules set by the Federal Reserve that will ban banks from charging such fees, without first getting permission from the customer, are set to take effect July first.
But Bank of America is going a step further than the regulations require. It will no longer allow debit card purchases to go through if there isn’t enough money in the account. And if the customer continues to overdraft their checking accounts or fail to pay their credit cards on time, they will be sent to debtor prisons.
Debtor Prisons have been politically unpopular in the United States since 1833, but recently, conservative politicians such as Sarah Palin and Dick Cheney, and even democratic pundits like Paul Begala and James Carville have recently expressed a certain warmth for the idea. The prisons are reported to be administrated by the Blackwater security firm, the troubled company that hired mercenaries in the Iraq and Afghanistan wars. “We’ve been wanting to move away from the image of the ‘mercenary’ company, and feel this is a perfect opportunity to branch out” said Blackwater founder Eric Prince. When asked about concerns of civil rights issues related related to Blackwaters past, and the rights of consumers who find themselves in debt, and Cheney replied “They can go f**k themselves”.
Some extreme repeat offenders may even find themselves headed to a secret facility rumored to be built along side the terrorist detention center located at Guantanamo Bay.
“I think banks will use this as an opportunity to be creative and differentiate themselves from the weak-kneed Federal regulators in ways that was really hard to do when everybody had a free checking account,” says Robert Meara, a banking analyst with the consultant firm Celent.
Consumers have demonstrated a willingness to pay overdrafts for covering the mortgage and the car payment, said Greg McBride, who follows the banking industry for Bankrate.com. Now, if they continue to be delinquent on those large ticket items, they may be on a boat to Cuba, “But not if it’s things like covering a latte and a scone.” McBride assured.
Original Story Here.
NOTE: B of A may actually be behind the curve as far as debtor prisons are concerned. More info here.