Legal Commentary

Fred Clark on the Cost of Being Poor

By Professor University of Miami School of Law

slacktivist: Same to you, buddy writes a great rant about the costs of being poor

Last year, U.S. banks collected about $36 billion in overdraft protection fees. This year, they expect to transfer about $38.5 billion out of customers' accounts in the form of such fees.

$38.5 billion. $105 million every day. $4.4 million every hour. $73,250 every minute. More than $1,200 a second. Transferred directly from the poor to the rich.

$38.5 billion.

And by the time he says,

The point here, I suppose, is that check-cashing fees may be an exploitative scam run by sleazeballs, but that they may turn out to be a more prudent option for the working poor than the even-more exploitative scam run by the more mainstream, but sleazier sleazeballs of the banking industry.

… the banks look far more exploitatrive than Wal-Mart charging $3 to cash a check.

Full post as published by Discourse.net on September 08, 2009 (boomark / email).