Protesting the 'Toxic' Spread of Higher Fees and Rate Hikes

SEIU, the Service Employees International Union, is organizing demonstrations in six cities today to call attention to the abusive credit practices of our country's largest lenders, including Washington Mutual (WaMu). Protestors in Ft. Worth, Houston, Los Angeles, Miami, New York City, and San Francisco will be wearing HazMat suits and carrying signs that detail the spread of the "greed virus" -- skyrocketing credit card interest rates and "obscene" overdraft and late fees.

Another purpose of SEIU's protest is to deliver a warning about what it sees as the 'toxic' combination of giant private equity firms with banks. In June, WaMu joined forces with the Texas Pacific Group (TPG), a private equity firm "known for squeezing returns as high as 20-30 percent or higher over relatively short periods," according to SEIU.

The union, which represents health care, property services, and public service employees, believes that such a partnership can worsen the banking crisis. "Private equity firms may squeeze their returns from troubled banks through higher fees, and increasing interest rates as well as unfair lending practices."

So don't be surprised if you notice people in HazMat suits near a WaMu branch when you're out and about at lunch time. I hope you'll stop by and thank them for publicizing these issues. As a child of the 60's, I love the notion of protests like this one, which calls attention to a serious problem in an ingenious way. What do you think?

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Comments

[Maki]

We recently were charged a return check fee for 2 checks totaling $66.00 dollars..my wife is a SEIU employee, she has direct deposit..the funds were held by WAMU for 2days and also hold the checks transfers money from her savings and is charged another 25.oo dollars to pay both checks as a transfer fee. Totaling $91.00 dollars for 2 checks that totaled a$125.00 dollars..they are ripping us a new one..Organize something out in the IE in Riverside County California. WAMU takes advantage of SEIU direct deposits. If you get your check directly you can have funds on that same day..if u direct deposit the Bank will make you wait an extra day to receive your funds. So if you get paid on the 1st your money will not be available until the 2nd. Why direct deposit with WAMU? There is no advantage.

[Jim]

The problem sounds like it's with the SEIU. I find socialism more 'toxic' to our country and yet people want to believe it will solve their problem. When faced with a challenge, look for a way not a way out. Protests are not a solution to the problem.