Dump Your Big Bank Says Huffington
Arianna Huffington has an advice for you: dump your big bank for a small, community bank.
Speaking with the host of CNN’s John King USA on Wednesday, Huffington had a soap box to tell the American people that they can take action for themselves and their communities during these times of financial stresses by moving their money from the big banks to credit unions and smaller banks that are more likely to invest in them.
“The truth is that when you move to a bank that is much more likely to be waiting for you, in your interest, not imposing all these hidden fees that so many banks are imposing, you are supporting yourself, your family, and you’re also supporting your community,” Huffington told CNN.
“The big banks got billions of dollars in bailouts, but they are cutting lending. Big banks cut lending by $100 million already. One of the reasons why they got the bailout was to lend and help create jobs,” Huffington explained.
During the interview, the show host asked Huffington if she and her company would move their money to a smaller bank, Huffington responded saying that she already banks with a smaller bank and that many of her friends are moving their money from big banks to community banks.
Banks have gotten away with charging billions of dollars in fees to their costumers. With the new Federal rules on the banking industry, banks will have to get permission from customers about the overdraft protection on their checking accounts. Until recently, banks would slap customers with overdraft fees if the customer did not have enough money to cover a transaction. By covering the transaction, the banks gave themselves permission to charge customers.
Huffington believes that big banks have gotten away with hidden fees that work against the customers instead of help them be financially successful.
Already some $5 billion have been moved from big banks to smaller banks, according to Huffington. The state governments of Massachusetts and New Mexico are also looking to save money by perhaps banking with smaller banks, she told CNN.
The show’s host asked Huffington if she thought “getting back” at banks by asking Americans to switch to smaller banks would hurt Wall Street and their investments.
“It’s not about revenge,” Huffington answered. “It’s about families knowing what is in their interest.”
Huffington argued that Americans have a right to end the “abusive relationship” they have with their banks and go for a “healthier relationship” with banks that are more likely to invest in small businesses, their communities and help create jobs.
You can see Huffington’s interview here: