An astonishing ten percent of national bank consumers switched from one bank to another financial institution, reports The Los Angeles Times. This number speaks to the effectiveness of the bank switching movement.
The reason behind the bank switching movement has mostly to do with bank fees. It used to be that the primary reason people switched banks was because of personal reasons; but the fees are the main reason now.
One big push in the switching movement was the "Bank Transfer Day" which took place last November.
Bank fees and monthly charges are often viewed as unwanted and onerous additional burdens faced by Atlanta consumers. They become particularly annoying for those going through a Chapter 13 bankruptcy.
Those people currently in Chapter 13 bankruptcies know about monthly payments very well. A Chapter 13 bankruptcy is characterized by the "repayment plan" that an individual has to follow. Usually this is for a period of time agreed to by a bankruptcy court.
In order to file for bankruptcy, you must first receive credit counseling from one of the agencies that has been approved by the United States Trustee's office. You can find a list of approved agencies by visiting the United States Trustee's office website here. Although you may be charged for their services, these agencies are required to provide free or low cost credit counseling if you can show that you are not able to pay.
Maybe the monthly fees might not mean a lot to a bank, but when someone is in the middle of a bankruptcy repayment plan or who is simply struggling with debt, it is a lot.
As such, it is a good thing that the bank switching movement and "Bank Transfer Day" are around.