After passively accepting ever-increasing mistreatment from big banks, activists, community groups and even some politicians are jumping aboard a broad, multi-stage “move your money” campaign designed to transfer bank deposits into community banks and credit unions.
The twin inspirations for this have been the Occupy Wall Street movement and its focus on the lords of finance, and Bank of America’s announcement of a $5 monthly debit card fee, charging customers to use their own money. The latter in particular has sparked a great deal of activity. A petition to Bank of America CEO Brian Moynihan asking him to reverse the decision has over 223,000 signatures on the site Change.org. And House Democrats have asked Attorney General Holder to begin an investigation into whether big banks violated antitrust laws by colluding with one another over increased fees after the implementation of swipe fee reform from Dodd-Frank.
But many are bypassing the idea of getting BofA or other banks to reverse its fees and moving directly to encouraging customers to move their money. Rep. Brad Miller (D-NC) introduced a bill that makes the process of moving money simpler, and bans all exit fees on the customer for transferring out of a bank. The idea is to fight gouging with competition, and to make the ability to move money frictionless.
This policy-level reform proposal can also help remind people that they have a choice in banking. And activists have picked up that mantle. A Facebook campaign has turned November 5 into bank transfer day.
Bank Transfer Day was started by a 27-year-old Los Angeles art-gallery owner, Kristen Christian. She says she’s not affiliated with the Occupy Wall Street protesters but that many organizers of those demonstrations had reached out to her to express support.
Christian chose Nov. 5 because of its association with 17th century British folk hero Guy Fawkes, who tried to blow up the House of Lords but was captured on that date in 1605. In an interview with the Village Voice, however, Christian and Occupy Wall Street leaders who discussed the effort to get Americans to move their money from large banks to small institutions emphasized that they weren’t trying to create a collapse of the financial system. ”I’ve been very careful to state that this is not … anarchy,” Christian told the Voice. “It’s shifting the money to a company people respect the practices of. It’s like, if you don’t like Walmart’s practices, shopping at a local grocery store instead.”
There’s no denying the populist appeal the movement has garnered: as of Sunday afternoon, about 14,000 Facebook users had RSVP’d to the event, and numerous other pages had been set up in support of the concept. But while plenty of people may like the idea of switching banks to avoid extra fees, moving the foundation of their financial life takes not only dedication but also time (a few weeks at minimum) and a fair amount of tedious paperwork.
The numbers have jumped since that article went to press: it’s now at 36,000 attendees. And that’s without any coordinated help from more established activist groups, which is on the way in the coming weeks. The time and paperwork aspect as a barrier to entry is the problem Miller is trying to solve, but I have a feeling there’s a certain determination behind the frustration that inspired and energized this effort.
And it’s not just individuals who are moving their money; it’s city and county governments, and large organizations with big bank accounts:
In San Jose on Wednesday, unhappy customers were striking back at bank bottom lines.
Standing near the altar of the Most Holy Trinity Catholic Church, Father Eduardo Samaniego announced that the East Side parish is moving its $3 million account with Bank of America, where the church has done business for at least 20 years, to a community credit union.
“We are in a holy place to do holy work,” the Jesuit priest told 17 others members affiliated with People Acting In Community Together who stood alongside him. Some held posters that read “Keep Families In Their Homes” or “Stop Corporate Greed,” and several made similar announcements about divesting their own personal bank accounts from big banks involved in foreclosures into community banks or credit unions that were not.
San Jose has been ground zero for these efforts. The city moved nearly 1 billion out of Bank of America, specifically because of their poor track record on foreclosures. The county is poised to follow suit.
The Move Your Money project didn’t totally take off when Arianna Huffington established it after the financial crisis. It’s starting to have a revival.
Now if we can only get politicians to refuse to accept bank money, too…




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As in “fungible“
Oh yes, for all of you just now catching up, I have not used a nationally charted commericial bank since 1997. Update: Wait check that, BoA wanted to give $75 to open a no fee checking account (before the crash). I was like sure, I’ll take your money! And I did, and I never used them other than to withdrawal my money when it matured. Thanks BoA! Who says there’s no free lunch!
How hard is all this to figure out anyway? Can’t you tell you are walking into a den of wolves in your local BoA lobby? You can’t sense it in the air?
No wonder everything is fucked.
Some years ago, our business opened an account with a local bank, which was gobbled up by a regional bank which, in turn, was swallowed by B of A. So we moved the money to another local bank, and the same thing happened again.
Our personal accounts are with local credit unions, which are a better alternative unless you’re in the habit of using your ATM frequently, which we aren’t.
Believe it or not, this is actually a risk. If this creates a run on a distressed Big Bank *cough* BofA *cough*, it’s not going to matter where the money goes. It all comes from BofA, against their books. Depositors money is the hardest money the bank can have and the withdrawals will go directly against the banks market cap.
$1B in money movement might be enough to sink BofA, though you can be sure their friends in Washington will try to reduce capital requirements or inject capital to cover “this temporary cash flow issue”.
It’s having a local impact, the Credit Union in town has been jammed all week and the teller says they’ve opened more new accounts in the last month than they did all last year.
Boxturtle (As an added benefit, they’re really working on getting that money loaned out locally)
I haven’t been with them since 1982 when they cheated me out of a $7 bounced check fee. I have received at least $500 of junk mail from them since and I always click on their ads hoping it raises their costs. People who bank with them are trusting a thief with their money. They rob their own customers.
I transferred my checking account from TCF to a credit union about 20 months ago after TCF announced it would start charging $10 a month to have an account unless you have at least $2,500 in your account at all times or direct deposit. The credit union I use is less convenient, but you can withdraw money at an ATM system for free six times a month, which are conveniently located at 7-11 stores. No, there aren’t as many branches, but I can do what I need to do, and I am never charged a fee.
Targeting 1 bank will be much more effective – divide and conquer. If we can do real harm to 1 bank and scare the crap out of the others, we will have serious leverage. The demand? 1) Not allow banks to have any contact of any type with the political process 2) Enforce this by hiring thousands of OWS supporters and people who lost their jobs at the target bank to monitor the bankers and 3) Pay for it with a financial transaction tax and a windfall profits tax on all bank profits since the crash/bailout. 4) Investigate and prosecute ‘em. Happy days are here again.
Pick on BoA, they are the sickly Wildebeast in the herd anyway, well, it’s a toss up betwen them and CitiJoke.
In 1982, $7 was a lot for a fee, I guess. I have known of people literally getting socked for hundreds of dollars due to a single bounced check, with fee creating fee creating fee until they all snowball into a ridiculous amount for a trivial infraction. Absolute scam-nation.
I used to use a credit union too. I had gotten my first credit card through them and it had no fee and an attractive rate. What I couldn’t figure out was what happened some years later when I received a letter saying my CC account had been sold off to a third party private entity. I thought a contract was sacred huh? Only if you are in the oligarchy I guess. Like it or lump it. Here are the new terms. They were mostly the same, but I had made a late payment (ONMG!) once when I was near my credit limit, so they assessed not only a late fee, but lowered my credit limit below my ADB! I had to threaten them with the FTC and SAG and RICO Act, and they refunded my overlimit fee and late fee. They have been pretty good to me since.
I agree, BofA is the easy pick. Maybe FDL can do a poll.
Already have all my bank accounts at my credit union, and wanted to emphasize a piece of info on the refi paperwork I’m filing this morning on my second.
It’s #3 (below) that makes me love credit unions. They’re not in the ‘investment bank’ business, so won’t turn my loan into a microscopic piece of an over-rated tranche of a criminally-assembled mortgage-backed security.
The last of 23 pages of forms is the “Servicing Disclosure Statement”, the RESPA Servicing form from elliemae.com(?). It has three check boxes, for 1) We may assign, sell or trade servicing on your loan, 2) We don’t service these types of loans, and intend to assign, sell or trade… AND 3) The loan…will be serviced at this financial institution and we do NOT intend to sell, transfer, or assign…
And as soon as I pay off my BofA card, that’s all for the former Bank of Italy, too.
The best for me was when our whole family moved our money out of a Major bank in Milwaukee and told them we were moving it because they supported now Gov. Walker, they said to our faces we didn’t support his campaign.
It was all over the papers, nationally and locally regarding their support. I believe they have lost a lot of account over the last year. The problem now exists for them that their CEO before leaving took a hefty bonus before he left when this was happening. There not crumbling but they are feeling a lot of pain.
I was listening to a discussion about banks on our local pbs radio station. sorry, caught it midway. but what struck me is the continued conflation between the term “bank” as in commercial retail bank, and “bank” as in “investment bank”. Because they are one and the same now, banks don’t care about individual accounts any more. they don’t make money on them. so they really don’t care if you walk (this is one opinion that was aired). Both commentators agreed that banks are sitting on trillions of dollars and not moving it. Money needs to move to grow.
A meme that bugs me is when people compare banks to other retail businesses like Walmart or Macy’s. This is complete bullshit. Banks are a structural part of the economy and have a unique role within it. That is why they need to be regulated.
Not sure about the range, but at least in california, the credit unions are all on the ‘CO-OP’ network, and you can withdraw $ and transfer funds at the ATM machine in any 7-11 for free, no fees, nothing.
Most credit unions accept deposits for other credit unions, so even if an ATm for your CU isn’t nearby, one from another CU will be. And besides the odd check from granma, who uses ATMs for deposits anyway?
They’re making the 80′s look like the Decade of Charity.
We need to revive the Mr. Potter clip from Wonderful Life that was used in the first Move your Money campaign. If BofA does go down there will still be (hopefully) as many people who need banking services so most of the lost jobs should migrate to other banks and CU’s.
“Christian chose Nov. 5 because of its association with 17th century British folk hero Guy Fawkes, who tried to blow up the House of Lords but was captured on that date in 1605.”
Rubbish! Guy Fawkes was the villain,and his villainy is still celebrated every year in the UK when he is burned in effigy on bonfires all over the nation and fireworks are let off in celebration of his failure. Blowing up monarchs and elected parliaments is frowned on in the UK.
But you can appreciate the populist aspect of that behavior, no?
My husband and I have done business with credit unions for the last 20 years, first in California and now in Colorado. We use the Co op network for fee-free withdrawals and deposits. They did sell off their credit card business though.
Response to Rainborowe
Quote: Rubbish! Guy Fawkes was the villain,and his villainy is still celebrated every year in the UK when he is burned in effigy on bonfires all over the nation and fireworks are let off in celebration of his failure. Blowing up monarchs and elected parliaments is frowned on in the UK.
Hah! Not the way I remember it, having grown up there in the “somewhat” less monarchist north.
Seems to me the populace at large appreciated his effort! The burning in effigy bit was more in the nature of, as it were, a loving, appreciative “roast”.