It is clear to me from reading public reaction to arguments made in the Supreme Court this week on the constitutionality of the new healthcare law, that many people do not understand the concept of insurance.
Insurance is a means for a group of people to share the financial burden from losses that are unpredictable for the individual members, but predictable for the group as a whole. All members of the group contribute to a pool of money that is used to pay for individual losses when the need arises. Insurance is not a means for getting other people, corporations, or governments outside of the group to pay for losses. It is the members of the group that pay for losses and share in the benefits.
Insurance agreements work best when the loss events are truly random occurrences for individuals, but have well known probabilities so that the loss rate for a large population is a known quantity. I cannot know for certain if my house will be struck by lightening this year, but I do know that it is a certainty that someone's house in my community will be struck by lightening. If everyone contributes a small amount to an insurance pool so that the total equals the expected communal cost of lightning strikes, then those that do experience lightening strikes will not suffer a catastrophic loss. Not knowing who among the group will suffer a loss that is almost certain to occur, motivates everyone to contribute to the insurance pool.
Unpredictability is what makes an insurance contract possible. Whenever loss events become predictable, the entire concept breaks down. There are two ways that predictability can enter the system.
•People's behavior: The likelihood of an auto accident is partly random and partly the result of a driver's skill and tolerance for risk. Because these traits tend to correlate with demographics, market pressures arise for insurance pools to either exclude, or demand higher payments from people who fit certain demographic profiles. As a result, teenage boys pay more for auto insurance than middle-aged moms. A person with a history of traffic infractions and accidents might not be able to purchase auto insurance. Even though in the auto insurance market people are treated differently solely because of age, gender, and prior history, these pricing practices are not considered discriminatory.
• Past events: Obviously you cannot insure the past or else no one would contribute to the insurance pool for the future. Unlike the future, the past is entirely predictable because it has happened. No state would sell lottery tickets after the drawing. No bookie would accept bets on a football game after it has been played. No auto insurance company will sell a policy to someone after that person crashed. If this were allowed all these businesses would be broke in a matter of weeks.
I feel like I am stating the obvious, but many people in the healthcare debate do not understand these points. My people are outraged that the new law forces everyone to buy health insurance, and at the same time support the provision in the law that forbids insurance companies from denying coverage to people with pre-existing conditions. But if no one bought health insurance until it was needed, no pool of money would exist to pay for claims. The insurance model would breakdown quickly and no one would have insurance. The belief that it is possible to have universal healthcare coverage without a universal mandate to contribute is completely irrational.
In fact, without the new healthcare law the insurance model will breakdown in the near future. Too much concerning an individual's need for healthcare is predictable. Age and prior history are big factors in predicting healthcare costs for an individual, and just like for auto insurance, market pressures have arisen to exclude older and sicker individuals from insurance pools, either by barring them or pricing the insurance out of reach. But, unlike auto insurance, for which most states mandate coverage in order to drive, there has not been a health insurance mandate, so there is little incentive for the young and healthy to contribute to insurance pools that pay the cost of care for the aged and ill. Financing the healthcare system through a patchwork of private insurance plans simply isn't working because the predictability of the need for healthcare undermines the entire concept of insurance.
Opponents of the new healthcare law argue that mandated health insurance is different from mandated auto insurance because people can choose not to own or operate motor vehicles. Therefore it is possible to opt out of paying for auto insurance. But the irony is that as a consequence of our mortality, the need for healthcare is truly universal. Even though many people would prefer not to pay for health insurance and to opt out of the healthcare system, that choice is not possible. Almost everyone will need healthcare at some point in his or her life and federal law already requires that emergency rooms treat all patients. That means that healthcare is already socialized.
Unfortunately the emergency room is the most expensive and inefficient place to provide healthcare, and many uninsured are using emergency room services and not paying because they have no other choice. This practice further drives up insurance costs for those that do pay and prices more people out of the health insurance market. The current system is spiraling out of control. Eventually when so few people are insured that the healthcare system can no longer cover its overhead, it will experience a financial crisis with an unpredictable outcome.
The demand for healthcare is universal and government works best when addressing universal needs. The ideologues who denounce all government interventions ignore the fact that without government action there would be no Interstate highway system, no universal electrical service, no universal phone service, no Internet, no national defense, and the list goes on. Private enterprise could not have provided these services that we regard as essential to the modern functioning of our society. The loud voices denouncing all government intervention in the marketplace ignore reams of facts. Conservatives may long for a simpler past, but I doubt many of them would be willing to go back and live in the past, and give up all the modern conveniences they take for granted today.
Obama's affordable healthcare law is not a perfect solution, but first attempts to solve complex problems always need modifications. Scrapping the law and doing nothing leaves in place a healthcare financing system that is unsustainable. It is time to stop the shouting and have a serious, informed, and reasonable discussion on how to move forward with our nation's healthcare policies. Unfortunately in our current political climate, characterized by fear mongering, rigid ideologies, insatiable greed, and blind irrationality, I don't see that happening.
Friday, March 30, 2012
Saturday, February 25, 2012
My Troubles with the U. S. Postal Service
The troubles of the U. S. Postal Service have been in the news over the past year. Unfortunately, its financial situation continues to deteriorate with no conceivable path to solvency in sight. This saddens me because I have always liked the business of the post office—the delivery of actual words on paper—typed, printed or written by hand—to any person in the United States. But, modern technology has rendered much of what the Postal Service does obsolete, and in performing the tasks for which it still has a purpose it functions badly. In fact, “self-destructive” might be a better description of its methodology.
To be fair, the Postal Service is in a position that is by definition untenable. It is suppose to function as a private company without the need for government subsidies. In principle, that would require it to keep its expenses in balance with its revenues. Of course any private corporation with falling revenues would be forced to slash expenses or face bankruptcy. The Postal Service cannot undertake either action without Congressional approval. It cannot cut services without Congress intervening at the behest of constituents who continue to demand every service that they have been accustomed to in the past. Nor can the Postal Service simply cease to exist, as is the case with most insolvent corporations.
But what does the Postal Service do today? Currently, I receive three types of mail:
• Junk Mail: The economics of the modern junk mail phenomena perplex me. It must cost a great deal of money to produce, print, and ship the myriad catalogs, circulars, and direct mail solicitations that go directly from my mailbox to the recycling bin. I have found that if I make a single purchase from a vendor, no matter how small, I will receive mail for years to come, even if I never buy another thing. How can they make money from that practice? Even I want to buy again, I have found that a Google search is faster than getting up from my desk and searching for a printed catalog. Therefore, there is no reason to keep a printed catalog, which I use to do in the past. When will the advertisers catch on to the amount of waste involved with junk mail?
• Invoices: Companies plead with me not to have paper invoices sent. Most vendors prefer that I receive statements via email and pay the bill with an electronic check. Evidently billing departments are more conscious of the cost of paper than marketing departments. However, I still receive and pay most of my bills the old-fashioned way, with paper statements, checks, and first-class stamps. I do this so that my wife can see how our money is being spent and a private email account would hide that information from her. I have heard of couples opening up an email account with a shared password just for the purpose of receiving and paying bills. That is not a bad practice to consider.
• Periodicals: I still like to read printed magazines. Subscriptions have become incredibly cheap as publishers struggle to attract eyeballs just so that they can charge for advertising. I think publishers have given up getting readers to pay for the actual cost to produce and mail magazines. I might be old fashioned in regards to periodicals because the paper format is probably on the way out.
But, it’s only in this last category of mail—periodicals—that I find enjoyable to receive. However when it comes to the delivery of periodicals the Postal System is at its worse. I speak both as a receiver and sender of periodical mail. I routinely receive weekly magazines two to four weeks late. I’m certain that it is not because of the publisher.
I also work for a publisher—The Correspondence Chess League of America (CCLA)—editing and mailing a periodical—The Chess Correspondent. That job requires me to navigate the byzantine practices of the Postal Service’s system for Periodical Mail.
The price for mailing a periodical is computed using a multi-part, multi-page form 3541, laden with cryptic jargon and acronyms, which is so complex that no one at my local postal office understands it. When I walk into the post office, I am not a customer that the postal clerks want to see. My arrival means that one of the clerks will have to take money from me in payment for a service that they are unsure of how to price. In the bureaucratic, CYA (cover your ass), mentality of employees of the Postal Service, it is better not to have customers than risk being held responsible for messing up completion of a form.
The clerks all complain that they have not been “properly trained” in filling out the periodical mailing form. You would think learning the form would be a routine part of the job. However, the training for periodical mail involves spending a week at a special school in Oklahoma. As a result it is not uncommon for the clerks to procrastinate on processing my periodical mailings.
In mid-December, I mailed an issue of The Chess Correspondent that vanished for nearly four weeks. It showed up in no one’s mailbox, including my own mailbox just 3 miles away. (I always send a copy to myself to make sure they process my mailing.) Only after I returned, spoke directly to the postmaster, and asked for my money back, did issues start being delivered.
I find it ironic, that my post office would rather not process my periodical, which is about playing chess using the mail, a practice that appears to be about as old as the game itself. While much of modern correspondence chess has migrated to the Internet, there are still many correspondence players who continue to send their moves on postcards through the mail system. Many players enjoy receiving hand written postcards from distant opponents, and believe or not, prefer the slower pace of a correspondence game played in the manner that it was for centuries before the Internet— using regular mail.
Companies in trouble should be happy to see paying customers. Even better, I am a customer with a publication that promotes the use of the U. S. Postal Service. Instead the postmaster told me when I complained that forced cutbacks have decreased the resources that he can allocate for periodical mail service.
In the mean time I’m encouraging more of my readership to subscribe electronically. Like most periodicals, we publish dated material that needs to be read by a certain deadline. Given the delivery problems, it would be cheaper and easier for our organization to not have to deal with the Postal Service. For a discount on membership fees, The Chess Correspondent can be delivered in PDF format via email. Transit times are measured in seconds, not weeks. Better still, if you lose it I can easily send you another one. That is something I can’t do for the many members still waiting for their paper copy, nearly three months later.
To be fair, the Postal Service is in a position that is by definition untenable. It is suppose to function as a private company without the need for government subsidies. In principle, that would require it to keep its expenses in balance with its revenues. Of course any private corporation with falling revenues would be forced to slash expenses or face bankruptcy. The Postal Service cannot undertake either action without Congressional approval. It cannot cut services without Congress intervening at the behest of constituents who continue to demand every service that they have been accustomed to in the past. Nor can the Postal Service simply cease to exist, as is the case with most insolvent corporations.
But what does the Postal Service do today? Currently, I receive three types of mail:
• Junk Mail: The economics of the modern junk mail phenomena perplex me. It must cost a great deal of money to produce, print, and ship the myriad catalogs, circulars, and direct mail solicitations that go directly from my mailbox to the recycling bin. I have found that if I make a single purchase from a vendor, no matter how small, I will receive mail for years to come, even if I never buy another thing. How can they make money from that practice? Even I want to buy again, I have found that a Google search is faster than getting up from my desk and searching for a printed catalog. Therefore, there is no reason to keep a printed catalog, which I use to do in the past. When will the advertisers catch on to the amount of waste involved with junk mail?
• Invoices: Companies plead with me not to have paper invoices sent. Most vendors prefer that I receive statements via email and pay the bill with an electronic check. Evidently billing departments are more conscious of the cost of paper than marketing departments. However, I still receive and pay most of my bills the old-fashioned way, with paper statements, checks, and first-class stamps. I do this so that my wife can see how our money is being spent and a private email account would hide that information from her. I have heard of couples opening up an email account with a shared password just for the purpose of receiving and paying bills. That is not a bad practice to consider.
• Periodicals: I still like to read printed magazines. Subscriptions have become incredibly cheap as publishers struggle to attract eyeballs just so that they can charge for advertising. I think publishers have given up getting readers to pay for the actual cost to produce and mail magazines. I might be old fashioned in regards to periodicals because the paper format is probably on the way out.
But, it’s only in this last category of mail—periodicals—that I find enjoyable to receive. However when it comes to the delivery of periodicals the Postal System is at its worse. I speak both as a receiver and sender of periodical mail. I routinely receive weekly magazines two to four weeks late. I’m certain that it is not because of the publisher.
I also work for a publisher—The Correspondence Chess League of America (CCLA)—editing and mailing a periodical—The Chess Correspondent. That job requires me to navigate the byzantine practices of the Postal Service’s system for Periodical Mail.
The price for mailing a periodical is computed using a multi-part, multi-page form 3541, laden with cryptic jargon and acronyms, which is so complex that no one at my local postal office understands it. When I walk into the post office, I am not a customer that the postal clerks want to see. My arrival means that one of the clerks will have to take money from me in payment for a service that they are unsure of how to price. In the bureaucratic, CYA (cover your ass), mentality of employees of the Postal Service, it is better not to have customers than risk being held responsible for messing up completion of a form.
The clerks all complain that they have not been “properly trained” in filling out the periodical mailing form. You would think learning the form would be a routine part of the job. However, the training for periodical mail involves spending a week at a special school in Oklahoma. As a result it is not uncommon for the clerks to procrastinate on processing my periodical mailings.
In mid-December, I mailed an issue of The Chess Correspondent that vanished for nearly four weeks. It showed up in no one’s mailbox, including my own mailbox just 3 miles away. (I always send a copy to myself to make sure they process my mailing.) Only after I returned, spoke directly to the postmaster, and asked for my money back, did issues start being delivered.
I find it ironic, that my post office would rather not process my periodical, which is about playing chess using the mail, a practice that appears to be about as old as the game itself. While much of modern correspondence chess has migrated to the Internet, there are still many correspondence players who continue to send their moves on postcards through the mail system. Many players enjoy receiving hand written postcards from distant opponents, and believe or not, prefer the slower pace of a correspondence game played in the manner that it was for centuries before the Internet— using regular mail.
Companies in trouble should be happy to see paying customers. Even better, I am a customer with a publication that promotes the use of the U. S. Postal Service. Instead the postmaster told me when I complained that forced cutbacks have decreased the resources that he can allocate for periodical mail service.
In the mean time I’m encouraging more of my readership to subscribe electronically. Like most periodicals, we publish dated material that needs to be read by a certain deadline. Given the delivery problems, it would be cheaper and easier for our organization to not have to deal with the Postal Service. For a discount on membership fees, The Chess Correspondent can be delivered in PDF format via email. Transit times are measured in seconds, not weeks. Better still, if you lose it I can easily send you another one. That is something I can’t do for the many members still waiting for their paper copy, nearly three months later.
Tuesday, January 31, 2012
Eric Cantor’s Misunderstanding of Compromise
The 60 Minutes interview with House majority leader Eric Cantor broadcast on January 1, 2012 had a number of moments that revealed the causes of the current dysfunction in Congress. One particularly revealing response occurred when Leslie Stahl asked him about compromise. He said:
"Comprising principles, you don't want to ask anybody to do that. That's who they are as their core being."
"Comprising principles, you don't want to ask anybody to do that. That's who they are as their core being."
Wednesday, August 31, 2011
The Law of Unintended Consequences: BG&E Tree Trimming Policies
Today marks day four and counting without power in my house. Hurricane Irene passed through early Sunday morning and tore up the area’s electrical grid. Initial reports were that over 850,000 customers were without power in the immediate aftermath of the storm. I’m not sure how customers are counted. Is a customer just the account holder, or the actual number of people using that account? In our household we have one account holder, but a total of five persons living in the house. If on average each account holder represents about three electricity users than 3 x 850,000 or 2.55 million people are without electricity. That is almost half of Maryland’s 5.5 million people, and there is no firm timetable for complete restoration of services.
The primary causes of the power outages are fallen trees and tree limbs. For the most part the electric poles and wires withstood the winds. But the wires cannot withstand trees being dropped on them. Maryland, including Baltimore County and City (where I live and work) is heavily forested, so almost all power lines have nearby trees. Several years ago Baltimore Gas & Electric (BG&E) decided to be “proactive” about the hazards that trees pose and sent crews out to trim back tree branches along their right-of-ways. However, as is often the case, the corporate policy makers don’t think through the real-world consequences of their policies. On my property, BG&E’s policies have increased, rather than reduced, the hazards to their power lines. I’m certain that my property is not unique.
The back edge of my property is along a BG&E right-of-way for power lines that feed many of the houses in my neighborhood. Several years ago, I returned home to find BG&E workers high up in the large mature oak trees at the end of my yard, cutting off the branches jutting out in the direction of the power lines. I asked them immediately to leave which they did, but it was too late. The damage had been done.
The tree trimmers insisted that lopping off branches would not harm the trees. That might be true if the trimmers took proper precautions, but it was clear to me that was not the case. The workers simply moved along the right-of-way, from one tree to the next, and did not stop and clean their cutting tools after each tree. There is a fungus in the area that attacks oak trees, and I had already lost several large oak trees in my yard to the fungus. I had to have the remnants of these trees cut down and removed, which is very expensive. A sure way to spread the fungus would be to do exactly what these tree trimmers were doing.
I’m sure that when trimming thousands of trees it would be tedious and time consuming to thoroughly clean cutting tools after every tree. I’m sure that my dentist finds it tedious and time consuming to clean dental instruments after every patient. However, not doing so is guaranteed to spread disease. The large oak trees, clearly many decades old, that BG&E trimmed, caught the fungus and died within a couple of years.
The trees are far from my house and no threat to anything but BG&E’s power lines. I have left them up because it would very expensive for me to have them removed (thousands of dollars), and they were perfectly healthy trees before BG&E mangled them. Through the years the wind and rain have stripped off most of the branches and bark.
Early this summer I called BG&E to explain that the trees are likely to fall on their power lines and recommended that a crew be sent out to remove them. The person answering the phone asked if the trees were touching the power lines. I said no, but I explained that when the trees do fall the power lines would be brought down. The BG&E employee told me that the trees have to be touching and putting tension on the wires before action would be taken. That is BG&E’s policy for dead trees that pose a serious threat to power lines. In contrast, when these same trees were alive and healthy and little threat to the power lines, BG&E had work crews out hacking away at them.
The morning after the storm the first thing I looked at outside were the dead trees. They withstood Irene’s onslaught and are still standing. It will not be Irene, but some other storm in the future that will eventually take them and BG&E’s power lines down. However, thousands of trees throughout the area did fall. I can’t help but wonder how many of those fallen trees were victims not of the storm, but of BG&E’s inane tree trimming program. I also wonder if the tree trimming actually prevented any power outages. With so many people without power due to fallen trees, it is hard for me to imagine that BG&E’s tree trimming programing accomplished much of anything.
Trees are an important part of the environment in Maryland. Even if it were not prohibitively expensive, it would still be undesirable to remove every tree that threatens a power line. However, healthy trees are far less of a threat than dead trees. If BG&E wants to be better prepared for the next storm, they should focus removing the dead trees along their right-of-ways instead of creating more dead trees through careless tree trimming practices.
The primary causes of the power outages are fallen trees and tree limbs. For the most part the electric poles and wires withstood the winds. But the wires cannot withstand trees being dropped on them. Maryland, including Baltimore County and City (where I live and work) is heavily forested, so almost all power lines have nearby trees. Several years ago Baltimore Gas & Electric (BG&E) decided to be “proactive” about the hazards that trees pose and sent crews out to trim back tree branches along their right-of-ways. However, as is often the case, the corporate policy makers don’t think through the real-world consequences of their policies. On my property, BG&E’s policies have increased, rather than reduced, the hazards to their power lines. I’m certain that my property is not unique.
The back edge of my property is along a BG&E right-of-way for power lines that feed many of the houses in my neighborhood. Several years ago, I returned home to find BG&E workers high up in the large mature oak trees at the end of my yard, cutting off the branches jutting out in the direction of the power lines. I asked them immediately to leave which they did, but it was too late. The damage had been done.
The tree trimmers insisted that lopping off branches would not harm the trees. That might be true if the trimmers took proper precautions, but it was clear to me that was not the case. The workers simply moved along the right-of-way, from one tree to the next, and did not stop and clean their cutting tools after each tree. There is a fungus in the area that attacks oak trees, and I had already lost several large oak trees in my yard to the fungus. I had to have the remnants of these trees cut down and removed, which is very expensive. A sure way to spread the fungus would be to do exactly what these tree trimmers were doing.
I’m sure that when trimming thousands of trees it would be tedious and time consuming to thoroughly clean cutting tools after every tree. I’m sure that my dentist finds it tedious and time consuming to clean dental instruments after every patient. However, not doing so is guaranteed to spread disease. The large oak trees, clearly many decades old, that BG&E trimmed, caught the fungus and died within a couple of years.
The trees are far from my house and no threat to anything but BG&E’s power lines. I have left them up because it would very expensive for me to have them removed (thousands of dollars), and they were perfectly healthy trees before BG&E mangled them. Through the years the wind and rain have stripped off most of the branches and bark.
Early this summer I called BG&E to explain that the trees are likely to fall on their power lines and recommended that a crew be sent out to remove them. The person answering the phone asked if the trees were touching the power lines. I said no, but I explained that when the trees do fall the power lines would be brought down. The BG&E employee told me that the trees have to be touching and putting tension on the wires before action would be taken. That is BG&E’s policy for dead trees that pose a serious threat to power lines. In contrast, when these same trees were alive and healthy and little threat to the power lines, BG&E had work crews out hacking away at them.
The morning after the storm the first thing I looked at outside were the dead trees. They withstood Irene’s onslaught and are still standing. It will not be Irene, but some other storm in the future that will eventually take them and BG&E’s power lines down. However, thousands of trees throughout the area did fall. I can’t help but wonder how many of those fallen trees were victims not of the storm, but of BG&E’s inane tree trimming program. I also wonder if the tree trimming actually prevented any power outages. With so many people without power due to fallen trees, it is hard for me to imagine that BG&E’s tree trimming programing accomplished much of anything.
Trees are an important part of the environment in Maryland. Even if it were not prohibitively expensive, it would still be undesirable to remove every tree that threatens a power line. However, healthy trees are far less of a threat than dead trees. If BG&E wants to be better prepared for the next storm, they should focus removing the dead trees along their right-of-ways instead of creating more dead trees through careless tree trimming practices.
Sunday, July 17, 2011
My Suzuki Verona: Bait and Switch Warranty Repairs
One year ago I purchased a used 2005 Suzuki Verona with about 40,000 miles on the odometer. Because of the low mileage and less than seven-year age of the car, many of its parts remained under the power train warranty. However, I have discovered that getting Suzuki to perform a needed warranty repair is extremely difficult, very expensive, and has left me wondering if Suzuki is manipulating their customers in order to cover up serious safety issues arising from design flaws.
A risk in buying any used car is being saddled with someone else's lemon. My Verona is certainly a lemon. I understand now why Suzuki stopped making Veronas. The car has been nothing but trouble since I bought it. Over the past year, there has not been a period of longer than two weeks without the check engine light coming on and staying on for several days at a time. During those intermittent periods of engine trouble, the car hesitated when I stepped on the gas and then either suddenly accelerated or stalled. Needless to say it was challenging and dangerous to drive.
However, diagnosing and fixing the problem proved difficult. My mechanic did the obvious-replaced the spark plugs, located and replaced a defective ignition coil, changed an O2 sensor-but nothing solved the underlying problem of hesitation followed by either a sudden acceleration or a stall. My mechanic eventually realized that the problem was with the on board computer that controlled the operation of the engine. Every time the check engine light came on the diagnostic codes from the computer were different and contradictory.
His recommendation to replace the computer was both good news and bad news. The bad news: it is a $1000 part. The good news: it is still under warranty. However, my mechanic cannot perform warranty repairs, those can only be done by Suzuki dealers. My trip to a Suzuki dealer turned into an expensive and time-consuming odyssey that raised troubling questions about the company and its products.
The closest Suzuki dealer to my house in Reisterstown, Maryland, is Adams Suzuki, located in Fallston, Maryland, about 40 miles away. After a hair-raising drive-the car stalled at most of the red lights along the way-I arrived and explained that my mechanic had recommended a new computer installation to solve the engine problems. The service manager received the car and told me that I would be called after they did their own diagnostics.
The next day I was told that the wiring harness needed to be replaced. This is an expensive part ($597.15) and labor-intensive repair ($227.50), for a total of $876.38 after taxes and waste disposal fees were included, and the warranty does not cover the parts and labor. The engine and computer are warranted, but conveniently for Suzuki, not the wires connecting them. The dealer said the computer worked properly. I asked the service manager how she knew that the computer worked. She said that the computer would not generate diagnostic codes at all if it didn't work, an assertion my mechanic says is false. However, the dealership provided me with no other option but to replace the wiring harness. I reluctantly agreed, although I said that if a wiring harness replacement did not fix the car's problem I would expect my money back.
In the mean time I rented a car so that I could commute to work. Two days later on a Thursday, the dealer called me back to say that Suzuki had sent them the wrong wiring harness and that the repair would be delayed another two days. I said that I would be out of town for the next week, and I would pick up the car on the next Thursday morning (one week later).
The following Thursday morning I called, only to find out the repaired had just been started. The car would be ready Thursday afternoon, which forced me to spend more money on a rental car so that I could get to work. I asked for a 10% discount on the repair to offset the added expense. The service manager's reply was no. She said that it was not her fault that Suzuki shipped the wrong part the week before.
I picked up my car that Thursday evening and paid the $876.38. The car continued to hesitate and then lurch forward, although no stalls occurred. The check engine light came back on before I arrived home. I returned to complain. This time the computer diagnostic codes indicated a vacuum leak that the dealership claimed to have repaired about 30 minutes later. I again asked about the reliability of the computer, and I was assured that it worked. I was not charged for the repair because the manager said moving parts around during the wiring harness repair could have caused the leak.
I drove away and traveled about 3 miles before the check engine light came on again. I returned and this time the computer diagnostic codes indicated a problem with an O2 sensor, a part that I knew had been recently replaced. This time I spoke directly to the service technician who told me that O2 sensors fail frequently on Veronas, even relatively new ones. But, when I asked what was wrong with the O2 sensor, he discovered that the computer codes kept changing. First the O2 sensor was completely dead, then it was good, then it was sensing a "lean" mixture, then a "rich" mixture. I argued that a computer spitting out bad codes was a more likely explanation for the problem than an O2 sensor cycling between all four possible states.
But, the service technician told me that Suzuki's instructions were not to replace computers, even when that appeared to be problem, but instead to replace wiring harnesses. I asked why Suzuki was so convinced that the wiring harness was bad. He explained that the original wiring harness had design flaws that caused the wires to corrode and form intermittent connections that could cause the same kind of problems as a malfunctioning computer.
The technician said that the service department would provide an estimate for a new O2 sensor. But, I said I wanted the computer replaced before I agreed to spend any more money. If the computer spits out bad codes, I could replace parts one at a time forever. After all, there are hundreds of possible diagnostic codes the computer can generate. Reluctantly, the dealership agreed to order a new computer and replace it under the warranty agreement.
I returned a fourth time when the new computer arrived to have it installed. I have not had any problems with the car since the computer was replaced. The O2 sensor appears to work fine. Needless to say the $876.38 I spent on the wiring harness repair has not been refunded. The dealership argues that it was still necessary, and since the car did not stall afterward, the new wiring harness resulted in some improvement.
However, the experience raises some deeply troubling questions about Suzuki. If the original wiring harness design is indeed defective, it should be recalled. There is no question my car was dangerous to drive given its propensity to either lurch forward or stall when pressing the gas pedal. It appears that rather than issue a recall, Suzuki is instructing its dealers to replace the wiring harness and bill the customer for the expense, before doing needed warranty repairs.
I would not have traveled to a dealer 40 miles away for a non-warranty repair. My mechanic could have replaced the wiring harness cheaper, faster, and closer to my house. I would not have had to make four round trips (320 miles total) to the dealer and spend a total of $235.55 on rental cars to get to work. But my mechanic correctly diagnosed the problem as a bad computer and recommended that I have it fixed under the warranty. Between the repairs, rental cars, and travel expenses, I spent over $1100 on what should have been a no-cost warranty repair.
The car definitely needed a new computer. I still don't know if the car needed a new wiring harness, but if Suzuki is correct that it did, that raises deeply troubling questions about the safety of Suzuki products and integrity of its management. If it did not need a new wiring harness I should get my money back.
The sequence of events leads me to believe that I was a victim of a bait and switch. I brought the car to a Suzuki dealer for a needed warranty repair. But, before Suzuki would honor the warranty, the company insisted on selling me an expensive non-warranty repair. If the wiring harness repair was necessary because of possible design flaws, the part should be recalled. Suzuki should not be insisting that customers pay for its replacement before agreeing to do necessary warranty repairs.
A risk in buying any used car is being saddled with someone else's lemon. My Verona is certainly a lemon. I understand now why Suzuki stopped making Veronas. The car has been nothing but trouble since I bought it. Over the past year, there has not been a period of longer than two weeks without the check engine light coming on and staying on for several days at a time. During those intermittent periods of engine trouble, the car hesitated when I stepped on the gas and then either suddenly accelerated or stalled. Needless to say it was challenging and dangerous to drive.
However, diagnosing and fixing the problem proved difficult. My mechanic did the obvious-replaced the spark plugs, located and replaced a defective ignition coil, changed an O2 sensor-but nothing solved the underlying problem of hesitation followed by either a sudden acceleration or a stall. My mechanic eventually realized that the problem was with the on board computer that controlled the operation of the engine. Every time the check engine light came on the diagnostic codes from the computer were different and contradictory.
His recommendation to replace the computer was both good news and bad news. The bad news: it is a $1000 part. The good news: it is still under warranty. However, my mechanic cannot perform warranty repairs, those can only be done by Suzuki dealers. My trip to a Suzuki dealer turned into an expensive and time-consuming odyssey that raised troubling questions about the company and its products.
The closest Suzuki dealer to my house in Reisterstown, Maryland, is Adams Suzuki, located in Fallston, Maryland, about 40 miles away. After a hair-raising drive-the car stalled at most of the red lights along the way-I arrived and explained that my mechanic had recommended a new computer installation to solve the engine problems. The service manager received the car and told me that I would be called after they did their own diagnostics.
The next day I was told that the wiring harness needed to be replaced. This is an expensive part ($597.15) and labor-intensive repair ($227.50), for a total of $876.38 after taxes and waste disposal fees were included, and the warranty does not cover the parts and labor. The engine and computer are warranted, but conveniently for Suzuki, not the wires connecting them. The dealer said the computer worked properly. I asked the service manager how she knew that the computer worked. She said that the computer would not generate diagnostic codes at all if it didn't work, an assertion my mechanic says is false. However, the dealership provided me with no other option but to replace the wiring harness. I reluctantly agreed, although I said that if a wiring harness replacement did not fix the car's problem I would expect my money back.
In the mean time I rented a car so that I could commute to work. Two days later on a Thursday, the dealer called me back to say that Suzuki had sent them the wrong wiring harness and that the repair would be delayed another two days. I said that I would be out of town for the next week, and I would pick up the car on the next Thursday morning (one week later).
The following Thursday morning I called, only to find out the repaired had just been started. The car would be ready Thursday afternoon, which forced me to spend more money on a rental car so that I could get to work. I asked for a 10% discount on the repair to offset the added expense. The service manager's reply was no. She said that it was not her fault that Suzuki shipped the wrong part the week before.
I picked up my car that Thursday evening and paid the $876.38. The car continued to hesitate and then lurch forward, although no stalls occurred. The check engine light came back on before I arrived home. I returned to complain. This time the computer diagnostic codes indicated a vacuum leak that the dealership claimed to have repaired about 30 minutes later. I again asked about the reliability of the computer, and I was assured that it worked. I was not charged for the repair because the manager said moving parts around during the wiring harness repair could have caused the leak.
I drove away and traveled about 3 miles before the check engine light came on again. I returned and this time the computer diagnostic codes indicated a problem with an O2 sensor, a part that I knew had been recently replaced. This time I spoke directly to the service technician who told me that O2 sensors fail frequently on Veronas, even relatively new ones. But, when I asked what was wrong with the O2 sensor, he discovered that the computer codes kept changing. First the O2 sensor was completely dead, then it was good, then it was sensing a "lean" mixture, then a "rich" mixture. I argued that a computer spitting out bad codes was a more likely explanation for the problem than an O2 sensor cycling between all four possible states.
But, the service technician told me that Suzuki's instructions were not to replace computers, even when that appeared to be problem, but instead to replace wiring harnesses. I asked why Suzuki was so convinced that the wiring harness was bad. He explained that the original wiring harness had design flaws that caused the wires to corrode and form intermittent connections that could cause the same kind of problems as a malfunctioning computer.
The technician said that the service department would provide an estimate for a new O2 sensor. But, I said I wanted the computer replaced before I agreed to spend any more money. If the computer spits out bad codes, I could replace parts one at a time forever. After all, there are hundreds of possible diagnostic codes the computer can generate. Reluctantly, the dealership agreed to order a new computer and replace it under the warranty agreement.
I returned a fourth time when the new computer arrived to have it installed. I have not had any problems with the car since the computer was replaced. The O2 sensor appears to work fine. Needless to say the $876.38 I spent on the wiring harness repair has not been refunded. The dealership argues that it was still necessary, and since the car did not stall afterward, the new wiring harness resulted in some improvement.
However, the experience raises some deeply troubling questions about Suzuki. If the original wiring harness design is indeed defective, it should be recalled. There is no question my car was dangerous to drive given its propensity to either lurch forward or stall when pressing the gas pedal. It appears that rather than issue a recall, Suzuki is instructing its dealers to replace the wiring harness and bill the customer for the expense, before doing needed warranty repairs.
I would not have traveled to a dealer 40 miles away for a non-warranty repair. My mechanic could have replaced the wiring harness cheaper, faster, and closer to my house. I would not have had to make four round trips (320 miles total) to the dealer and spend a total of $235.55 on rental cars to get to work. But my mechanic correctly diagnosed the problem as a bad computer and recommended that I have it fixed under the warranty. Between the repairs, rental cars, and travel expenses, I spent over $1100 on what should have been a no-cost warranty repair.
The car definitely needed a new computer. I still don't know if the car needed a new wiring harness, but if Suzuki is correct that it did, that raises deeply troubling questions about the safety of Suzuki products and integrity of its management. If it did not need a new wiring harness I should get my money back.
The sequence of events leads me to believe that I was a victim of a bait and switch. I brought the car to a Suzuki dealer for a needed warranty repair. But, before Suzuki would honor the warranty, the company insisted on selling me an expensive non-warranty repair. If the wiring harness repair was necessary because of possible design flaws, the part should be recalled. Suzuki should not be insisting that customers pay for its replacement before agreeing to do necessary warranty repairs.
Saturday, April 30, 2011
The Republican Party: In The Twilight Zone
The ability to assert two mutually exclusive statements, as both being true, has been a requirement in politics for some time. But the cognitive dissonance within the Republican Party has gone off into the twilight zone.
The Republicans have threatened to not raise the federal debt limit unless the Democrats agree to substantial cuts in spending. This is equivalent to threatening to end a hostage standoff with a nuclear weapon. Obviously the United States government cannot default on its debt obligations because the worldwide economic catastrophe that would result would make the 2007-08 financial crisis look insignificant in comparison. A threat that can never be executed isn’t much of a threat at all.
Actually, it’s interesting to track where the federal largess that the Republicans so bitterly complain about goes. A USA Today article on April 25 ranks states in order of government benefits received. Heavily Republican states that voted for McCain in the 2008 presidential election tend to rank high on this list, meaning that they receive more government benefits than most states. For example, West Virginia ranks number 2. Some followers that voted Republican, with their rankings in parenthesis, are Kentucky (8), Mississippi (11), Arkansas (12), Alabama (14), and Louisiana (17). Why are the Republicans in those states so opposed to the benefits that they receive? Maybe they should be careful what they wish for.
On that note, I wish Ayn Rand were alive and giving interviews on her economic and philosophical theories. She is a cult figure in the Republican Party, especially among the Tea Party wing, for her advocacy of unfettered capitalism and ethic of rational self-interest. A new movie has just been released based on her novel Atlas Shrugged in which the capitalists are the heroes.
Actually, Ayn Rand, a Russian Jew who emigrated to the United States at the age of 21, was a committed atheist who opposed all forms of religion. To her, valid knowledge arose only from sense perceptions and human reason. She rejected all claims of knowledge obtained outside of the senses, such as divine revelation. It’s hard to imagine her going very far in today’s political climate as a Republican or a Democrat.
Although, some Republicans simply ignore inconvenient historical facts about their heroes. Maybe Republican Congresswoman and Tea Party favorite Michele Bachmann could re-write Rand’s biography in the same way that she re-wrote American history in a recent speech. She stated in regards to the U. S. Constitution that: “the very founders that wrote those documents worked tirelessly until slavery was no more in the United States.” Actually, many of the founders, such as George Washington and Thomas Jefferson, owned slaves. Not until after the Civil War, nearly 100 years later and long after the founders were dead, was slavery abolished.
On the other hand, if Ayn Rand did endorse Republicans her religious views might not matter. The Reverend Franklin Graham in an interview with Christine Amanpour says that Donald Trump could become his “candidate of choice” for president because “the more you listen to him, the more you say to yourself, you know, may be the guy’s right.” This was said in the same interview that Graham questioned Obama’s Christian faith. There was no discussion of Trump’s faith. Franklin Graham has since been clarifying his comments. I would advise him not seek help from John Kyle’s press agent for issuing clarifications.
John Kyle stated on the Senate floor that “well over 90% of what Planned Parenthood does” relates to abortion. When called out on that obvious falsehood, his office released a statement that “his remark was not meant to be a factual statement.” I checked the definition of the noun “lie” at dictionary.com and found this definition: “a false statement made with deliberate intent to deceive; an intentional untruth; a falsehood.” In other words, according to John Kyle’s office his statement on the Senate floor was a lie. Evidently John Kyle must have realized this too because he clarified his clarification by stating that he “misspoke.” As to the earlier statement released by his office, he said: “"That was not me - that was my press person.”
The upcoming presidential contest should be a great event for comedy writers. Unfortunately it’s going to be a very bad contest for the electorate who will have to listen to all this nonsense.
The Republicans have threatened to not raise the federal debt limit unless the Democrats agree to substantial cuts in spending. This is equivalent to threatening to end a hostage standoff with a nuclear weapon. Obviously the United States government cannot default on its debt obligations because the worldwide economic catastrophe that would result would make the 2007-08 financial crisis look insignificant in comparison. A threat that can never be executed isn’t much of a threat at all.
Actually, it’s interesting to track where the federal largess that the Republicans so bitterly complain about goes. A USA Today article on April 25 ranks states in order of government benefits received. Heavily Republican states that voted for McCain in the 2008 presidential election tend to rank high on this list, meaning that they receive more government benefits than most states. For example, West Virginia ranks number 2. Some followers that voted Republican, with their rankings in parenthesis, are Kentucky (8), Mississippi (11), Arkansas (12), Alabama (14), and Louisiana (17). Why are the Republicans in those states so opposed to the benefits that they receive? Maybe they should be careful what they wish for.
On that note, I wish Ayn Rand were alive and giving interviews on her economic and philosophical theories. She is a cult figure in the Republican Party, especially among the Tea Party wing, for her advocacy of unfettered capitalism and ethic of rational self-interest. A new movie has just been released based on her novel Atlas Shrugged in which the capitalists are the heroes.
Actually, Ayn Rand, a Russian Jew who emigrated to the United States at the age of 21, was a committed atheist who opposed all forms of religion. To her, valid knowledge arose only from sense perceptions and human reason. She rejected all claims of knowledge obtained outside of the senses, such as divine revelation. It’s hard to imagine her going very far in today’s political climate as a Republican or a Democrat.
Although, some Republicans simply ignore inconvenient historical facts about their heroes. Maybe Republican Congresswoman and Tea Party favorite Michele Bachmann could re-write Rand’s biography in the same way that she re-wrote American history in a recent speech. She stated in regards to the U. S. Constitution that: “the very founders that wrote those documents worked tirelessly until slavery was no more in the United States.” Actually, many of the founders, such as George Washington and Thomas Jefferson, owned slaves. Not until after the Civil War, nearly 100 years later and long after the founders were dead, was slavery abolished.
On the other hand, if Ayn Rand did endorse Republicans her religious views might not matter. The Reverend Franklin Graham in an interview with Christine Amanpour says that Donald Trump could become his “candidate of choice” for president because “the more you listen to him, the more you say to yourself, you know, may be the guy’s right.” This was said in the same interview that Graham questioned Obama’s Christian faith. There was no discussion of Trump’s faith. Franklin Graham has since been clarifying his comments. I would advise him not seek help from John Kyle’s press agent for issuing clarifications.
John Kyle stated on the Senate floor that “well over 90% of what Planned Parenthood does” relates to abortion. When called out on that obvious falsehood, his office released a statement that “his remark was not meant to be a factual statement.” I checked the definition of the noun “lie” at dictionary.com and found this definition: “a false statement made with deliberate intent to deceive; an intentional untruth; a falsehood.” In other words, according to John Kyle’s office his statement on the Senate floor was a lie. Evidently John Kyle must have realized this too because he clarified his clarification by stating that he “misspoke.” As to the earlier statement released by his office, he said: “"That was not me - that was my press person.”
The upcoming presidential contest should be a great event for comedy writers. Unfortunately it’s going to be a very bad contest for the electorate who will have to listen to all this nonsense.
Thursday, March 10, 2011
Closing My Bank of America Account: The Parable of the Ungrateful Servant
"Therefore the Kingdom of Heaven is like a certain king, who wanted to reconcile accounts with his servants. When he had begun to reconcile, one was brought to him who owed him ten thousand talents. But because he couldn't pay, his lord commanded him to be sold, with his wife, his children, and all that he had, and payment to be made. The servant therefore fell down and kneeled before him, saying, 'Lord, have patience with me, and I will repay you all!' The lord of that servant, being moved with compassion, released him, and forgave him the debt.
But that servant went out, and found one of his fellow servants, who owed him one hundred denarii, and he grabbed him, and took him by the throat, saying, 'Pay me what you owe!' "So his fellow servant fell down at his feet and begged him, saying, 'Have patience with me, and I will repay you!' He would not, but went and cast him into prison, until he should pay back that which was due. So when his fellow servants saw what was done, they were exceedingly sorry, and came and told to their lord all that was done. Then his lord called him in, and said to him, 'You wicked servant! I forgave you all that debt, because you begged me. Shouldn't you also have had mercy on your fellow servant, even as I had mercy on you?' His lord was angry, and delivered him to the tormentors, until he should pay all that was due to him." Matthew 18:23-35
I thought about this parable from the Gospel of Matthew as I closed my Bank of America account at the start of the New Year. I had a long-time checking account (for more than a decade) in which I had dutifully kept the $750 minimum balance to avoid a monthly maintenance fee. In December I received a statement that showed $14 missing. At that point I read more carefully the letter I had received from Bank of America on new fee structures. It explained that to avoid a $14 monthly fee I now needed a $1500 minimum balance. I did not like either choice-paying the $14 per month or adding another $750 to the minimum balance.
It is bad enough that the interest banks pay on deposited money is negligibly small. Now you must provide the bank with large amounts of free capital or your deposited money will be appropriated. Prior to the 2008 financial crisis, institutions such as Bank of America generated large amounts of revenue from usurious interest rates on credit cards and hefty fees for overdrafts and late payments. However, new laws forbidding some of the more egregious practices have sharply curtailed that revenue stream, so banks are instituting new fees to make up the difference.
I decided to shop for a new bank and I was struck by some advice given while conversing with a local businesswoman. "Never do business with a bank that has more than three branches. Banks with three or less branches are too small to be of much value to bigger banks, so there is little risk of a buyout." On hearing this advice, I remembered that I had never opened an account at Bank of America. I opened an account at a large regional bank that was bought by Bank of America. The same is true of another bank I do business with-M & T. I originally opened an account with First Maryland Bank, which was bought by All First, which then disintegrated in a currency trading scandal and was acquired by M & T.
I went to Farmers and Merchants, a small community bank with only three branches, all in northwest Baltimore County. They offered me totally free checking with no minimum balance. I opened a new account and the next day went to Bank of America and closed my account before any additional fees could be assessed.
There are, of course, some tradeoffs with switching to a small local bank. I can only visit the bank when I'm near my house, not anywhere in the country, which was the case with Bank of America. I can only have free use of an ATM machine at one of those three branches, anywhere else I have to pay a transaction fee. But, with proper planning and use of the Internet-even small banks offer online banking-these inconveniences should not be much of an issue. I have to ask myself, is $14 x 12 months, or $168 per year worth it for the additional accessibility Bank of America offers. I would never have the need to use ATMs far away from my house often enough to justify paying $168 per year to access Bank of America's nationwide ATM network. If I have to do that occasionally, I'll pay the $2 transaction fee.
When I closed my account at Bank of America, the manager noted that I had been a long-time customer and asked my reason. I told her that I was unhappy with the new fees being imposed. I said that it reminded me of the parable of the ungrateful servant. She didn't seem to understand the biblical reference. She handed me the cash for the remaining funds in my account and had me sign for it. No counter offer or apology for the new fee structure was made.
Bank of America and the other large banks created an unsustainable business model that generated revenue from high fees and usurious interest rates on high-risk loans. When the model failed they were shielded from the market consequences with billions of dollars in taxpayer bailouts on the condition that they end many of the practices that caused the failures. But it appears that rather than comply with the intentions of the new law, Bank of America is looking for loopholes in order to revive their old business model.
Of course, the large banks insist that even though they are exempt, all their customers should abide by the rules of the market place. That being the case, I think we the customers need to shop more for banking and ignore much of the slick marketing. We also need to overcome our inertia and be willing to change banks when market conditions change. It is easy to close an account and open a new one at another institution.
Ask yourself, if I were shopping for a bank today and considering all the available options, would I choose the bank that I currently have? If the answer to that question is no, then it is time to change banks. Look around and you will find many community banks and credit unions that offer excellent services at fair prices.
When I think about it, there is really no reason for Bank of America and its ilk to even be in business. In fact, if not for the billions of dollars in bad debt forgiven by the taxpayers, they would not be in business. But, Bank of America was not about to forgive the new fees they were imposing on me. It is time for customers to stop paying for all the lunacy and take their business elsewhere.
But that servant went out, and found one of his fellow servants, who owed him one hundred denarii, and he grabbed him, and took him by the throat, saying, 'Pay me what you owe!' "So his fellow servant fell down at his feet and begged him, saying, 'Have patience with me, and I will repay you!' He would not, but went and cast him into prison, until he should pay back that which was due. So when his fellow servants saw what was done, they were exceedingly sorry, and came and told to their lord all that was done. Then his lord called him in, and said to him, 'You wicked servant! I forgave you all that debt, because you begged me. Shouldn't you also have had mercy on your fellow servant, even as I had mercy on you?' His lord was angry, and delivered him to the tormentors, until he should pay all that was due to him." Matthew 18:23-35
I thought about this parable from the Gospel of Matthew as I closed my Bank of America account at the start of the New Year. I had a long-time checking account (for more than a decade) in which I had dutifully kept the $750 minimum balance to avoid a monthly maintenance fee. In December I received a statement that showed $14 missing. At that point I read more carefully the letter I had received from Bank of America on new fee structures. It explained that to avoid a $14 monthly fee I now needed a $1500 minimum balance. I did not like either choice-paying the $14 per month or adding another $750 to the minimum balance.
It is bad enough that the interest banks pay on deposited money is negligibly small. Now you must provide the bank with large amounts of free capital or your deposited money will be appropriated. Prior to the 2008 financial crisis, institutions such as Bank of America generated large amounts of revenue from usurious interest rates on credit cards and hefty fees for overdrafts and late payments. However, new laws forbidding some of the more egregious practices have sharply curtailed that revenue stream, so banks are instituting new fees to make up the difference.
I decided to shop for a new bank and I was struck by some advice given while conversing with a local businesswoman. "Never do business with a bank that has more than three branches. Banks with three or less branches are too small to be of much value to bigger banks, so there is little risk of a buyout." On hearing this advice, I remembered that I had never opened an account at Bank of America. I opened an account at a large regional bank that was bought by Bank of America. The same is true of another bank I do business with-M & T. I originally opened an account with First Maryland Bank, which was bought by All First, which then disintegrated in a currency trading scandal and was acquired by M & T.
I went to Farmers and Merchants, a small community bank with only three branches, all in northwest Baltimore County. They offered me totally free checking with no minimum balance. I opened a new account and the next day went to Bank of America and closed my account before any additional fees could be assessed.
There are, of course, some tradeoffs with switching to a small local bank. I can only visit the bank when I'm near my house, not anywhere in the country, which was the case with Bank of America. I can only have free use of an ATM machine at one of those three branches, anywhere else I have to pay a transaction fee. But, with proper planning and use of the Internet-even small banks offer online banking-these inconveniences should not be much of an issue. I have to ask myself, is $14 x 12 months, or $168 per year worth it for the additional accessibility Bank of America offers. I would never have the need to use ATMs far away from my house often enough to justify paying $168 per year to access Bank of America's nationwide ATM network. If I have to do that occasionally, I'll pay the $2 transaction fee.
When I closed my account at Bank of America, the manager noted that I had been a long-time customer and asked my reason. I told her that I was unhappy with the new fees being imposed. I said that it reminded me of the parable of the ungrateful servant. She didn't seem to understand the biblical reference. She handed me the cash for the remaining funds in my account and had me sign for it. No counter offer or apology for the new fee structure was made.
Bank of America and the other large banks created an unsustainable business model that generated revenue from high fees and usurious interest rates on high-risk loans. When the model failed they were shielded from the market consequences with billions of dollars in taxpayer bailouts on the condition that they end many of the practices that caused the failures. But it appears that rather than comply with the intentions of the new law, Bank of America is looking for loopholes in order to revive their old business model.
Of course, the large banks insist that even though they are exempt, all their customers should abide by the rules of the market place. That being the case, I think we the customers need to shop more for banking and ignore much of the slick marketing. We also need to overcome our inertia and be willing to change banks when market conditions change. It is easy to close an account and open a new one at another institution.
Ask yourself, if I were shopping for a bank today and considering all the available options, would I choose the bank that I currently have? If the answer to that question is no, then it is time to change banks. Look around and you will find many community banks and credit unions that offer excellent services at fair prices.
When I think about it, there is really no reason for Bank of America and its ilk to even be in business. In fact, if not for the billions of dollars in bad debt forgiven by the taxpayers, they would not be in business. But, Bank of America was not about to forgive the new fees they were imposing on me. It is time for customers to stop paying for all the lunacy and take their business elsewhere.
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