Federal Finance Minister Negotiates With Banks
Anyone else pulling their hair out? Staying home is, quite frankly, difficult. Of course, I am doing what I can to make the best of it. After all, it really is my civic duty. After all, we are all in this together. That is the theme everyone is sharing. We all have to do our part. Together, but apart. We will only get through this if we all do our part.
Our economy is being decimated. We don't need to turn the news on to know that. Yet, I am glued to the news channels. I don't want to hear about the economy, I just want the daily numbers and recommendations from the public health personnel.
I see how much this is personally affecting our political leaders. I am confident they are working very hard on all of our behalf. I am losing patience with the media asking them the same questions over and over, but, I get it. They have a job to do and there is nothing else to report on.
Last Friday, the Bank of Canada Governor cut interest rates to basically zero. That means the prime rate is a little less than 2.5%. This essentially means that the banks buy money at that rate and then charge customers a higher rate on credit and that is how they make their billions. The average rate of interest on credit cards in Canada is apparently 19,9%. This means they are making at least 17% profit. If anyone offered me that kind of a return on investment, I wouldn't believe them and would report them for a likely scam. Yet, this is perfectly legal for the banks to make this profit.
Yet, for whatever reason, the banking industry seems to think that they do not have to do their part. The mortgage deferrals, which you have to beg for, is not a good deal for consumers. You can get your mortgage payment deferred but you will be responsible for paying it once this is over. Banks aren't losing anything.
Over the last week, Federal Finance Minister Morneau has been negotiating with banks to get them to lower credit card rates. Negotiating? Are you kidding me? What is to negotiate? Our country is suffering, actually, our globe is suffering. We are all trying to get out alive first and once this pandemic ends, then we will try to rebuild. And, as difficult as it is right now, it will be equally, if not more difficult when it comes to rebuilding. Many job losses will be permanent as some businesses won't be able to recover even with the government doing everything they can. Yes, the Federal Finance Minister has to negotiate to get the banks to do the right thing. It is outrageous. We are ordered to go home and stay home. No one negotiated with us. This was our civic duty and we don't like it. Essentially, the Finance Minister is using his time to negotiate with the banks for them to make truck loads of money as opposed to boat loads of money. Frankly, unbelievable.
When interest rates were cut, I emailed my bank requesting a lower rate, essentially for them to pass on their savings on to me. On Friday, I got an email back essentially saying that if I still wanted an answer to my request, that I should email again and I would hear within 72 hours. I sent another email. I heard back how a standard response telling me how much the bank was doing for me and then a recommendation that my interest rate would be reduced for three months. The email further said that this was just a recommendation and not a guarantee. So, I guess I will find out if this recommendation will be approved. Either way, when the interest is charged, I will be following up.
Everyone has to do their part. These includes business and big business like banks and other lending institutions. The government is doing their part and this is especially true of our Finance Minister. He doesn't need wasting his time negotiating with banks something that should be automatic.
Our economy is being decimated. We don't need to turn the news on to know that. Yet, I am glued to the news channels. I don't want to hear about the economy, I just want the daily numbers and recommendations from the public health personnel.
I see how much this is personally affecting our political leaders. I am confident they are working very hard on all of our behalf. I am losing patience with the media asking them the same questions over and over, but, I get it. They have a job to do and there is nothing else to report on.
Last Friday, the Bank of Canada Governor cut interest rates to basically zero. That means the prime rate is a little less than 2.5%. This essentially means that the banks buy money at that rate and then charge customers a higher rate on credit and that is how they make their billions. The average rate of interest on credit cards in Canada is apparently 19,9%. This means they are making at least 17% profit. If anyone offered me that kind of a return on investment, I wouldn't believe them and would report them for a likely scam. Yet, this is perfectly legal for the banks to make this profit.
Yet, for whatever reason, the banking industry seems to think that they do not have to do their part. The mortgage deferrals, which you have to beg for, is not a good deal for consumers. You can get your mortgage payment deferred but you will be responsible for paying it once this is over. Banks aren't losing anything.
Over the last week, Federal Finance Minister Morneau has been negotiating with banks to get them to lower credit card rates. Negotiating? Are you kidding me? What is to negotiate? Our country is suffering, actually, our globe is suffering. We are all trying to get out alive first and once this pandemic ends, then we will try to rebuild. And, as difficult as it is right now, it will be equally, if not more difficult when it comes to rebuilding. Many job losses will be permanent as some businesses won't be able to recover even with the government doing everything they can. Yes, the Federal Finance Minister has to negotiate to get the banks to do the right thing. It is outrageous. We are ordered to go home and stay home. No one negotiated with us. This was our civic duty and we don't like it. Essentially, the Finance Minister is using his time to negotiate with the banks for them to make truck loads of money as opposed to boat loads of money. Frankly, unbelievable.
When interest rates were cut, I emailed my bank requesting a lower rate, essentially for them to pass on their savings on to me. On Friday, I got an email back essentially saying that if I still wanted an answer to my request, that I should email again and I would hear within 72 hours. I sent another email. I heard back how a standard response telling me how much the bank was doing for me and then a recommendation that my interest rate would be reduced for three months. The email further said that this was just a recommendation and not a guarantee. So, I guess I will find out if this recommendation will be approved. Either way, when the interest is charged, I will be following up.
Everyone has to do their part. These includes business and big business like banks and other lending institutions. The government is doing their part and this is especially true of our Finance Minister. He doesn't need wasting his time negotiating with banks something that should be automatic.
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