The financial experts at American Financial have seen tough economic times before. Though it is easy to lose hope in the face of mounting debt and increasing fees, American Financial assures clients that there is a solution. American Financial is a comprehensive financial resource center dedicated to restoring the economic vitality of those most affected by these precarious economic times.
American Financial reports that some of the nation’s largest banks, including Bank of America and Chase, have been quietly implementing measures to offset recent losses by squeezing their average customers. This means that credit card holders are seeing their credit card interest rates climb as high as 28%. In the face of these pressing measures, the role of American Financial as a consumer credit advocate is more important than ever.
American Financial says that consumers are increasingly upset about recent increases in bank fees, credit card interest rates, and minimum balances. One reason big banks give for these extra fees during such lean times, says American Financial, is that the banks are trying to raise money to pay back the federal TARP funds they requested from both Presidents Bush and Obama. Despite this plausible explanation from lenders, American Financial explains that this money does not necessarily have to come from penalizing customers.
American Financial cites a very telling statistic. Insufficient-funds and overdraft charges account for nearly 90% of a bank’s consumer-fee related income. The remaining few percentage points of consumer-fee income comes from sources like ATM charges and withdrawal penalties. In fact, continues American Financial, bank income from consumer-fees in 2009 was almost $42 billion.
For a sense of perspective the total consumer-fee income collected by banks in 1999 was $20.7 billion. The goal of American Financial is to educate their clients about the kinds of upper-level financial strategies they are up against. Once consumers have a more complete understanding of their predicament, says American Financial, they are better equipped to develop their own strategies to negotiate lower interest rates, pay off debts and perhaps even save money again.