CBS Plays the Victim Card and Takes
It to the Bank
Evening News criticizes ‘controversial new
fee’ after man overspends his account
By Dan Gainor
April 13, 2005
   Â
On the “CBS Evening News,” if you spend more money than you actually
have, you’re still a victim. According to anchor Bob Schieffer,
banks had hit the subject of their story with “a controversial new
fee” worthy of a “consumer alert.”
    The April 11, 2005 newscast focused on
Christopher Keeley of Brooklyn, N.Y. who relied on debit cards to
make purchases, even after his account was almost entirely empty.
When Keeley made purchases, rather then decline them, the bank
approved them under a new service called courtesy overdraft
protection. That service allowed debit card holders to overcharge,
but charged a fee for each purchase.
    Reporter Randall Pinkston emphasized the
cost of the fees, but never interviewed any of the customers who had
pushed for the new service. “Consumer advocates say banks have gone
fee crazy. In addition to the first fee, some banks tack on daily
charges until the courtesy has been repaid. It’s all legal and very
profitable,” said Pinkston.
    The story also portrayed banks as
relying on the money from overdrafts, without making it clear that
such fees are intended to discourage customers from spending money
that isn’t theirs and to subsidize other services offered for free.
Pinkston also ignored the fact that bounced checks can actually cost
more than the fee the banks are charging. Merchants typically charge
for every returned check on top of the bank’s fee for insufficient
funds.
    Even though Keeley admitted at the end
of the story that he “was a bad book keeper,” Pinkston still placed
the blame on the bank, even though it had lowered the fee in this
case: “And it's those mistakes that banks are counting on,” he
concluded.
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