Comments on: Competition, Not Regulation

By: David

David — Thu, 15 Mar 2007 04:05:33 +0000

Ben,
Puleeeeeeeeeese, don’t compare USA costs to those charged in Canada, US marketeers are as good or better at stripping a dollar from your pocket as Canadians. Fer instance, my latest phone bill was $12 higher ’cause my wife made a one minute phone call to me from a point a few miles away. I am used to paying about $0.02 per minute for long distance, so you can imagine my shock at the 600% premium for using the US telephone network.

If it wern’t for a few good drinkin’ buddies south of the border, …….

David

By: Bryce

Bryce — Wed, 14 Mar 2007 22:48:01 +0000

Also, sorry about the spelling and grammer. Whos who’s … terrible.

By: Ben

Ben — Wed, 14 Mar 2007 22:43:00 +0000

I am for free markets as much as the next guy but I would consider our ABM network somewhat of a natural monopoly, along the lines of hydro telecommunications, mail delivery etc. I think we do a really bad job with this stuff in canada, just look at your next cell phone bill and compare it to similar usage in the states. Walking 4 miles to get cash, not being able to send data economically with your cell phone has real affects on productivity (which all ready isn’t that great). I’m not saying government can regulate it away, but as a society if we built more of this modern infrastructure, and let private companys go to war to provide the services it would be a lot more competitive, which is better for everyone. If we don’t I think we will really get beaten by some of the developing nations in the coming years

By: Bryce

Bryce — Wed, 14 Mar 2007 21:32:42 +0000

We already do regulate against stupidity – see usury laws. Even if someone was stupidly willing to borrow money at 50% it is against the law. Regulations don’t allow it. I probably wouldn’t even be able to find where it states that my bank will charge me the $1.50 (we aren’t talking about the charge you have to agree to on the machine). If this fee is not transparent to the user of the machine (yes some people are stupid) should it be allowed? I’m not saying it shouldn’t be but when you take out $20 it constitutes a 7.5% fee. That is pretty high.

CC. I’m sure that the database setting, or whatever they have, is dialed down to zero just as easily as it is cranked up. Yes CIBC machine are almost everywhere which is why I only had the charge once in the past 4 months. But what about the AISH recipient who’s check gets deposited at some obscure credit union? Every time he takes out $20 he should be charged (2+1.5)/20 = 17.5%? Well he probably does only have an IQ of 60 the sucker. Maybe the machines should have a more nominal percentage based charge? I don’t know what the answer is but I can see cases where it needs to be looked at. For me, yes I am smart enough to avoid the fees and I care enough about $1.50 that I usually do.

By: Canadian Capitalist

Canadian Capitalist — Wed, 14 Mar 2007 21:01:29 +0000

Bryce: Let me get this straight: you have a PC Financial account, which charges nothing for issuing cheques, no minimum balance and no Interac charges for direct purchases and withdrawals at their machines or at CIBC and you want regulation because you were charged $1.50 four months back? How far are we going to go with regulation? How much regulation is enough? And finally don’t forget that the banks are going to find a way to make up their fees elsewhere plus the cost of complying with new regulations. Not to mention, the extra bureaucrats we’ll be supporting through our taxes to enforce the regulation.

By: Al R

Al R — Wed, 14 Mar 2007 19:45:45 +0000

It’s unfortunate how people envision “the banks” as corporate monoliths, and not as publicly traded companies that are owned by tens of thousands of Canadians in their retirement portfolios or employer sponsored plans. In fact, given that the CPP holds Royal Bank, TD, BNS, BMO, etc., every Canadian that has ever earned income owns at least a tiny piece of the banks.

If people can’t take elementary steps to avoid these charges, I have zero sympathy for them. You can’t legislate against stupidity, after all.

By: Ahmed

Ahmed — Wed, 14 Mar 2007 19:18:45 +0000

Regarding fraud charges: It bothers me that we are paying high fees for inferior technology. I have already fallen victim to debit fraud by a card reader at a major movie theatre. Thank God PC bank was able to catch it. But shouldn’t the ATM fees go towards better debit technology like Europe has. i.e Smart Cards have a built in chip that prevent them from being copied.

By: Bryce

Bryce — Wed, 14 Mar 2007 18:46:35 +0000

Free market? Where is that? Not in Canada or anywhere else in the world. And you won’t see it anytime soon. ‘Conducting Business’ is not in the charter of rights. The government and communities can place restrictions on how a buisness operates. The ‘Big Banks’ did not get that way out of pure business savy. They are the result of government structure. CDIC, CMHC, etc. There is a structure that the banks work under and we define it. We can add to it or take away. Free market? Bologna.

By: $

Wed, 14 Mar 2007 17:02:52 +0000

I think people who complain about the free market should be regulated away.

Open your own bank and not charge any fees and make no profit. Have fun.

By: Bryce

Bryce — Wed, 14 Mar 2007 15:43:37 +0000

Actually using PCFinancial if you take out money at a white label machine the white label will charge you $2 and PCF will charge you a

ABM INTERAC CHARGE $1.50

I just copied that from my online statement (I had to go back 4 months to find one). I think this kind of crap can get regulated away.