Why I’m Writing a $924 Check to Chase Bank

By Anima LaVoy
Fellow at Re-Vision Labs

It all started because I was young, visionary, and progressive-minded.

(Perhaps your story starts like this as well.)

Over the five years since I graduated college, I’ve spent a shocking amount of time working in my dream job.  This has been possible primarily because I’ve given myself the permission to go into debt when the projects and work that matter most to me don’t come with a paycheck.

On several occasions I’ve volunteered for months to support a visionary project, land a position in a bold (and of course, risky) new start-up, or launch that start-up myself.  Always these projects were immediate, exciting, and leveraged the things I cared most about – pushing back on climate change, booting the bad guys out of office, incubating young social entrepreneurs. I’ve learned a ton, and done some cool stuff.

But of course, these values-driven ‘freedom-stints’ of mine have added up to considerable debt.

Now, in theory, this debt isn’t bad.

Friends of mine have taken out school loans and I’ve taken out (far smaller) loans to invest in myself and my own off-roading approach to making a difference. (No, you can’t take out education loans to apprentice with a philosopher. But you sure CAN try.)

The difference, however, is that my friends owe money to the government at approximately 3%, and I owe money to my credit card – at approximately 14%.

So here I am, living my values as best I know how, and sometimes I feel extra generous and powerful when I cut out some cash to send to charities and game-changing political campaigns. Over the last year, these modest but heart-felt offerings have added up approximately $600.  (Mmm…being a donor gives me a warm, fuzzy feeling.)  And of course that doesn’t include the small businesses I go out of my way to frequent and the artists I support by buying (like, paying for) their albums.

But then, after the careful allotment of these meager cash resources and dutiful embodiment of my deeply progressive values, each year I write one very special check to cover the 14% interest on my loans. I write it to the tune of $924* – roughly 1.5x my annual donations to progressive causes – and make it out to Chase Bank.

I’m sorry. CHASE bank?

hummer-h2-tank-mod-1That’s right. THE Chase Bank. The one that last year took twenty-FIVE billion dollars of OUR American money and has just announced that it will deliver an astonishing twenty-NINE billion dollars in BONUSES to its CEOs.   (Translation: We got hooooodwinked and I’m paying the villain). $25,000,000,000 of our common money is no longer available for the climate fight, or economic independence for the poor, or any of the other causes I care about…because it’s locked up in some fat cat’s 3rd residence or H2.

$25 Billion?!! That’s mind-boggling. I can’t even IMAGINE what $25 Billion is.

But I can tell you what that $924 is.

$924 is a serious chunk of my friend Oliver’s mustache during his Mustache for Kids Campaign at DonorsChoose.  $924 is 92 Gaggles of geese (I still don’t know what a gaggle is, but Heifer says I could by 92 of them with my Chase Check.)  $924 is my VIP seat on a local candidate’s victorious election night, or half way to my contribution limit on Obama’s campaign.

In short, this particular $924 is my ticket to Shmuck-Dom.

And for me and my – what did I call it again? “young, visionary, progressive-mindedness?” – that’s just embarrassing.  And it’s particularly embarrassing because (sneak attack!) this is Microfinance Week at Re-Vison Labs.   In preparation for tonight’s big Greendrinks event with Oikocredit USA, we’ve been talking a lot about the power banks and creditors.

But, luckily, so has the rest of the country.

The Move your Money Campaign is raging across social media sites, building momentum off a fantastic video that Gabriel posted earlier this week.

And watching those clips of George Bailey the ethical banker made me think right away of another hero of good finance.  Muhammad Yunus, the founder of Grameen Bank and Nobel Prize winner, pioneered the concept of microcredit by financing loans to poor people with his own money. (Check out this short video for the story.) I originally learned about Yunnus while working (in between ‘freedom stints’) at another great financial institution – ShoreBank – which is a well-loved Chicago-based bank that uses many of the lessons of community-based credit that Yunnus pioneered.

So, with all this background in good money practices, what was I THINKING, letting this $924 slide?

I guess I just WASN’T thinking. I wasn’t, frankly, adding it up.

So this is it, Chase, it’s over. You and me? We’re done. I’m moving all my uber-expensive debt elsewhere because I can’t stand the idea of sending you another dime.  I don’t know how I’ll do this just yet, but I’ll figure it out.

And in the meantime, this is my challenge to all my values-driven friends: Add up the power of your money – whether it’s in the black or in the red.  And if you don’t like what you see, move it.  Because the good guys are out there.

And we can’t afford the rest of this stuff.

*Technically, it’s 12 little checks and I’ve already subtracted the principal to make my point.  The $924 is just the interest.

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  • Sean Conner
    Man! That is so galling... in fact the whole idea of "value extraction" (i.e. the premise for most of large banking profits - thank you ivy league graduates for that nugget of Machiavellian economics... d*cks) is infuriating, but on the other hand if I focused all of my time and energy preventing bad actors from acting badly then I'd be spending no time and energy on promoting good actors from prospering. In fact, framing the argument around the bad actors, in a perverse way, only empowers them further. It's sort of like "hating" on FOX NEWS (for being the crazy douche bags they love to be) only serves their purposes by giving them more media focus, increasing their viewership, profits and thus social impact. In the case of FOX NEWS the best thing that we could all do is ignore them and forget they exist, not rage about how ridiculously biased the “reporting” is.

    Back to the banks for one last rant… This reminds me of a story. An ivy league educated friend of mine (who will remain nameless regardless of pestering... unless you buy me a stake dinner... in Argentina) who worked in the inner most bowels of the former golden child bank of Seattle (you know the one… the big one that failed… rhymes with WaPoo) doing a little publicized activity called 'risk management' [i.e. a euphemism for figuring out (read: justifying exactly how much of our deposited money they can put in risky investments such as CDOs (Collateralized Debt Obligations) and CDSs (Credit Default Swaps) and stay solvent. Lol.] told me something that didn’t click until about 2 years later in 2008 when the sh*t hit the fan.

    He said (and I’m paraphrasing here) ‘that the system is f*cked and I’m getting out. I’m part of a team that spends all day, every day figuring out how to game the system (read: cheat the spirit of the system without actually breaking the law) and outsmart dimwitted regulators.’

    This is particularly disconcerting for two reasons: a) it infers that the “system” is a “game” to be played with winners (the people invested in the bank corporation) and losers (everyone else) and b) that the resources devoted by our regulating bodies to keeping the system stable are so miniscule compared to the mountain of resources devoted to beating the system that all the brains are on one side of the table… how’s that for messed-up incentives!

    Long story short, my friend sold his condo (at the peak of the market) quit his job (well before they went tits-up) and moved with his wife abroad to [undisclosed location.]

    As will most of life, I don’t know what the moral of that story is supposed to be… Maybe I like it because it reminds me that people are usually both the problem and the solution.

    Warm Fuzzies!
  • I don't understand, you write one check to Chase Bank every year? Usually they need to suck your wallet dry once a month. Don't get me wrong, I have several banking protest blogs, so I would like to understand your situation more thoroughly.
  • Anima
    No, you're right - they do. Thanks for the clarification. This 'check' is just the total of my adding it all up - which I don't think we do frequently enough - and which was a point I made explicit in an earlier version of this post that received the knife. My apologies for the confusion.
  • I guess I'm still confused a bit. If I divide 924 by 12 I get roughly 77 dollars a month. Which means you might owe in total around 4 thousand dollars and are required to pay 77 dollars a month, of which half might be going towards interest.

    There are people with Chase Bank accounts paying as high as 30% interest. There are a million chase bank customers who were promised life of the loan, low interest rates of 1.99% to 7.99% and to get out of their promise, Chase Bank increased the monthly minimum payments from 2% to 5%. If customers could not pay the increase, the customer could see their interest rate increased to well over 20%.

    In the perspective of millions of other Chase Bank customers, you may not be that bad off. What you may not be factoring in is the lower monthly minimum payment you have been paying allowed you to do other projects at the same time which can then benefit you if it was time well spent.

    I have come up with several reasons to not approve of Chase Bank tactics, but I'm not sure how your story fits in, in its present state.

    http://www.daily-protest.com
    http://www.robotsagainstchase.com
    http://www.thecatwhoatechasebank.com
    http://www.bloggersagainstchasebank.com
    http://www.parallelforeclosure.com
  • Anima
    Clearly you are an expert on the details regarding Chase, and thanks for your work for holding them to account. To clarify, this isn't a 'whine post' on credit cards, or debt (I took out these loans on purpose and I am terrifically glad I did.) I'm not asserting that credit card rates are unreasonable or unjust (at least not here) and I'm certainly not comparing myself to other Chase customers.

    My point is more general - that with all the great financial institutions out there with my values - I finance WORKING on my values by paying the people who work AGAINST my values. I, and other progressive-minded folks, should add up our impact and find better institutions to send our cash-mulah.

    (And the $924 is the combined interest I pay each year - just the interest.)
  • If you go to http://www.robotsagainstchase.com, I've posted the link to the Move Your Money video, top of the second column from the right.
  • Here here!! Great post Anima. Oikocredit offers a 2% return on investment - http://oikocreditusa.org/invest. And Seattle is filled with great credit unions - WSECU is my personal favorite.
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