America is on the wrong track. Instead of creating wealth they are on transferring wealth from others with all the weird, stupid methods! How much longer these inept and unethical practices could continue before they all hit the concrete wall? They are already there.

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Justification for charging all kinds of fees is absurd and is nothing more than an excuse for the greedy, short-sighted bankers, big businesses and government to enrich themselves or generate revenue by taking advantage of financially distressed people, contributing further to their financial hardship and misery. Even worse, instead of putting their efforts in creating wealth, they employ all kinds of inept, unethical and stupid methods to transfer wealth by looting, fleecing and gouging people. Here are a few examples:

1) Why credit card companies should charge late fees when they charge up to 25% interest and the cost of borrowed money is interest?! Why should they care about receiving full payment and deprive themselves from such a high interest rate?! If the banks want to make sure that the customers would pay the minimum amount in order to create a culture of regular payment, they could temporarily block the further use of credit cards in case the card-user fails to make payment, and free the further use of credit card when the required amount of payment is received. If the credit card user has no money to make payment, a late fee would only exacerbate the financial situation of that person and the banks would end up losing the entire amount.

2) When businesses or banks offer similar services but charge different amount of late fees, and are unwilling to remove the late fees they are taking chances to lose the customers to those companies that charges the lowest late fees and is willing to remove it upon request compared to those who are reluctant to do so. For instance, Verizon charges $5, Comcast $9 and AT&T $15 in late fees. Verizon does not only charge the lowest amount of late fee, but is the easiest one to remove it. Anybody, who cares about their financial situation, would go to Verizon. Similarly, Capital One is more accommodating to the customers in this regard as opposed to American Express.

3) Florida Power & Light (FPL) also charge late fee if payments are not made in timely manner! Since they are not a financial institute to worry about loss of interest, all it should matter to them is as long as they get the payment.

4) Crystal water has gone even further. They charge $2.90 for mailing the invoice without notifying the customers before taking this step. Why anybody would want to stay with this company if others do not do the same?!

5) Governments are no less than banks and big businesses. Just miss a fee and the nightmare starts with threats to close down the business until the related fees are paid--immediately!

America is on the wrong track. Instead of creating wealth they are on transferring wealth from others with all the weird, stupid methods! How much longer these inept and unethical practices could continue before they all hit the concrete wall? They are already there.

Authors Website: http://www.khavariforgovernor.com

Authors Bio:

Farid A. Khavari, Ph.D., is a noted economist and independent candidate for Florida governor in 2014. He is the author of 10 books including Environomics: the Economics of Environmentally Safe Prosperity (1993) and Toward a Zero Cost Economy (2009). His economic plan for Florida combines is a model for other states to consider. http://www.khavariforgovernor.com