Should there be limits to consumer sovereignty in banking? Look at what one disgruntled customer did in response to a bad experience with AmSouth:
This is another example of how technology has caused banking to become more competitive in recent years. In this case, it makes it easier for consumers to express dissatisfaction with producers, something that would not have been as possible to previous generations of banking customers. Consumers should, of course, be able to say whatever they want about producers--but they can be held liable if they are dishonest and cause harm to the producer in the process. Just the same, I'd have no problem if AmSouth started a website entitled "BadRustyDoebler.com" either.
See also this article about the City of Leeds' efforts to obtain a $22.5 million line of credit (from the Jefferson County Commission) to attract a commercial and residential project. The county, which is overextended in such funding for such projects, is likely to reject the request. What would be the advantages and disadvantages if Leeds' accessed funds through the private sector? Is there significant default, credit, and interest rate risk? Which funding source would taxpayers prefer? And, how does the lack of interest on the part of the Jefferson County Commission reflect the opportunity cost of the proposed $1 billion dome project planned for downtown Birmingham?
"Johnson City, Tenn., resident Rusty Doebler said he set up www.BadAmSouth.com about four months ago after the bank closed his account. The site, which includes a list of discussion forums on subjects such as overdrafts, closed accounts and bank policies, says it is "designed for the purpose of exposing the nightmares of doing business with 'The Relationship People.' "[FULL ARTICLE HERE]
This is another example of how technology has caused banking to become more competitive in recent years. In this case, it makes it easier for consumers to express dissatisfaction with producers, something that would not have been as possible to previous generations of banking customers. Consumers should, of course, be able to say whatever they want about producers--but they can be held liable if they are dishonest and cause harm to the producer in the process. Just the same, I'd have no problem if AmSouth started a website entitled "BadRustyDoebler.com" either.
See also this article about the City of Leeds' efforts to obtain a $22.5 million line of credit (from the Jefferson County Commission) to attract a commercial and residential project. The county, which is overextended in such funding for such projects, is likely to reject the request. What would be the advantages and disadvantages if Leeds' accessed funds through the private sector? Is there significant default, credit, and interest rate risk? Which funding source would taxpayers prefer? And, how does the lack of interest on the part of the Jefferson County Commission reflect the opportunity cost of the proposed $1 billion dome project planned for downtown Birmingham?
posted by Chris at 9:27 AM
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