• Obesity? Let's talk about it. Caught Red-Handed L Michigan Institute for Laparoscopic Surgery WI Scott Laker, MD 248-255-4380 WWW.MICHIGANSURGERY.COM DISCOVER LUXURY SALES EVENT , Grand Traverse Collection SAVE AN ADDITIONAL Discover a World of Outdoor Luxury, on Sale for a Limited Time. FOR A LIMITED TIME SEE STORE FOR DETAILS PALM BEACH PATIO & CASUAL FURNITURE 7350 Highland Road (M-59) • Waterford I www.PalmBeachPatio.com (248)-666-2880 HOURS: M-Th 10 8•T W F S 10-6 • Sun 12-4 L LOYDFLANDERS.COM 30 May 15 • 2014 ast month, the Consumer Financial Protection Bureau (CFPB) compelled Bank of America to refund $727 million for fraudulently charging its customers for add-on products, such as identity theft protection and payment protection programs and imposed $45 million in civil penalties. "Bank of America both deceived consumers and unfairly billed consumers for ser- vices not performed:' said CFPB Director Richard Corday. Bank of America is not alone in fleecing its custom- ers. Created in 2010, the CFPB was part of the Dodd- Frank Wall Street Reform and Consumer Protection Act. Since Sept. 24, 2012, the CFPB has compelled Discover, Capital One, Chase, GE Capital, American Express and Bank of America to refund $1.554 billion to customers for similar fraudu- lent practices. It has been 600 days since Sept. 24, 2012 — $1.554 billion divided by 600 = $2,598,662 per day! Can you imagine if the CFPB was formed in 2000, rather than 2010? At the present rate, over the 4,265 days (365 x 10 = 3,665 + 600) the aggregate refunds and penalties would equal $11,083,293,430. That's a whole lot of fraud — more than even Bernie Madoff! If you or I committed these types of blatant misdeeds, there is no doubt we'd end up in jail — and deservedly so. So, how is it that up until 2012, big banks were able to fleece their custom- ers at will — and even now, when they are caught red-handed, all they have to do is refund the fraudulently received money and then pay a relatively innoc- uous fine? Crime does pay. Of the $1.554 bil- lion in refunds, the banks were only penalized by fines of $121 million. Over the 600 days of the agency's existence, this means the credit card companies have been fined at the rate of $201,166 per day. The credit card companies charge cardholders interest at an industry average of 15 percent. Assuming they had the ben- efit of using the $1.554 billion for two years before paying the refunds, the 15 percent interest charged to their customers over the two years equaled $501 million. If you then subtract the penalties, the net gain on the money refunded is $380 million. Not a bad deal — for the banks. Even when they are caught red-handed, they make money on the deal because the penalties don't approach the profit earned on the use of the wrong- fully obtained money. This behavior must be stopped. We do not raise our children to be thieves, and we have the absolute right to demand the same from our banking institutions. In the words of Peter Finch in Network (1976): "I'm mad as hell and not I'm not going to take it anymore:' On occasion, I get into a debate with someone who thinks it is inappropri- ate when we are able to represent a client and resolve credit card debt for pennies on the dollar. As a child, I was taught, "Two wrongs don't make a right:' That's a nice notion and has many proper applications. That rule, however, conflicts with other rules, such as, "an eye for an eye" or as I was taught in law school, "Don't get mad; get even:' Since when do we allow thieves to simply return the money and pay a small fine? I'm comfortable with "Don't get mad, get even" as a practicing lawyer, and when it comes to the credit card industry, we should all get mad and even! ❑ Ken Gross is an attorney with Thav Gross and host of The Financial Crisis Talk Center show that airs weekly at 9 a.m. Saturdays on WDFN 1130 AM, "The Fan" and 11 a.m. Sundays on MyTV20.