Bank pulling a fast one . . .

[Benzadmiral]

Nothing new about that, I guess.

A year ago I opened a high-yield checking (yes, that's right) account with a local small bank. I get the high rate of interest in any period in which I use my debit card 12 times (not counting ATM stuff), have at least one direct deposit, and get my statement by mail. I've complied with that to the letter, and always gotten my interest. There's nothing in the printed agreement about a minimum amount that each debit transaction must be, so I use it for small things, totalling about half of my interest payment; naturally I want to show a profit, right?

Today I get an e-mail:
"In reviewing your Interest Checking account transaction history, we have noticed that you are using your debit card in what appears to be a calculated and limited fashion. In the true spirit of our program we would like to encourage you to utilize your Interest Checking account as your 'primary' checking account.

"As disclosed in our Deposit Account Terms and Conditions, the bank reserves the right to close any account at any time upon reasonable notice to you and remittance of the balance of your account.

"We will continue to monitor your debit card transaction activity. If, in 30 days, your account is still not being transacted in the 'spirit' intended it will be closed and a check will be mailed to you."

Calculated??? They get to use my money all month, in fact for a year, and they begrudge me a $20 profit every month? Exasperating.

Aside from talking sternly to somebody in authority there, what would you do?

 

[Geo_Prizm]

Who regulates banks? If they are left unregulated as some want we will see more stories like these.

I suggest you call the general manager of that bank or CEO and call the bank's practice not befitting a reputable financial institution. Since there are no rules as to how you are to use your account they can not cancel your account based on 'limited'use.

If possible contact the local papers and TV stations to attract attention to the issue.

Good luck beating the capital.

 

[hate2work]

What, you've never heard of the golden rule? "Them with the gold makes the rules".

Fat Walleters have been doing this stuff for years, obviously the banks are catching on. Most have put a stop to the App-o-rama as well. No fast one being pulled here, they're just enforcing the rules you agreed to.

 

[Benzadmiral]

Originally Posted By: hate2work

What, you've never heard of the golden rule? "Them with the gold makes the rules".

Fat Walleters have been doing this stuff for years, obviously the banks are catching on. Most have put a stop to the App-o-rama as well. No fast one being pulled here, they're just enforcing the rules you agreed to.

That's just it. The only rules were the three I listed above. I've been over my printed agreement, and there is nothing in it about a minimum debit transaction, or a spirit of use, or anything else.

While this isn't written down, I recall the bank officer saying, "Many people use this as a sort of high-interest checking account." If "many" people can use it that way, that implies that others don't.

If their rules changed, they were supposed to inform me, no?

 

[Bill in Utah]

Dear Bank,

Thank you for your notice that I am not complying with the "sprit" of the account.

Please send me a check for my balance of the account and close it.

It's obvious that you do not need customers in this economy and I will make sure in any conversations I have with family/friends/customers to note how much your institution does not need any more customers / accounts.

Thank you, Bill

Once you get your check, go someplace else. Life is too short to deal with jerks at a bank.

Bill

 

[JustinH]

What were you getting in Interest on this "High Rate" checking account?

If it is 1-2 percent like what mine pays, then is it really worth the time?

I don't deal with those gimmick banks that have requirements to get their point of interest or whatever.

 

[Sayjac]

Originally Posted By: Benzadmiral
Nothing new about that, I guess.

A year ago I opened a high-yield checking (yes, that's right) account with a local small bank. I get the high rate of interest in any period in which I use my debit card 12 times (not counting ATM stuff), have at least one direct deposit, and get my statement by mail. I've complied with that to the letter, and always gotten my interest. There's nothing in the printed agreement about a minimum amount that each debit transaction must be, so I use it for small things, totalling about half of my interest payment; naturally I want to show a profit, right?

Today I get an e-mail:
"In reviewing your Interest Checking account transaction history, we have noticed that you are using your debit card in what appears to be a calculated and limited fashion. In the true spirit of our program we would like to encourage you to utilize your Interest Checking account as your 'primary' checking account.

"As disclosed in our Deposit Account Terms and Conditions, the bank reserves the right to close any account at any time upon reasonable notice to you and remittance of the balance of your account.

"We will continue to monitor your debit card transaction activity. If, in 30 days, your account is still not being transacted in the 'spirit' intended it will be closed and a check will be mailed to you."

Calculated??? They get to use my money all month, in fact for a year, and they begrudge me a $20 profit every month? Exasperating.

Aside from talking sternly to somebody in authority there, what would you do?
"In the 'spirit' intended."

What a crock of dung. The 'spirit' must be that which can make them money. They don't like it because you've found a way to use it to your advantage, not their's.

If I didn't want to use it the way they said, I'd keep doing what I was doing and make them shut it down. Or, tell them to put it where the sun don't shine, and find another bank. Just depends on how much it's worth to you.

I have a credit card with 1-3% cash back that I pay off every month. I recieve my rebate check and no spirit letters. That said, I realize the program could end any time.

One credit card that I haven't been using, sent a letter recently stating they were going to start charging a $60 annual fee if I didn't have a certain amount of charges annually. The card is still a 1-2% cash back and worth it to me so, I will use it till I get my cash back and avoid the $60 fee, then stop using it again. Going by the letter, not some [censored] 'spirit' rule.

You should ask the bank if you can take out a loan and pay it back regularly except when you are a little short, then you could pay it a little later with no interest penalty. Would they accept that as the 'spirit' of paying back the loan? I think not, something tells me they would go by the 'letter' of the loan.

Banks.

 

[Benzadmiral]

No, Justin, the interest is -- well, it began at 4.41%,but the most recent two payments have been at 3.93%. I hadn't noticed that before. Hmmm. . . .

I plan to go to the closest branch this morning, get the name of the manager at the branch where I opened the account, and the name and address of the CEO, and send a letter. While I'm waiting for a proper response, I'll check some other small banks in the area (Chase pays almost no interest, and I'm leery of Capital One for various reasons). After this, I wouldn't put it past the bank in question to charge me a fee for closing my account when I didn't comply with their "spirit."

If I don't get a proper response, Bill, I suspect a letter to them modeled after your suggestion will be next. It will be annoying having to tell my employer to change the direct deposit to some other bank, filling out new paperwork, etc., but so be it.

By the way, if anybody is in the area, it's Gulf Coast Bank!

 

[GROUCHO MARX]

When banks can borrow money from the Fed for what is essentially zero interest, why would they need customers?

 

[duaneb9729]

I would send them a copy of the agreement and ask to point out the "spirit" clause.

Send that letter to the board of directors and the CEO.

At the end of the letter ask them if they have found that they have far too many customers?

 

[ZZman]

File complaints.

https://www2.fdic.gov/starsmail/index.asp

http://www.ofi.state.la.us/

 

[tig1]

My daughter just returned from Paris Tuesday evening. We are glad she returned when she did, as she might have been stranded there. Well, I guess there could be worst places to be stuck.

 

[Pablo]

That's hilarious.

Just walk. It's your money. Tell friends. They will pay in the long run for a stupid promotion.

You thought they were actually giving stuff away? For free?

 

[stockrex]

x2 for closing the a/c
chase pulled one on moi, no fee checking turned out to $10 a month, when asked, errr, it was no fee for a year. that is not what the fat lady sang when I opened the a/c, grrr.

 

[Cutehumor]

Originally Posted By: Pablo
That's hilarious.

Just walk. It's your money. Tell friends. They will pay in the long run for a stupid promotion.

You thought they were actually giving stuff away? For free?


what's wrong with free? it's my favorite word and free after rebate.

 

[eljefino]

Benz you are my HERO!

I got some new debit/credit card from B of A a few years back, they said they'd give me $20 if I used it 10 times. I went to a self serve gas station and pumped a few cents worth of gas 20 times (misread the letter).

Banks aren't as regulated as they were even a few years back. Used to be you could take an "on us" check in and cash it. Key Bank (shudder) now charges an $8-11 fee. I always felt the spirit

of a check was it was a legal contract that if you went to that bank they'd give you face value in real money.

 

[L_Sludger]

Dear Forum,
Please discover the benefits of a credit union.
Regards,
Sludger

 

[FL_Rob]

Yes, they're in business to make money ,however I would never lose a customer over these stiff internal company policies clearly intended to intimidate you into moving more or all of your banking through that particular account.Rather, I would work with a customer to find a happy medium ,put THAT in writing and everyones' back to their life.These small banks are trying to compete with much larger banking entities,they need to be reminded of that,sit down with them.A senior account manager should iron this out in no time.

 

[d00df00d]

Originally Posted By: sayjac
The 'spirit' must be that which can make them money. They don't like it because you've found a way to use it to your advantage, not their's.

Um. Yeah. That's kind of the point.

Banks exist to make money. They have both a right and a responsibility to get rid of accounts that they don't want to keep. If an account is costing them money, why should they keep it?

Now, that said, the account holder also has a right and a responsibility to close an account that isn't working out to his advantage. I agree with Bill in Utah's advice and would probably send a similar letter myself if I were in that situation.

What I would not do is whine and act like the bank has a duty to hold my money. I feel that, in a free market, if I have freedom to choose a bank, the bank has an analogous freedom to choose its customers. But maybe that's just me.

 

[javacontour]

I'd go so far as to post it on sites like facebook, maybe a link to BITOG, etc, so you let the bank know that you are willing to share your customer experience with others.

Perhaps the $20 a month isn't worth you telling them how great or bad your experience is.

I know when I started posting about my Citibank Shell MasterCard experience a while back, I got a CALL from Citibank saying they wanted to re-open my account.

When I posted about my Blue Rhino experience, I got a call from Blue Rhino offering to give me a replacement burner for my grill.

It's sad that one has to resort to those tactics, but they do work in many cases.

Maybe not so much for a local bank with a small foot print.

Maybe a photo of your car parked in a public area out front of the bank with your magnetic sign on the side of your car stating that XYZ bank doesn't want you or your large deposit account as their customer.