looking for a new bank

Zach · Post by **Zach** » November 3rd, 2009, 3:05 pm

Does anyone have a bank they are happy with?

I am leaving Bank of America after a recent incident.

After having a large utility post earlier than expected I made a series of 9 small transactions on my checkcard over my sister's graduation weekend while there were not sufficient funds to cover them. The combined value of my transactions was $98.18. Since there were no funds in checking, instead of declining my check card (at which point I could have easily pulled out some cash, or transfered some money from my Bank of America savings account), the bank let all of these small transactions go through, and then charged me $35 overdraft per transaction.

So my 9 transactions totaling less than $100 are going to cost me $315 in overdraft fees. I called the bank and yelled at them all afternoon, and they told me this was a service they provided to keep your check card from being declined. After much protest from me the customer service guy offered to take $70 of the charges off my bill. I told him I was still planning on leaving and asked to speak to a superior, at which point I got transfered back to an automated menu where I reentered a large amount of information I had already done once and then was disconnected after about 3 mins of trying to navigate the voice menus.

So my question is, when did banks start providing this "service"? and does anyone have a bank they feel is not big stinky and evil?

Any help would be appreciated. Sorry to vent, but this stuff drives me nuts.

vine311 · Post by **vine311** » November 3rd, 2009, 3:11 pm

Something very similar happened to me the final weekend of OoB at Chase bank. My overage was about $200 but by the time I found out I was overdrawn, they had already charged me $875 in overdraft fees. There was no notification and they did not disable my debit card. They would have just let me keep digging the hole deeper and deeper. I don't know if there are any banks out there that don't do this. This is a major source of income for them and they've kind of got their clients by the balls in that respect. If you do find a bank that is actually reasonable about this type of situation, let me know. I'd like to move there too.

Matt · Post by **Matt** » November 3rd, 2009, 3:13 pm

Whatever way you go, I suggest calling up the bank and request that they disable this 'service' for that account - most will do this upon request. If they don't, don't give them your business.

apiaryist · Post by **apiaryist** » November 3rd, 2009, 4:32 pm

I use both of the following banks. They are local, solid, and extremely friendly:

http://www.eagle-bank.com/

http://www.ufcu.org

I dropped Wells Fargo for them years ago and have never looked back.

LisaJackson · Post by **LisaJackson** » November 3rd, 2009, 4:36 pm

I suggest NOT using Wells Fargo. I use them to dump checks that aren't being direct deposited in my other account.

I also have an account at a credit union out of state. I like credit unions better than the big boys, especially in terms of interest rates, the only issue there is the number of places and ATMs.

Roy Janik · Post by **Roy Janik** » November 3rd, 2009, 4:48 pm

I use Wells Fargo, and am very happy with them... increasingly so over the years, as their online presence has gotten more and more sophisticated.

But of course, I don't have a savings account at all with them, in part because they were charging me bullshit fees.

Post by **bradisntclever** » November 3rd, 2009, 5:08 pm

It's become fairly well-known over the last year that banks profit heavily from overdraft fees on debit/check cards and have used it to offset losses in the recession. There is some good news on this front, however:

Congrees prepares to curb bank overdraft fees
USA Today (11/1/09)

The movement to reform bank fees is accelerating as Congress takes aim at controversial industry policies that encourage consumers to fall into debt on their checking accounts.
The House Financial Services Committee blasted banks and credit unions at a hearing Friday for routinely paying consumers' overdrawn transactions, then charging them steep fees. These fees have bolstered banks' balance sheets during the recession while turning debit cards — which the industry often advertises as a product to help you manage your money — into a debt trap for some consumers.

"Why are overdraft services the only ones where banks can take consumers' money without their permission?" Rep. Carolyn Maloney, D-N.Y., said at the hearing. "How is this different from Burger King charging you for a burger you didn't want?"

Maloney has sponsored a bill with Rep. Barney Frank, D-Mass., requiring banks to get consumers' permission before covering their overdrafts and charging them a fee. Currently, most banks will automatically enroll customers in these programs.

The legislation, which faces stiff opposition from the banking industry, would also cap the number of overdraft fees consumers can be charged and tie the fees to the transactions' processing costs. Sen. Chris Dodd, D-Conn., has a similar bill pending in the Senate.

The legislation comes amid an ongoing USA TODAY investigation of overdraft practices that found that banks have purposely made it easier for consumers to spend more than they have, leading overdrafts to become the industry's single largest driver of consumer fee income.

The newspaper's findings were highlighted in a July House Financial Services Committee hearing.

At Friday's hearing, Rep. Emanuel Cleaver, D-Mo., asked panelists to comment on separate USA TODAY research showing "profits, not costs, generally drive bank (overdraft) fees."

Nessa Feddis, senior counsel for the American Bankers Association, a trade group, told Congress that "for any business, costs and profits drive fees." She added that banks see overdraft fees as a way to deter consumers from overdrawing.

Jean Ann Fox, director of financial services for the Consumer Federation of America, said, "When a bank decides to lend money to consumers by letting a debit purchase go through that should have been denied, the fee is not a deterrent, it's a profit center."

Maloney hopes to get overdraft reform on President Obama's desk by the end of the year.

KathyRose · Post by **KathyRose** » November 3rd, 2009, 5:12 pm

I've happily had a checking account with Wells Fargo for years, and really appreciate their online banking services. I declined their "overdraft" service long ago, as well as their "bank draft card" to avoid unintentionally-inflicted charges.

Ironically, I closed my Amplify credit union account this year, where I kept my meager savings, because they started charging me $5 a month for having an "inactive" account - meaning I wasn't depositing or withdrawing funds, just letting my money sit there. I thought that's what a savings account was for - a SAFE place for your money to SIT. Bastards!

ashleylowe · Post by **ashleylowe** » November 3rd, 2009, 7:37 pm

I suggest not using Citi.

mpbrockman · Post by **mpbrockman** » November 4th, 2009, 3:54 pm

I suggest a coffee can. I fell out of the habit of using banks years ago and have only ever really been happy with a few in my adult life: those being Memphis' Union Planters, Northwest (since eaten by Wells Fargo) and Union Bank of California.

That said, UHCU ( www.uhcu.org ) is the closet thing I've found to acceptable in Austin for when you just have to have a freaking bank.

I actually sat down with my old Wells Fargo bank statement some 6 years ago and added up the various fees that came along with the account and realized it was cheaper to keep my savings account but close my checking and operate on a cash and money order basis. That's not for everyone, I know, but it works better for me. Then to add insult to injury, Wells charged me $10 to close the account! So I pulled my savings too and put it in UHCU.

Anyway, good luck - they pretty much all suck in one way or another.

the_orf · Post by **the_orf** » November 7th, 2009, 3:28 pm

Rather than just bashing banks who are gooberheads (so far I've seen Citi, Chase, and Wells Fargo on the do-not-use list) I'll give you a bank I have been happy with: Wachovia.

Every branch I have visited is staffed with friendly people. They not only don't charge a bunch of nitpicky fees--at least not on my level of account--they actually refund ATM fees that other banks charge you (up to three times per month, I think). On occasions where I felt like I got docked for a fee I shouldn't have, the branch manager logged in to the system and credited it back to me right then and there. And of course, you can turn off the "overdraft protection" option if you don't want to risk going $900 in the hole like Zach or Vines.

Wachovia's online presence is nice too. You can pay all your bills and such that way, and then you can even download the info into Quicken or Excel formats for tax or record-keeping purposes.

And when I signed up upon my move to Austin a few years ago, they gave me a free iPod shuffle. So that was nice.

York99 · Post by **York99** » November 12th, 2009, 12:20 am

apiaryist wrote:I use both of the following banks. They are local, solid, and extremely friendly:

http://www.eagle-bank.com/

http://www.ufcu.org

I dropped Wells Fargo for them years ago and have never looked back.

I've been trying to figure out what a credit union is, as compared to a bank and I'm not grasping the concept. I've had so many problems with Chase that I want to leave them... but they're so enticing with all of their locations.

valetoile · Post by **valetoile** » November 12th, 2009, 1:13 am

A credit union is like a co-op, in that it is owned by its members, not its shareholders. They are managed by a board that is usually volunteer, rather than paid, and they are not-for-profit. They pay out dividends to their members, not the shareholders, and can offer members lower loan rates, higher savings rates, and fewer processing fees.

Basically, they exist primarily to serve the members, rather than make money.

York99 · Post by **York99** » November 12th, 2009, 1:22 am

valetoile wrote:A credit union is like a co-op, in that it is owned by its members, not its shareholders. They are managed by a board that is usually volunteer, rather than paid, and they are not-for-profit. They pay out dividends to their members, not the shareholders, and can offer members lower loan rates, higher savings rates, and fewer processing fees.

Basically, they exist primarily to serve the members, rather than make money.

Those seem to be the bulk of the good points. What's the down side? It seems like a credit union is the best bet, but if that were the case, then they'd be better competitors to banks.

The next question will be: How does one find the best credit union?

arthursimone · Post by **arthursimone** » November 12th, 2009, 1:28 am

York99 wrote: The next question will be: How does one find the best credit union?

I too have had enough of getting screwed by Chase
you screw up it's just hemorrhage, hemorrhage, hemorrhage

I hear good things about Velocity Credit Union