BANK FEES… (The Clandestine Pick-pocket) Posted by Jamie at 04/28/08 11:31 AM

Have you ever added up your bank fees? Wow! When I added up the bank fees on my fairly new business account, they totaled about $187 for the year. Each month the fees were a little different, some months were more, some less. I was upset with my bank and disappointed in myself that I hadn’t realized exactly what I was being charged, and it didn’t feel as if I was getting much for my $187.

I decided to call my bank. “Sandra” in customer service told me that I have a “custom account” and the average monthly service fee is $16. In order to avoid that service fee, I would have to “maintain an average balance of $40,000 otherwise there is a 20 cent charge per debit, 30 cent charge per credit and 18 cent charge per deposited item.”

I have to say that I almost fell off my chair. I explained to Sandra that I was never told about the $40,000 minimum balance, and that most people would invest that kind of money in a 401k or an interest bearing account, not in a checking account.

I could feel my blood boiling as I explained that I didn’t open the account with a large amount of cash. I told her that I felt as if I was being ripped off too and I felt I should be taking my business elsewhere. She said she could look around to see if there is a better checking account to suit my needs.

After waiting on hold for 4-5 minutes, which felt much longer, Sandra came back and told me about a basic business account with lower but still significant fees.

I wanted to know why this wasn’t offered to me when I opened the account. Sandra didn’t know, of course. I wasn’t feeling very good about keeping my money with this bank. I explained to Sandra that it isn’t right to say “I am sorry for the inconvenience when you have already charged me these high-rates.”

I wasn’t going to accept a brush-off, so Sandra put me on hold for another 2 or 3 minutes. This time, she put in a request to reverse the fees. It was sent to approval for an immediate answer, and I would know something within two hours... If I didn’t see it by the next day, then the request was declined. My perseverance resulted in a $61.12 credit… basically the difference between my high cost account and the cheaper one...
Whether you have a business or a consumer account, it pays to watch the fees and to ask for a better deal –at your own bank or somewhere else. I am still unhappy with the charges, so stay tuned as I check for other deals…and keep your eyes out for other ways your bank is charging you for your business.

comments (6)

1 Posted by King at 04/28/08 12:26 PM

Really, it took a year to notice $187 worth of fees? Good luck getting them to refund anything more than last month's fees. Once the next statement comes, you implicitly accepted the previous one. I'm constantly amazed at how many people apparently don't check their bank and credit card statements!

It's bad enough banks don't pay us anymore (0.02% doesn't count as interest) to use our money. But charging a fee is even worse. I don't do business with any bank that charges for the priviledge. The fact that they get to use my money while it sits there should be payment enough.

2 Posted by Sharon Forrest at 04/30/08 02:34 PM

You just provided another reason to be glad that we have a community credit union in my neighborhood. The community got together and started it in 1972. My fees are as follows:
$5.00 per month for any month when my balance falls below $300.00.
That's it. It's the same for my business account and my personal account.

Sick of commercial banks? Start a credit union with your neighbors, at your work place, at your church or with your organization. You will be dealing with people who know you and care more about providing a service than making a huge profit.

3 Posted by Sandra Cole at 05/01/08 06:32 PM

The solution is to search for a good Credit Union. I have done NO banking in 20 years. My Credit Union has handled all my financial needs.

I have found them pleasant to deal with, honest and tranparent about terms, and concerned with my best interests.

Banks have tried to stifle the formation and services offered by credit unions, but have been unable to do so. They deem them unfair competition. I think banks just resent the fact that Credit Unions are fair to the consumers who own them, and that banks are not able to put a Credit Union member in a "take it or leave it" position.

4 Posted by Donna Senegal at 05/02/08 04:15 AM

I agree, the banks charge too much in fees for services that should be free. I've been with my bank for over 20 years. The service is free as long as I have direct deposit. I have on-line banking and check my account daily. One day I noticed charges for $10, fee for checking and $10, fee for my savings being under the minimum. After getting it straight and refunding the fees I noticed an overdraft charge of $34, I was overdrawn by .69. The thing about this I had made a deposit the same day as the charge came in. I was told that my deposit came in after the debit charge and therefore I was liable for the overdraft. I am now in the process of changing banks and I'm looking at a credit union instead of a regular bank. Its time something is done about the banking fees and the way they do business. My current bank even charges for calling customer service.

5 Posted by Dan D. at 05/06/08 12:12 PM

In January '08 I went to my local Citibank branch with my Daughter while she opened her 1st checking account. During the process the 'helpful' banker took notice that my checking acct. pays no interest & asked why I don't have an int. chkng acct. When I replied it made no sense to pay fees for that type acct. which exceeded the interest earned he 'assured' me my balances were sufficient to earn int. w/o paying any fees. I said 'sign me up!'
Starting in Feb I now pay a $25.00 monthly fee and a fee per check paid of appx. $3.00-$3.50, while earning $0.50 or so interest.
I complained & the bank is now investigating why I am assessed the $25 fee because it should only be $9.50-$12.00.

6 Posted by Cheryl R. at 06/05/08 08:41 PM

I am at a Credit Union, and I can't say that I'm happy right now.
Technicolor FCU upgraded my account without my consent and charged me $5.95 additional. I phoned to question the charge and they said they had mailed out a letter saying they were automatically doing this, unless you opt out. I either never got the letter or didn't bother reading it. OK, my bad. Or is it? Honestly, the amount of mail I get each day of offers, etc.., who has time to read everything? The Credit Union alone sends me 2-3 additional mail pieces outside of my statements. But when did it become fair business practice to change an account without the customer actually signing up for it, acknowledging they understand what is being offered and how much they will be paying for? This tactic is reminiscent of experiences with banks. I have asked for the charges to be reversed, was forwarded to the manager's voice mail and have not heard back.
Deeply disappointing.