Check your bank account fees (esp citibank)

[Ksandra]

http://money.cnn.com/2010/02/01/news...itibank_cuomo/

NEW YORK (CNNMoney.com) -- Free checking will remain free for a just little bit longer for some Citibank customers.

In an announcement made Monday, New York Attorney General Andrew Cuomo said his office had struck an agreement with the banking giant for failing to notify customers about fee changes on several of its free checking accounts.


"Free checking still means free checking," he said during a press conference.

Cuomo, who has become a formidable opponent of the nation's biggest banks, alleged that customers who opened an "EZ Checking" or "Access" checking account with Citibank, were never warned that the company could impose check charges or monthly maintenance fees even if the customer met the basic account requirements.

When Citibank finally did alert its customers to the changes last November however, customers were not given adequate enough notice, according to Cuomo's office. It estimated that the fees would have cost consumers tens of millions of dollars.

Citibank, and its parent company Citigroup (C, Fortune 500), will not pay a settlement as a result of Monday's announcement. Customers who did sign up for a free checking account between Jan 1, 2009 and November 5, 2009 however, will have their free checking extended until the end of 2010.
0:00 /5:26Citi's Pandit bullish on 2010

Citibank also said it will not charge qualifying customers check fees until January 31, 2011.

Cuomo said he hoped that Monday's settlement with Citi would serve as a notice to other banks.

With the industry bracing for a wave of profit-crimping new regulations, lenders have been closely examining a number of options aimed at boosting their bottom line, including raising new fees and instituting new ones on their checking account customers.

"We will continue to scrutinize the fees that banks are charging customers," he said.

Monday's announcement is Cuomo's latest attempt to rein in questionable practices at both Citigroup and the nation's other leading financial firms.

Last month he demanded that the company, as well as the seven other biggest bailout recipients, divulge details on the payment plans for 2009 bonuses in an effort to see if they had made any progress rooting out some of the destructive pay practices that helped fuel the recent economic crisis.

I mentioned in another thread BoA doing something similar where certain "free for life" accounts are no longer free (and cost 20$ a month to boot).

Of course, technically you should be reading everything the bank sends you in the mail about changes in policies, but reality is most people don't. Nor do I think Citibank will be the last bank to do so.

So just wanted to put this out there to remind people to be making sure you check the fees that are getting charged to your account (often they "hide" it in online banking and you have to switch to see your fees because they won't be listed under your account activity section). Again, this probably won't be the last bank to try to get some extra cash out of those that don't pay attention, so make sure you're not one of those people.

[Kryssan]

Yay for military banks and credit unions. You guys have fun with those fees.

[Rhinox]

Another reason to move your money to a smaller community bank.


There is no way they would charge a monthly fee especially if they plan on competing with the bigger banks.

[Sol-Blackguy]

Yay for military banks and credit unions. You guys have fun with those fees.

^

[Dolmen]

Yay for military banks and credit unions. You guys have fun with those fees.

Exactly why I use Navy Federal and USAA.

[Ryko]

North VA rocking that NFCU, went to one like 2-3 days ago.

[willriker]

I always liked credit unions.

[Akucaen]

Yay for military banks and credit unions. You guys have fun with those fees.

This a fucking thousand times over. Credit Unions are the best place to put your money, especially since you get the same Federal backing.

[BardonGaruda]

Anyone still with their money in Citibank is nuts. They go from one rip off scandal to another with the attitude of making more money than they'll have to pay out in compensation and fines.

[Yuri-G]

This a fucking thousand times over. Credit Unions are the best place to put your money, especially since you get the same Federal backing.

there are some advantages, for sure. but there are also huge problems that can arise from credit unions, mostly because they have small staffs and can't afford the same training and computer systems that big banks can. I work for a company that processes electronic transactions and at least 9 out of 10 times there's a bank error, it's a credit union. considering the percentage of accounts at large banks vs. credit unions, that ratio is pretty disturbing.

I'm not saying don't use a credit union, I'm just saying, do your research and choose a bank that fits your needs. I can't tell you how many times someone from a credit union has called me saying "uh yeah, I accidentally sent my customer's mortgage payment (or payroll, or whatever) back..."

on the other hand, also from my own experience: dear god do not use Citi. they are the absolute worst of the big banks.

[Ksandra]

ya I hate citibank too, but that's because they were retarded with my credit card. As I said though this isn't the only bank to do this. Not sure if Credit Unions would ever try to pull this shit (probably not, but who knows?).

[willriker]

I dont know if many credit unions offer credit cards or not. Mine doesnt. They will handle loans, CD's and what not but I do not believe they dabble in credit cards.

They again, that hasnt been a problem for me as credit cards werent a problem to get when i got mine.

[Ksandra]

I dont know if many credit unions offer credit cards or not. Mine doesnt. They will handle loans, CD's and what not but I do not believe they dabble in credit cards.

They again, that hasnt been a problem for me as credit cards werent a problem to get when i got mine.

they are charging fees on checking accounts not credit cards

[willriker]

missread, my apologies.

But, if my credit union decided to charge my checking account... im moving my buisness. Who would bend over and take being charged for a checking account anymore?

[Ksandra]

missread, my apologies.

But, if my credit union decided to charge my checking account... im moving my buisness. Who would bend over and take being charged for a checking account anymore?

well that's kind of the point of the thread in the first place. I think the mindset of these banks is they are hoping most people are either:

a. too lazy and don't notice the fees happening

b. are too used to their bank to change anyways

I want to make sure people don't do either because as you said it's so easy to get a free checking account elsewhere if necessary.

[Mabubeezareel]

One thing that people are completely neglecting to realize is that the age of "free" checking offered by banks is coming to an end. In less than a year from now, no bank will be offering free checking accounts, simply because they will no longer be able to afford to, due to the massive loss of fee income stemming from new regulations in electronic overdraft fees. Basically, customers will now have to "opt in" to allowing their bank to overdraw their account on electronic transactions, such as debit card purchases. Choosing to remain "opted out" will result in any electronic transaction that is greater than the balance in your account to be declined at the terminal.

The bank that has employed me for the past 11 years estimates that the potential fee income lost due to the new regulations is equal to the payroll of 1/4 of its workforce. So banks have a choice - either downsize CONSIDERABLY and inconvenience its customers with fewer branches and fewer services, or make up for the lost overdraft fee income by raising fees across the board. The easiest solution here is to reinstate monthly account fees.

I'm not up to speed on what Citibank did or did not do in this particular situation, but there are regulations that dictate the notices that must be given to customers before the terms of the account agreement change. So for everyone else who has an account in a bank, pay extra special attention to your statements and other bank communications in the next few months, as your "free" checking account won't be so free anymore.

[willriker]

One thing that people are completely neglecting to realize is that the age of "free" checking offered by banks is coming to an end. In less than a year from now, no bank will be offering free checking accounts, simply because they will no longer be able to afford to, due to the massive loss of fee income stemming from new regulations in electronic overdraft fees. Basically, customers will now have to "opt in" to allowing their bank to overdraw their account on electronic transactions, such as debit card purchases. Choosing to remain "opted out" will result in any electronic transaction that is greater than the balance in your account to be declined at the terminal.

The bank that has employed me for the past 11 years estimates that the potential fee income lost due to the new regulations is equal to the payroll of 1/4 of its workforce. So banks have a choice - either downsize CONSIDERABLY and inconvenience its customers with fewer branches and fewer services, or make up for the lost overdraft fee income by raising fees across the board. The easiest solution here is to reinstate monthly account fees.

I'm not up to speed on what Citibank did or did not do in this particular situation, but there are regulations that dictate the notices that must be given to customers before the terms of the account agreement change. So for everyone else who has an account in a bank, pay extra special attention to your statements and other bank communications in the next few months, as your "free" checking account won't be so free anymore.

OR they can do buisness properly. You know, doing income checks on all loans. Make loans that will not change the interest rates wildly so that someone who could pay before... now cannot pay the loan. Cease predatory practices that ingure the banks reputation, and prevent people like me from opening an account with them.

A banks major source of income is interest gained by the loans they have out. When people default on those loans, or they refuse to make them... they will run low on income to pay things like payrole. Instead of conducting buisness in a responcible way to generate more income, some banks go for easy money through charging a monthly fee for checking, increasing fees on late payments, increasing interest rate on credit cards without notice, and other abuses.

The problem is not the regulations, the problem is how some banks do buisness. The irony that many of the banks thinking about doing this are also the ones which were involved with the practices that thrusted them, and us, into this position to begin with has not escaped public knowledge.

There are great banks out there. For example, the one i am currently a member of has not had to slash the interest rates on thier savings accounts. They have not needed to resort to gimmicks like cash back on purchases because it provides no benifit to the consumer. They never got into variable rate mortgages, because they did not feel that it was a responcible lending practice. They didnt make loans which they a legitimate risk of default. They didnt hedge their loans through companies like AIG, they knew what kind of loans they were making and it wasnt worth it for them. I just talked with them, and there is no debate about charging a monthly fee on their checking accounts.

... because they were responcible.

[gt_killa]

and which bank would this be?

[Amarok]

This a fucking thousand times over. Credit Unions are the best place to put your money, especially since you get the same Federal backing.

I work at a credit union and completely agree.

I dont know if many credit unions offer credit cards or not. Mine doesnt. They will handle loans, CD's and what not but I do not believe they dabble in credit cards.

We have 5 different types of credit cards as well as mortgages, vehicle loans, recreational vehicle loans, personal loans, business loans etc. I suppose it depends on the credit union but I know the majority of the credit unions here also offer the same services.

[Velgadess]

reading this thread a few days ago made me LOL. today I recieved a letter from Chase. LOL'd even harder. Originally I was with WAMU before they got bought by Chase due to the banking fiasco from earlier.

WAMU was a great bank, never had problems, direct deposits were always available at start of business day in the AM. Chase would be available the same day, but @ 11:59pm, 1 minute before next day. If payday fell on a holiday, monday or the weekend, with WAMU, my funds would be available Friday before the weekend started or a day before if it fell on a holiday. I've noticed Chase used to follow same policy as WAMU but has changed over the past few months.

So I get this letter, HUGEpretty colored font from Chase bragging about "Awesome new changes" to Chase customers. Had balloons, pretty smily faces, made me feel like I won some prize.

@the bottom of the thing in tiny ass font, had to squint to read, "Please see back for details". Turned the thing around and in even smaller font they listed their "Awesome new changes" in detail.

1)Upping overdraft fees (expected, thought meh)

2) Charging a fee if balance ever reaches 0, including on "Free/Basic checking" accounts

3) If after 15 days, I think it was 15 days, if account balance was still 0, or in the negative, recharging overdraft + 0 balance fee, again and continuing to do so every 15 days till balance was no longer 0.

4) Can't recall exactly but a monthly maintence fee to keep an account with them open unless you kept a certain balance in the account at all times.

Fuck that, joining my local credit union, ASAP. At least Chase gives me till Aug. before they'd start enforcing all these "awesome changes".