Bank of America Demonstrates How to Alienate Potential Customers Print
Thursday, 30th August 2007 (by J.D.)This article is about Real-Life, Shopping
Last month I shared stories of good customer service Kris and I have experienced recently. Sadly, this sort of thing seems to be the exception rather than the rule. Tim wrote to share a frustrating experience he had with Bank of America, the kind of thing The Consumerist covers all the time. Here’s his story:
My employer ran a promotional thing where if you completed a set of “healthy living” tasks, they gave you $25. When we got the $25, rather than being cash, check, or added to our paychecks, it was given to us in the form of a $25 pre-paid debit/credit card from Bank of America.
When my card arrived in the mail, it had the usual sticker across the front notifying me that I had to activate it before use. I attempted to activate it using the website listed on the sticker, but when I entered the last four digits of my SSN as requested, it told me that the authorization failed.
Giving up on the online activation, I called the number listed on the sticker instead. The automated phone activation also failed, so I was transferred to a live operator. The gentleman was quite helpful, and activated my card for me.
All seemed well and good, until a few days later when I attempted to use the card for exactly $25 and much to my confusion, it was denied. Thinking that perhaps the activation had somehow failed a third time, I called the number on the card again. The lady that I spoke with explained to me that my card was denied for “insufficient funds” because it only had $22.50 on it. Huh?!? When I explained that it was a $25 pre-paid card, and I this was my first and only attempt to use it, she told me that there had been a $2.50 “call fee.”
The only time I called in was to activate the card. During the call, there was never a notification that there would be any kind of fee associated with the call. When I asked the lady if that meant that this call would also result in a $2.50 fee, she replied “probably.” When I explained to her that there was never a notification of any fees, and I had only called in to activate the card, she essentially told me “tough cookies, this card has fees.”
It’s not as though I need the $5, but I have to say that I was extremely put off by Bank of America’s deceptive practices, excessive fees, and total disregard for customer satisfaction. If it is at all in my power, I will never do business with Bank of America in the future. What I don’t understand is how that kind of practice can possibly be legal?
This reminds me of gift cards with fees or expiration dates. I recently gave away our encyclopedia set for free on Craigslist. The man who picked up the books was so excited that he gave me a partially-used Blockbuster gift card. He didn’t know the balance, and when I researched it myself I learned:
- Blockbuster gift cards expire after two years of inactivity.
- There’s no way to check the balance from the web or by phone. You must go to a store to check the balance.
I eventually made it to a store, but it was a frustrating experience. I usually do business with companies that are easy to work with, so I’m not accustomed to those with policies that are customer-hostile. (To make matters worse, I used the gift card to buy The Godfather, a movie I already own! Growing old is the pits…)

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August 30th, 2007 at 5:29 am
In Canada - and specifically in my home province of Ontario - the government has proposed to make gift cards ineligible for expiration dates - i.e. it will be illegal for new gift cards to ever expire.
August 30th, 2007 at 5:58 am
Have a word with your employer - if they are with it enough to be doing this promotion, they certainly don’t want it to turn into a source of frustration for their employees.
At the very least, you might be able to get them to dump BOA for future promos of this type, and possibly you could get them to tell BOA why. THAT might get BOA’s attention.
August 30th, 2007 at 6:13 am
Another BOA fiasco - I use their online banking and generally it’s quite good, but my savings accounts began to show $3.00 monthly fees. I sent multiple emails, but finally had to call, and wait, and talk to a representative to learn that “online automatic transfers” don’t count toward the automatic transfers that will eliminate the fee - only “agent initiated automatic transfers” will work. This means I have to talk to a person, the pain of which I was attempting to avoid by using online banking. Even worse, the agent transfers don’t have the same parameters that the online transfers do, and they have a limit to how many they can make. So I had to either drop an account or pay the fee every month, because their practices couldn’t keep up with their policies. Blah!
August 30th, 2007 at 6:14 am
In some states, gift cards are not allowed to expire. People regularly auction off expired gift cards online as I understand, and they are purchased by citizens in states where the company is legally obligated to honor the card.
Just FYI. And definitely I’d talk to your employer about it. Or just steal a $5 stapler or something so you’re even!
I’m just kidding about the stapler, of course, but I would think the folks at work will be interested in your problems. Having employees feel they’ve been “cheated” even for small amounts can cost a company way more in ill will than the tangible amount.
Consider how often people will completely vandalize a vending machine because it stole 75 cents from them. Feeling powerless creates disproportionate levels of anger.
August 30th, 2007 at 6:31 am
Man Bank of America must be the king of fees. My girlfriend has an account there and I was helping her set up her quicken to automatically download from her accounts. It wouldn’t work so she called up and found out they charge a monthly fee (I forget but something like $3) to enable the quicken account downloads. How ridiculous is that? I’ve never had to pay a fee at my HSBC account in over 3 years. I’ve heard BOA also has fees on bank transfers, that “keep the change” promotion and pretty much everything else other large banks do for free and customers take for granted. I couldn’t be happier with HSBC with free checking, online savings, eft’s, billpay and more. But if they start charging fees for things I get for free now, I’ll look for another bank.
P.S. I got $10 bounced check fee refunded using Ramit’s method over at I will teach you to be rich: http://www.iwillteachyoutoberich.com/blog/negotiating-out-of-bank-fees-part-2
August 30th, 2007 at 6:42 am
I blogged about some problems with Bank of America on Tuesday–I’ve been waiting on a bill for a long time, and finally had to call to see if something was wrong. Nope–they just sent it. Per my calculations and given the 10 days they recommend I give my payment to get through the mail, by the time I got my bill and mailed it out again, it would have arrived 1 day after the due date! (I didn’t wait for the bill to mail my payment, of course.)
August 30th, 2007 at 6:45 am
I had a similer bed experience with BOA in their deceptive (or outright fraudulant) business praciice.
A short while ago there was a credit card promotion for a BOA credit card with Uni of Iowa alumni asso. The reward was 25000 points and anybody can apply. I applied for the card
received the card but no reward. Repeated calling to their customer service is nothing but frustration.
Never again BOA.
Anil
August 30th, 2007 at 6:59 am
Ugh. Definitely talk to your employer about how difficult their “gift” is to use.
Switching banks over fees is a hassle, but I think it’s worth it. My bank (Commerce) introduced a minimum-balance-or-$15-monthly-fee to my “free” checking that applies no matter what. Even with direct deposit, I have to keep a minimum balance or pay their fee (more than double what most other banks in the area charge). As much as I like the convenience of their hours and locations, I’m leaving for another bank and I’m telling them why. It didn’t help that they “notified” me in small on a postcard advertising a credit card, where it’s only chance that I didn’t miss it altogether–and then charge me the fee anyway, despite my account being above the minimum balance AND before the date it was supposed to start.
August 30th, 2007 at 7:05 am
Been there, done that. I have a Goodyear/Chase/Visa gift card in my wallet that was supposed to have $40 on it. Apparently you can use these things in a ATM (and I set up a pin during activation), but when I tried doing that it failed. I tried a few more times and eventually gave up.
A few weeks later, I tried putting $40 of a purchase on the card, but it was denied.
Finally I found the web site that allows me to check the balance and it turns out the card now has $36 on it. Apparently those failed ATM attempts cost $4.00. Of course, now I can’t even use an ATM as they only dispense in $20 increments.
I’m about ready to just those this piece of crap away.
August 30th, 2007 at 7:11 am
Good old BofA… :rolls eyes:
Back when we carried balances on credit cards, we had a BofA card that we transfered a balance to.
We sent the first payment off, figuring we had plenty of time to get there… but no, we got a late fee (which they waived). We sent the next payment in two days earlier (because our last payment had been a day late), but it was still a day late (they again waved the fee). Finally we added a whole week, thinking it would do the trick; but still it was entered one day late (they waived the fee again). We pretty much had to send the payment in as soon as the bill arrived in order for them to enter it on-time… and that was allowing over two weeks for it to get there.
Needless to say, we transferred that balance to a different card right away.
I’m just glad I don’t have to play that balance juggling game anymore… woo-hoo!!!111
August 30th, 2007 at 7:12 am
This one left me scratching my head - I went to my old bank to change my mailing address after I moved. They refused because I had no way to verify my new address and repeatedly cited company policy that was in place “for my security” - even though they were able to verify that I actually was the person who owned the account.
So, I decided to close my account on the spot, and was handed a cashier’s check worth several thousand dollars.
After I had the check in my hand (made out to CASH), I asked the manager if he felt his policy was working “for my security.” BTW, BB&T has great service…
August 30th, 2007 at 7:27 am
my list of complaints against BofA if so long, detailing it would be boring after the first page. I believe that, if they could, they would put a tollbooth in their front doors.
August 30th, 2007 at 7:46 am
Just fired Bank of America earlier this week! After banking with them for over 10 years, (and really have no problems with them until about two years ago) my bank card stopped reading English in the ATMS and was automatically detected in Chinese. Not being able to read Chinese (or any Asian language, for that matter) I had no way to navigate the main interface.
Multiple calls to BofA resulted in them telling me they would have to issue a service request for a technician to fix it. Nobody could tell me why it had suddenly just decided to be in Chinese, and nobody was able to tell me why it wasn’t just a quick fix on their system to change language preferences.
A few weeks went by and I finally received a letter from Bank of America stating that they apologized my account was in Chinese, but they were unable to fix it and the only way to get it back in English would be to cancel the entire account and open a new one. Needless to say, I canceled the account and opened a new one at another bank.
August 30th, 2007 at 7:52 am
Good customer service means everything. I thought my Discover cash back bonus was too low, based on their special 5% cash back on hotels, etc. I sent an email, and they responded that there was a $20 cap on the special cash back bonus. I hadn’t seen that fact anywhere, and emailed them (politely) that I was disappointed because it wasn’t clear that there was a limit when I signed up. I didn’t ask for anything; I just let them know I didn’t think it had been clear and I was disappointed.
They responded by giving me a bit of an extra cash back bonus, but reiterating that is was a one-time thing and that for all extra 5% bonuses, there is the $20 cap.
We’ve been with Discover for years, and we have always gotten good customer service, and this reconfirmed it.
August 30th, 2007 at 7:53 am
Deceptive business practices designed to make you miss a deadline, semed to be BOA MO. Their ghastly website, with one tiny item of info per page, seems consistent with the MO.
Within 3 months of Bank of America acquiring my former credit card company, I canceled 3 BOA cards. I will never get another.
August 30th, 2007 at 7:59 am
Doug, in all likelihood, you wouldn’t have been able to pull out the $40 in cash from an ATM anyway because there’s probably a fee for ATM withdrawls. At least that has been my experience.
From what I can tell, pre-paid credit and debit cards are basically nothing but fee-generation scams run by banks (Bank of America or otherwise). I received one as a gift a few years ago. I don’t recall which bank it was issued by. When I activated it, I had to give them my SSN, which should have worried me more than it did at the time. Once activated, I was told I could use the card as a debit/ATM card wherever I pleased. Well, I did my best to just try to get as much cash out of it after finding out that every movement made on one of those things is charged a fee. Want to check your balance, either online or over the phone? That’ll be 50 cents please. Oh, and when you call, we’ll mention the fee to you, but only after you’ve chosen to hear your balance and the fee’s already been charged. Want to make a purchase? It’ll cost you 75 cents (or $1.50, I don’t recall exactly). Getting cash from an ATM was $2. I got fed up and asked them to send me a check for the remaining balance and “close” the account, since apparently activating the card is akin to opening an account with them. They did so, but not before charging me $5 to close the account.
August 30th, 2007 at 8:38 am
I was none too thrilled when my MBNA Motley Fool Visa became a BoA card. Both lenders drive me crazy with their nonstop 0% balance transfer offers–the rate is generally good for about one billing cycle, and my shredder overflows with their weekly blank checks. I hate to think how many trees they kill with their mailings.
But that’s just par for the credit card course. By far more serious, here’s a scary example of both poor customer service and poor technology from Chase Bank: two years ago, Chase overhauled its website. Upon logging in a week later, I discovered that my accounts had suddenly been mixed up with my ex’s, and he discovered the same when he logged in with his own - different - password. We’d been divorced for four years, and had had all of our joint accounts transferred to single ownership or closed), but we now had full access to each other’s new accounts. When I called to get the situation remedied (ASAP, thanks very much!), they first said they were aware of the problem, that it had happened to some other customers also, and they would have it fixed in a few days. A week later, when it was still not fixed, they said “in another week…”. Half a dozen lengthy phone calls and two months later, I had to close my accounts to clear them from common access. During my conversations with Chase, no one ever apologized for the inconvenience, not to mention the serious breach of both safety and privacy. One service rep even told me it wasn’t that big a deal, since at one point we had had joint accounts! I shudder to think of the potential consequences for someone whose ex might have capitalized on that situation.
Then there’s Citibank, which, when I called to take advantage of a balance transfer offer they’d posted online, initially refused to honor the offer, saying it had expired. When I pointed out that their website expressly stated the expiration date (still a week away), the reply was, “Well, that’s our website, that’s a whole different thing.” As if they had no responsibility to honor the information on their own site–and who knows, given the heavily lender-favored regulation of banking policies, they may not have. This time, though, a supervisor–again after extended protest from me–did agree, grudgingly, to honor the offer.
August 30th, 2007 at 8:49 am
Does anyone have a recommendation for a good bank? I’m sure all banks have their fees, but does anyone feel like their bank’s fees are fair? I’m asking because BofA seems to consistently screw me over also.
August 30th, 2007 at 8:50 am
I hear BoA bashing all of the time, but in the four years I’ve used them I’ve never had this kind of experience. True, my “free” checking requires direct deposit, but my job has that so it isn’t a problem. But all my interaction with customer service has been prompt and friendly up to this point. My only real complaint is that for some reason I can’t have a separate mailing address from my home address.
That said, one of my best experiences with a bank was with Washington Mutual. Free checking, deposits immediately available, free online, the works. If only they had branches where I live now…
August 30th, 2007 at 8:56 am
THE reason I left BOA years ago:
I wrote a check, say, on the first…dated the first. I didn’t have the full amount in my account to cover the check, however, I placed the money into the account on the 5th. The person I wrote the check to deposited into their BOA account on the 10th… and it bounced. WHY??? Because they went by my account balance as of the 1st instead of what was in there on the 10th!
It took me all of 2 hours to have my account closed. Took me all of 2 weeks to have 10 other people, family and friends, close their accounts as well.
Madness! Simply Madness!!!
August 30th, 2007 at 8:57 am
@ Baddriver: I suppose that would be complaint number two for me with the Quicken fees. But there’s an option in BoA online to download a quickconnect file which allows you to update. It’s just a bit more time-consuming to do. I wouldn’t call it amazing, but it does get around the monthly fee.
August 30th, 2007 at 9:48 am
The next time you’re in line at the grocery, take a look at the purchase/activation fees listed in the fine print on the back of those Amex or MC/Visa gift cards. They’re in the $10-15 range, which on a $100 card is a 10%+ surcharge… BEFORE they take the 2.69% transaction fee from the merchant when it gets used.
Those things are just a horrible deal.
August 30th, 2007 at 9:51 am
I can’t even begin to explain the headaches that BOA has caused me. But I have since switched to Wachovia, and true to their slogan, they do have amazing customer service. If I can offer any advice, and do so for everyone I meet, stay far far away from BOA.
August 30th, 2007 at 9:52 am
Of course, it isn’t fair to bash without giving kudos where they’re due. For Robbie: I’ve had great experiences with Wachovia and Discover for credit accounts. For deposit accounts, I get a good interest rate from Citibank and have never paid a single fee…they also offer a sign-up bonus at times. I’ve heard good things about ING Direct and Orange, but can’t report on those firsthand.
August 30th, 2007 at 10:09 am
While I haven’t tried every bank, I’m getting the feeling that the huge national chains are not very interested in customer service. I dropped B of A years ago and I am getting ready to drop Wells Fargo.
My replacement is Charles Schwab. You can open a combo checking/investing/savings account (you actually have two accounts) with a decent interest rate, free checks, free bill pay, refunds of all ATM fees, debit card, etc, etc. I’ve only had it for a week so far, but plan to fully transition away from Wells Fargo soon.
Here is the kicker- Schwab acts like they WANT my business!
August 30th, 2007 at 10:40 am
I have a Wells Fargo gift card with $3.23 on it that I can’t access. I’ve gone to WF asking to cash it, but they said it was inaccessible. No further reason was given. I’m stumped.
Jae
August 30th, 2007 at 10:53 am
I don’t understand banks that drive away customers, even if those customers are “costing the bank money”. Especially when you’re talking about young people. It may make sense to an MBA to nickel and dime the starving students and focus on keeping the people with $100,000 or more, but here’s the thing: young people don’t stay poor forever, but a pissed off customer will never come back.
When your crappy service and ridiculous fees and policies drive a customer away, you’re not just losing their checking account or Visa or whatever they have with you now. You’re losing their mortgage, their savings, their investments, their lines of credit and business loans–basically every dollar they will borrow or save for the rest of their life.
When I was a kid my parents opened up a savings account for me with Royal Bank of Canada. All they had to do was not piss me off and they would’ve been my bank for life. But they couldn’t do that. First their savings accounts stopped paying interest above the rate of inflation, so I moved my savings to ING. Then they “discontinued” my no-fee checking account and converted it to an account with a 50 cent transaction fee.
Now I see that they are advertising a savings account with higher interest than ING, but I don’t care. There is nothing they can offer that would entice me to switch back.
August 30th, 2007 at 10:59 am
I was with an awful bank (U.S. Bank) for a l-o-n-g time, and I put up with a lot of crap (fees, etc.) because I was too lazy to change. I’d complain a lot, but I’d never actually do anything. One day they went too far, and I switched to a credit union.
There are times that the credit union is inconvenient, but that doesn’t happen often. And I never feel like they’re screwing me over.
August 30th, 2007 at 11:12 am
My BOA card is paid off, and I need to just cancel it all together. Catherine’s comment about the BOA site is dead-on. For the last three months I had a balance on the card, whenever I would click “Pay My Bill,” it would log me out of the entire system, making it impossible to pay online. So I started paying by check. They also assessed a late fee for a payment that was on time, thereby disqualifying me for my balance transfer rate. I moved everything to another card, paid it off, and I’ll never use the BOA card again.
August 30th, 2007 at 11:29 am
JD - My credit union has helped in numerous ways… For example, each time I bought a car on credit, the dealership would offer to “beat” my bank’s financing. My credit union always was a percentage point or two below the area banks. The dealerships would groan but come in a bit below my CU.
I had some loyalty to B of A since a scholarship program of theirs paid my tuition for a year, but it wore off some years ago. They didn’t do anything bad for a bank - it’s just that First Tech CU was better.
August 30th, 2007 at 11:33 am
For those saying that I should talk to my employer about it, don’t worry, I have. Here is the HR representative’s reply:
That was weeks ago, and I haven’t heard an update on it yet. Having it posted here reminded me to check up with them again, and encourage them to drop BofA for future such promotions.
Oh, and I second J.D.’s dis on US Bank. I actually banked with them for a few years, and they were almost as bad as I’ve heard BofA is.
August 30th, 2007 at 11:34 am
Funny, I’ve never had any problem or been charged any fees by bank of america. I have a checking, savings, auto-loan, unused credit card, and home equity line with them. Never any problems. I’m thrilled with their technology but have never really had to deal with their customer service. Unfortunately for a company that big, a single account holder is disposable so I hope I never have to.
Those prepaid purchasing cards are a scam at any bank. Just like gift cards, they have you over a barrel.
August 30th, 2007 at 11:37 am
I prefer credit unions because fees are minimum if at all. However, my employer made it convenient to use BOA. I keep sufficient funds to keep the fees away, use online banking without a hitch, so far, but they do charge to transfer money to another institution (like to my CU) and I have a nice ARM. I keep waiting for them to raise the rate to prompt me to go “home” to the CU though.
August 30th, 2007 at 11:39 am
Sounds like a case of “BIG bank syndrome.” Bank of America is huge. Personally, I evaluate banks (and any large entity) on a case-by-case basis. To date, I have not experienced the problems stated here. Direct deposit gets me free checking, transfers and upload to Quicken (I use BOA Bill pay - free). Would caution writing off any company over one experience. Whenever, I’ve done that, I only shortchanged my own opportunities the companies who were the target of my anger/frustration continue to thrive
I have experienced better customer service at one particular BOA branch and make it a point to frequent that location. Didn’t get my mortgage there only because they couldn’t beat the rates quoted by Wells Fargo. Yet the BOA representative continued to encourage me throughout the home-buying process. I’ve read complaints about both financial institutions. I do hope the good customer service I’ve been provided from both BOA and WF continues.
August 30th, 2007 at 11:42 am
I had my first and last dealings with Bank of America 10 years ago. I did a small remodel job for a client. He thanked me and wrote me a check for $150 on Bank of America. On my way home, I passed by a Branch bank and decided to go in and cash his check. The teller asked if I had an account with this bank. I said no but the check is drawn on your bank. After an ID check he decided he would cash it for me. When He counted out the money, he only counted $147. When I questioned him about the discrepancy, he said there was a $3 service charge for using a live teller instead of depositing it in my own bank. Now, when I take a check on Bank of Amerca, I charge the customer a $3 service charge just for using that bank.
August 30th, 2007 at 11:42 am
Sounds like MGM-Mirage!
August 30th, 2007 at 11:46 am
I see a couple of people commenting that they want to cancel their BoA credit cards. If they don’t have an annual fee DON’T CANCEL THEM, especially if you’ve held them a long time. They are an important part of your credit score!
As for banks — go with a credit union if you can — and you probably can. Use the Credit Union Locator to find one that you can join:
http://www.creditunion.coop/cu_locator/index.html
By the way, I just got burned (and wrote about on my site) by Walmart.com in the same way someone here talked about: they don’t feel like what they promise on their website or order confirmations is something that they have to actually do. (In this case it was 2-3 day shipping that arrived after they quoted). I guess it’s not just banks that feel they don’t need to treat customers with respect!
August 30th, 2007 at 11:47 am
Banks and credit cards count on fees to make money. They treat merchants just as bad as they do consumers. Think these fees are unfair? Go to Unfaircreditcardfees.com
We are calling on Congress to take action and force banks and cc’s to become transparent. For example, the interchange fee is the biggest fee you’ve never heard of.
August 30th, 2007 at 11:48 am
I recently read an article about how a bank’s most profitable customers are also the least happy with their service. Some business model aye?. This is obviously because these profitable customers are stuck in a cycle of interest, penalties, and fees. Unfortunately, the answer for these folks isn’t usually as easy as changing banks, it requires reversing the habits that got you there.
August 30th, 2007 at 12:10 pm
I have to second the bit about Schwab’s banking service. We’ve had a checking account with the a year now, and, other than having to mail in deposits instead of bringing them to a bank directly, we are very happy. They do provide pre-paid postage envelopes for the deposits, and the ATM fee rebates (even for oversea use) are great, as is the interest rate.
August 30th, 2007 at 12:53 pm
I also have had numerous issues with BOA ranging from seemingly random interest rate rises to false fees to my checking account and accidentally applied late fees on a credit card.
The worst issue I’ve had with them was with a credit card account that I closed 3 years prior was not properly processed and snowballed late fees of just a few cents over and over until it amounted to over $100. I only discovered the issue because they mailed me a notice threatening to send the account to collections!
August 30th, 2007 at 2:42 pm
In the state of Florida, expiration dates are also illegal on gift cards. I believe it’s annual fees that are illegal, but I’m not sure of any others.
I hate BoA. They took my fingerprint before they’d let me cash a check that was written on a BoA check. I was outraged, but it was a financial low point, so I subjected myself to it.
For your employer … Simon (a US chain of shopping malls) gift cards are Visa or MC and can be used absolutely anywhere. I haven’t heard of any such ridiculous complications with them, but I haven’t yet used the one I was gifted, so I guess we’ll see.
August 30th, 2007 at 2:50 pm
I have to admit that I like Credit Unions and actually ING the best.
I do have a BOA 0% interest card I am using at this moment though. There was some kind of glitch on BOA’s website where the account alert I count on to send me an email to let me know when my CC payment is due somehow got erased.
I noticed that my payment was late. I immediately paid it online, set up a new account alert, used the ‘talk online’ feature to IM a customer service rep, who reversed the late fee, but did let me know that since the payment was late, my 0% balance transfer would be recinded. The 12th month was going to be November. She said I could call this 1-800 number and ask that they reinstate the 0% offer.
So I called, they saw I had 9 months of payments that were paid before the due date and they reinstated the 0%. I was afraid I was going to have to pay it off immediately (it is sitting in an FNBO account earning 6%).
So the moral of the story is…I don’t know, but while I am not impressed with BofA in general they did alright by me.
Now I HATE Wells Fargo……
August 30th, 2007 at 6:23 pm
I hate BoA, too. I did a balance transfer (the 1st time) several years ago. I would go in to the branches to make a payment, and the tellers didn’t have access to figure out what my cc account # was. One even told me to use their customer service direct link phone to call them and find out, and then get back in line to talk to a teller. Needless to say, I pushed back rather hard and made *him* make that call.
I do have a balance transfer with them right now, even though I loathe them. Though, at this point BoA is EARNING me money, as the money I would be using to pay down this balance more rapidly is mostly sitting in an ING savings account earning almost 5%.
As to WaMu, they’re on my sh*t list currently. I recently had to call their CS several times over an issue, and was: 1. NOT told useful could-have-saved-me-a-lot-of-headaches information until the problem was resolved and I didn’t need the advice any longer; 2. repeatedly given inaccurate and conflicting information from reps (one rep manager said “I don’t know where she got that information from. It’s completely inaccurate.”); and, best of all: 3. they in essence told me they don’t care about my accounts with them, and I’ve banked with WaMu for about 15 years (”I’m really pissed at WaMu right now. Why should I continue to bank with you?” “Well, I would certainly be frustrated in [xx situation], too.” “You just dodged and ignored my question.” “Well, you can certainly choose to put your money in whichever bank you choose.”).
If I had direct deposit available (I’m self-employed), I would just switch all my banking to an online bank.
August 31st, 2007 at 1:40 pm
I had a similar problem with a USBank gift card my wife and I got for our wedding. Service fees, expiration date, no explanation of conditions, etc. I complained to the Oregon Attorney General (well, the Dept. of Jusice: Consumer Protection Office), which sent scathing letters to USBank and got every service fee refunded. I’m sorry to hear the banks haven’t started behaving better yet.
August 31st, 2007 at 2:28 pm
I’ve only had a BoA checking account for a couple years (almost 3), but so far everything has been pretty ok. I’ve never been charged any ridiculous fees (unless you count the $2 non-BoA ATM fee… RIDICULOUS) and I haven’t really had to deal with them much in terms of customer service. I did notice that they seem to have a shady practice of processing transactions out of order, just to be able to charge you a fee. Luckily, I was able to call them on this because they tried to charge me $30 overdraft fees by holding my deposit in pending for a WEEK (7 DAYS!) just to see if I perhaps would make a withdraw/transaction that would put me over my limit. Little did they know that I made another deposit right before I made a transaction that put me over my limit. So when I called them to ask them to remove my overdraft fee, I was able to question their motives and ask why one deposit was cleared within a day and yet the other still hadn’t been cleared after 7 days. Their excuse was that ATM deposits take longer to clear than the bank teller deposit. Oh really? That’s funny… hysterical actually, because the deposit that was still pending WAS a bank tell deposit and the one that cleared was an ATM deposit. Thanks… you can remove the overdraft fee now.
I don’t actively bank with BoA right now, I primarily use ING (checking and savings), but because I don’t have direct deposit I still use BoA as my “proxy” account. I can deposit a check into my BoA account and then have ING transfer the money over. BoA has gotten better about clearing deposits within a day or two, but ING still takes up to four days to clear a transfer from an outside bank. Luckily I’m just shy of living paycheck-to-paycheck, so it works for me.
Until BoA tries to pull something ridiculous, I’ll keep them around just because. But the second they do, I’m dropping them and either switching to WaMu or demanding that my company (of 5 people, heh) get direct deposit.
August 31st, 2007 at 9:19 pm
Don’t take this the wrong way, but I’m actually somewhat delighted to read all of these horror stories with BOA because now I know I’m not the only one. Every time I call them regarding some issue or question, no matter how minor, I end up having to call them no less than three times (on different days) just to get it sorted out.
At the moment, I have an issue with my credit card where I made a payment too early and it was applied to the previous month rather than the next month as I had intended. I called to see if it was possible to get this sorted out, and was told that it would be no problem. Long story short, it’s now almost two months later and my account is nearly in ruins. I’ve made six calls to them and have been made promises that the problem will be fixed all six times. They have yet to do anything.
The only thing BOA is willing to do without hesitation is apply a fee. And the worst part about that is that they don’t list the fee charges on the website. So, for instance on my credit card account, they’ll apply my monthly finance charge but WILL NOT make a note of how much the finance charge actually is, which is really shady.
I want to cancel my checking and transfer my credit card balance to another card at another bank, but will that hurt my credit score? Does anyone know?
August 31st, 2007 at 9:54 pm
I closed my B of A account years ago when they started charging me $3.00 to talk to a bank teller and $1.00 per telephone call to their customer service department.
I have been with a credit union for over twenty years - I’ll never go back to a bank.
September 3rd, 2007 at 1:45 pm
I have noticed that all my credit cards except Bank of America’s tell me what my finance charge is at the end of every billing cycle.
To figure out what your monthly finance charge is with Bank of America, you have to subtract the current month’s starting balance from the previous month’s ending balance. It is a bit deceptive not to say it outright.
I was naively thinking that i was not accumulating any interest month by month, however i was wrong. Of course in retrospect, i realize this was a dumb conclusion, but this is in due part to BoA omitting this data.
Besides that, having to pay $10 a month to automatically sync my bank account with Microsoft Money is a damn shame. On the bright side, i can download ‘active statements’ manually, and it does the same thing. Chase lets me sync bank data for free. No problem’s there. CapitalOne does it for free too.
Bank of America still hasn’t deposited the $10 into my account that i am supposed to get for referring another person to their institution.
Bank of America’s online interface is awesome, and one of the reasons i stick with it, but lately i’ve been considering exploring my options.
They recently created a mobile version of their website at bofa.mobi, and it works wonderfully on my phone and pda. Being a customer of theirs is a bitter sweet affair.
September 4th, 2007 at 9:59 am
I have one last check with BOA that I am waiting to clear and then I am dropping them like a bad habit to switch to using my credit union and ING Direct. I think the amazing thing with the fees charged by BOA is for insufficient funds.
It used to be (way back when) that banks would simply not cover checks or use of check cards that went over what you had as a balance. Would seem to make sense.
Well, that was until they realized how much they could make off of fees if they paid the amount and then wacked someone with an “Insufficient Funds Fee”. With me, this happened once when I was a little too aggressive with a monthly payment to a non-BOA credit card. I had 2 or 3 charges that were pretty darn small, but moved me below $0 balance.
Guess what? BOA paid them each (some as small as a $7 or so purchase) but then hit me with a $35 fee FOR EACH ONE. So, for maybe $50 at most in purchases, I was charged $105. Ouch.
What I wonder is what if you had someone who was pretty bad at budgeting and ran into this kind of thing often. Essentially, BOA would keep charging them and even when new money came in, they would be behind the 8 ball because of charges. It’s like a system designed to make people who are bad budgeters completely fail.
How is that responsible banking?
September 4th, 2007 at 1:56 pm
I just found out today that BoA charges a fee for Quicken to download your account balances automatically. I think that’s complete BS. They wanted me to sign up for a $9.99/mo plan JUST to check my balances! I don’t want bill pay through quicken or anything.
I just got this account a couple weeks ago, because I moved out east where there are no Wells Fargo ATMs. It worries me that I’m already running into unexpected fee roadblocks…
This may be a short-lived partnership.
September 4th, 2007 at 3:51 pm
Drew, you can download your statements through their online interface, but for automatic syncing you have to pay unfortunately. It’s pretty horrible considering their competitors do this for their customers free of charge!
I also called them today and they told me that they do not disclose the finance charge in the daily/monthly breakdown. If you get paperless statements you need to download the statement to see what the finance chage for that month was. WaMu & CapitalOne has always included it in the daily breakdown where i don’t have to look far.
Our best bet is to email BoA and find out what they can do about making the senisble move of providing this service for free for its customers. It is one of my few complaints with this bank.
September 4th, 2007 at 8:23 pm
I had an experience with BOA that I’d like to share. I initiated a balance transfer once for the amount of $27000(yes, 27K)and noticed that the amount didn’t make it to my bank in a week, two weeks and then for 3 weeks. I wouldn’t be so concerned but they actually deducted that amount already from my credit card. I initiated ‘research’ from both BOA and my E*Trade Checking account. BOA says that they sent the amount and E*Trade says they didn’t receive any amount. Finally it turned out that the associate who helped me with the balance transfer didn’t put in some information properly and the transaction didn’t go through. What was surprising is that it took over a dozen calls to BOA and 3 weeks time to resolve this. And while all this was happening, they happily deducted the amount from my credit card account.
September 4th, 2007 at 9:13 pm
My CU is only about a mile from where I sit. There are two banks closer in distance but they are much further away in terms of fees and policies. The CU offers every sort of banking service I am likely to require … and skims less off the top.
Online banking is free. (I make cash deposits in their ATM and have not yet had a problem with it.) They made a SINGLE mistake with my checking account and fixed it within a couple hours of being notified. I can’t complain.
September 5th, 2007 at 3:20 am
Don’t forget besides getting hit with the atm fee you are using to pull your money (if its not a BoA atm) BoA will charge you $2 for not using one of their own atms which means that the penalty for not being able to locate one of their atm can run you anywhere from 3.50 to 4.00. When i calleded to complain they said they couldn’t reverse the charges and when i said i didn’t know about the stupid policy, the representative only cited examples from the past to make the point that i SHOULD have known about it, even though the $2 charge shows up in a very discreet manner on my bill.
some other banks offer free atm withdrawals, just one more thing that makes me consider moving my account.
September 6th, 2007 at 5:31 pm
I have banked with Wachovia for 10+ years and have multiple accounts (checking, savings, mortgage) with them. I have always been very happy with their customer service and the benefits of my accounts up until this year. Both my husband and I have noticed a dramatic uptick in random fees this year. I called customer service again today and talked with a very helpful supervisor who I hope has solved the problem. Short story, I’m keeping less money in my accounts because we are paying off our unsecured debt this year (or we hope to) and as such started incurring fees for having a full service account but not keeping the required average balance. So yes my banking habits changed and it might be reasonable for the bank to change its behavior in response. But the problem is that I’ve talked with 4 or 5 different folks over the last 3 or 4 months and have not been able to get the problem fixed. I think the problem has finally been resolved (trick is to get the mortgage balance factored in, which more than one customer service rep said was impossible) but I’m still disappointed at the level of service I received. I should not have had to make so many calls to get matched up with the correct product.
September 7th, 2007 at 1:11 pm
Someone else had mentioned that in some states, it is against the law for gift cards to have expiration dates or lose value after a certain time.
I just wanted to mention that as of August 1, 2007 Minnesota has joined that list so hoard your cards all you want!
Just a little tip for your Minnesota readers.
Thanks,
Jen
September 25th, 2007 at 6:30 pm
Ahh, the question should be who hasn’t had a bad experience with BOA? In my case, they did resolve the issue quickly and with little hassle but the whole experience kinda turned me off. At 17, I opened a student checking account with BofA. It had an introductory monthly fee of $4.95 for the first six months after which it would stay a college student account but the fee would increase to $9.95 a month. For a while that was fine. Okay, now as a college student I wasn’t always keeping up with money or statements (doh!) but over a year later I noticed BOA was charging me around $20 a month. I was like huh? I called and they had moved me off my student checking account to the most expensive checking account they offered! They thought I had graduated from college! In less than two years? I wish! To be fair, I didn’t have to go to a bank with my student ID, they took care of it over the phone and refunded me the $240 immediately for the year I had been paying the highest checking account fee. In essence, they waived the checking account fee for a year for me. So good did come out of bad after all.
December 10th, 2007 at 6:05 am
[...] by banks — carry fees for various events. Some even charge to use the card. (In August, Tim shared how a gift card from Bank of America carried fees for checking the [...]
December 11th, 2007 at 5:54 pm
I had banked with B of A since 1967, when I was in high school. Even worked there in the 80’s, and reached the level of Vice President in their Information Systems group.
About 7 years ago, I was trying to close on a house I had just purchased, and went to the B of A branch in my new town in Nevada (had just moved from California), only to be told that I had to go to a California branch in order to access the $750,000 I had on deposit needed to close on the sale!
Amazing, in this day and age, that you had to go to the state in which your account had been set up to access your funds in a multinational bank!
So I drove to California. The story there was, the branch manager wasn’t senior enough to sign a check for that amount. I had to sit in the office for 3 hours while they tried to figure out how to issue a Cashier’s check so I could make the deadline for closing on my house.
Needless to say, I closed out my account the next day and have never been back…
February 7th, 2008 at 9:42 pm
American corporations are absolutely brazen in their fleecing of their customers. And it is so pervasive, it almost doesn’t pay to get upset over it anymore. I just cancelled a cell phone contract with Alltel. I called about 5 days before the end of my contract and was told I needed to call on the day of expiration, otherwise I would pay a fee. Well, on expiration day, I called to cancel and low and behold, their billing cycle starts on the 4th of every month and they would not prorate my cancelled month - I payed the entire month when I was using only a few days. If only one cell phone company, bank, utility etc would make good customer service their top priority… They would have the entire county as their customer.
June 21st, 2008 at 10:56 am
On Friday, June 20, 2008, I walked into the Parkland Branch Bank of America to make several deposits, cash a check and get my payroll out. The check that I was trying to cash was from a vendor who’d made the check out to my mother, who is a signer on my business account. She came into the back to sign the check and to show her identification.
The check was over the teller’s limit so she asked the Assistant Branch Manager, Song Degarmo, to assist her. She was asked to verify the check.
All I did was ask them to verify the check. The funds were good. The Assistant Branch Manager, Song Degarmo, explains to me that Bank of America no longer verifies funds over the phone. I ask to speak with the branch manager because I have been a customer of Bank of America for many years and they have always called to verify funds in situations such as this.
When the Branch Manager, Linda Morley, storms out her office with my check in her hand, she states, “It is obvious that we will not be able to provide you with the level of customer service that you would like. Your account is not entitled to any special treatment. I am closing your accounts.” And with that she storms over to the main doors, opens the doors and turns back to say, “Please Leave!”
Mind you, we are in the middle of the lobby and there are still customers all around. I still have yet to say anything to her. Quite frankly, I was confused on what prompted her to approach me in such a manner, and I was hugely embarrassed by her antics.
The Assistant Branch Manager, Song Degarmo, places her hand on my shoulder and pushed me towards the door. I stopped at the door, turned to the Linda Morley and ask, “Can you please explain to me what is going on? Why are you closing my account?” I was not hostile. I did NOT yell at her.
She says, “I don’t have to explain anything to you! I have the right to close an account for any reason. Please Leave. If you don’t leave I will call the police!”
I was almost in tears at this point. My mother was still there. It appeared as though Ms Morley was unreasonably hostile towards her, but that had nothing to do with me or my accounts. I said, “You have not even spoken to me and I am the primary signer on this account. I deserve an explanation as to why you are closing my account. I am not being hostile. I don’t deserve to be treated like this.”
“It is obvious that you are unaware as to how much we have bent over backwards to assist you. The bank is closed. Please leave.”
“I have been in line since 5:20. The bank closed before I got to the teller window. Are you saying to me that I am not entitled to the same customer service as everyone else simply because the bank closed while I was in line?”
“That is not what I said! You are putting words in my mouth!”
Again, Song Degarmo attempted to push me out the door. By this time, one of the other bankers was standing behind them as if she was going to forcibly remove me.
And so we left. I called the customer service number to find out why this happened. What did I do wrong? Why did she treat me like that? They said that the branch manager can shut down an account for any reason and that what she did cannot be overridden by anyone.
I have sat on the phone and poured my heart out to several customer service representatives, and spoken to supervisors of supervisors. The last one I spoke with, Tammy Wright said that she was sorry but the only thing she could offer me at this time was a sincere apology.
I spent Friday night in the emergency room because I had an anxiety attack that was brought about by this entire situation.
June 21st, 2008 at 11:44 pm
Comment #62
@jmosley1901
Your experience should be reported to your state’s Department of Consumer affairs. Also, if you have a media watch dog (TV or newspaper), I’m sure they would love to hear your story.
January 7th, 2009 at 9:59 am
Similar BofA story that also caused me to decide never to bank with them again.
I was notified via letter that they had experienced a breach in security. I was applying for a mortgage and it was critical to protect my credit rating. To be on the safe side I decided to transfer my funds into new BofA checking and savings accounts and to close my existing savings, leaving the checking account open with enough in it to cover three outstanding checks. Then I was planning to close it, as well.
I did this in person with a teller, so the level of confusion should have been low, but somehow they transferred the balance of my old savings account out of my old checking account, and the balance of my old checking account out of my old savings account. This left my old checking account massively overdrawn as I keep a lot less in checking than in savings. The kicker is that after transferring the smaller amount out of my savings they then closed the old savings account with the remaining funds still in it. Why this didn’t strike them as odd is beyond me.
So I now had an overdrawn checking account and a very low balance in my savings account, with no way of getting to the bulk of my funds because the account had been closed.
Massive headaches ensued. I began receiving overdraft charges of $40 per returned check, $120 in total, leaving the account even more overdrawn. Trying to get them to reverse the closures and restore the funds was almost impossible. I had to leave work early several days in a row to handle it in person, and every time I thought it was fixed I would find that they had made yet another mistake.
They might have kept my business had they been extremely apologetic, but tellers and even branch managers were incredibly rude. One direct quote: “You’ve got a big old mess here and you can’t expect me to fix it when you’ve come in this late in the day.” Wait, “I” have a big old mess? Plus it was a full 20 minutes before closing and I had been waiting in line for quite a awhile before that.
After all of this, they fought me when I tried to get them to refund the overdraft fees.
I immediately went to Wahsington Mutual, and have been very, very happy with their service. So far no reduction in their service level under JP Morgan. I am treated as a valuable customer, not as an annoyance.