Recently, my bank merged with another small bank. Until then, it had been under the same ownership for about 150 years. This week, we received a mailing from the bank telling us how things were going to change. Most notable in the changes was the paragraph that mentioned that if I want to avoid a quarterly service charge of $10 on my savings account, I should see to it that my balance never falls below $300.
I know I'm old-fashioned. I know I'm tighter than paper on a wall. I know that I have oppositional-defiant disorder in my bones, but does this seem like hostage-taking to anyone else? I was under the impression that I was loaning my money to the bank when I put it in a savings account. I was also under the (bizarre) impression that the money was mine, to do with as I pleased. Now it seems that I was mistaken.
Of course I'm free to take my business down the road. I remember opening the savings account and having to restrain myself when the new-accounts representative informed me that my account would pay—no kidding—1% interest. I thought it would be rude to laugh at such a laughable rate, even considering that credit-card debt interest runs 15-30%. I held my peace. Later I discovered that my daughter's account pays even less—1/2%. Now they tell me that the first $300 isn't really mine, unless I want to pay them to hold it for me. Is something wrong with this picture?
The bank is not the only business in town with the our-way-or-the-highway attitude. My daughter needed a new cell phone, and in the process I learned that I could renew my contract with the company for 2 years, or do without the cell phone. Option 3 was to buy it at retail, about $230.
A year ago, I got a gas bill that was, frankly, shocking. One month the bill was $60. The next, it was five times that: $300. The money was not in the budget. I called the company, frantic. They told me they'd be happy to make arrangements. The arrangements were that I could pay as much as I could now, and pay the rest in a month. No matter how I tried to explain that I wasn't going to be able to squeeze an extra $240 out of my budget in a single month, the terms the CSR (customer service representative) dictated to me were the only terms they would accept. Eventually my gas service was cut, and I had to post a substantial deposit—which they still hold over a year later, and never mind the first 13 years I had service here without a glitch or a late payment. And interest on my money? Ha! fuggedaboudit.
Hospital collection departments make the same kinds of impossible "deals." You can accept their terms or allow them to report you as a deadbeat to the credit bureau immediately. If I was a deadbeat, I don't think I'd mind so much. What really bothers me is that they put me in the position where either I lie, saying that I'll obey their terms, or I tell the truth and get punished. I know there are lots of deadbeats out there. I understand that a few may spoil things for the many, but it seems like my integrity is un-salvageable in such instances. This does bad things to my psyche.
I'm having trouble understanding how these companies can make these kinds of policies and get away with it.
Maybe other people are better at juggling than I am. Do they whip out the plastic when things go wrong and pay the devil later? Do they just make more money to make ends meet, like mice in wheels running faster? I've always been a big fan of living within my means, but as prices rise, it gets harder, and as my means shrink, my quality of life is beginning to suffer.
What's it like for you?
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Comments: 17
If not... well... you got the Devil you asked for, and he's looking for payment.
Re: your final question - We do put it on plastic when bad things happen. I happen to know what my card's interest is and keep that in mind for when emergencies happen (which they do. All the time.) Then we start working on how we're going to find the money to pay it off. Making more money is usually not an option so it's usually finding out what we can do without for a few months. (Think of how much you'll save if you choose not to use your car on your days off. You don't NEED cable TV. You also don't NEED brand name clothing or food.)
Janet--Philly isn't in Texas, is it?
Laura--don't have cable. Don't eat in restaurants. Don't buy fancy clothes. I'm a pay-as-you-go kind of gal, which is why this bothers me!
10
I do, however, remember the really hard times. Eat or pay the electric bill? Chose the former, and spent a few hot nights (summer in Texas) before re-connecting the service and paying all the exorbitant fees.
I have never understood the logic that dictates if I don't have $200 for an electric bill, what makes you think I'll have $500 for the bill, re-connect, etc.?
It is what it is, though, and not likely to change. Municipalities and power providers all have monopolies, and that is what we deal with.
Banks are different. I, too, am surprised when they are so callous. I simply take my business elsewhere, though. After all, there's dozens to choose from anymore. I have changed three times in the last 5 years. My latest I have had for 3 yrs. now, and I like them - so far. LOL
As for collections - here's an excellent website for information, help, and tips:
www.bendover.com
Yes, the guy's name is really "Ben Dover". Poor fella. He must have been teased so as a child.
I've used his information numerous times and it has never failed me.
Good luck!
If I want to write someone a check, they have to deposit it through their bank or else lose some of the money I'm paying them to my bank. It just doesn't seem right. It seems like manipulation.
I must respond to your last comment first. Just this week my home page reported that "stocks rise on inflation news." Further reading revealed that reported inflation is low. As my grocery bill and electric bill continue to rise exorbitantly, I find this news mystifying.
My electric company has been paying attention. They promise me lower rates but I must sign a "2 year contract" like I have with my cell phone company. But they're not giving me anything like a new stove or refrigerator like the mobile phone company does.
As far as banks go, they are the best at this game. When ATM's were first introduced they had to coerce people to use them. They charged few fees and those they did charge were low. Once everyone was addicted to the convienience of ATM's, they started to impose more and higher fees. Apparently, all the savings from needing fewer tellers evaporated rather quickly.
Where I live, they are building a new bank on every corner. Several of the new arrivals offer free checking and savings accounts with no minimum balance. You should shop around.
PS: I do live in TX.
Like suggested above try a credit union or other bank like mine, Washington Mutual, that doesn't charge. (I don't think they are out in Texas though, there might be another with a similar deal)
My credit union requires that you keep $50 in the account at all times. That doesn't work for me, so I closed it. Shop around, that is the great thing about competition!
I have a question though, why did your gas bill go up so much!!??
I probably will change banks, but this is a hassle. When I called about another change that will cause me problems, I got the "The policy of the new bank is. . . " followed, of course by "we don't make the policy." When I mentioned that they'd be losing my business because of their refusal to even try to accomodate me, the answer was, "That is your privlege." This tells me that they don't care about my business, and that makes me wonder how they can stay in business.