Bad feeling about banking with the big boys
I recently had an extremely unpleasant interaction with my bank/brokerage firm. I have been a brokerage customer of theirs for over 25 years and set up a checking account when they offered that service a few years back. I was pleased with some of the conveniences they offered and had considered helping my college-aged son set up an account with them.
All this changed last week. As someone who works in the accounting field, the tax season is always a busy time for me. As I prepared my clients books, I let my own slide for the past couple of months. In fact, I have to admit I am just now reconciling my bank statements for the months of February and March. Imagine my surprise when I opened the bank statement from this major discount brokerage firm and discovered ACH debits on my account that I had not made to companies that I have no relationship with. There were three of these payments in February and one about a week ago.
I immediately called the discount brokerage firm/bank and spoke to a customer service representative somewhere in the Mid West. He said the company would look into the unauthorized debits. I was shocked. This is not the answer I expected. When a questionable charge appeared on my credit card, the credit card company reversed the charge and then investigated. Not so with an ACH payment on a checking account. At least, not this checking account with this bank.
I was told it would take 7 - 10 business days to review the case. I asked to set up blocks so these types of payments would not come through again and was told that they would do what they could but could not guarantee that such charges wouldn't occur again.
Several days later (today) I received a notice that they are "passed the time frame for all charges but the charge. All other charges you must work with the merchant to resolve your dispute. This matter is now resolved and we have closed our file."
So, that's it?? Someone else paid his or her cable and phone bills using my account and the bank is doing nothing? The matter is closed? I am out some $600. I don't consider the matter closed. I consider this fraud.
I am unaware of the banking regulations that apply in this case, as, I suspect, most people are. I have to guess that they are within their rights to close the case. Of course I will follow up with the merchants, but I don't even know where to begin. You call the phone company and they want an account number. I don't have an account number to provide because I don't do business with them.
The lesson here? There are several, I can think of. The number one lesson is to review all bank and credit cards statements immediately. Contact your financial institution if you even suspect a problem. I don't know if it's possible to prohibit all ACH debits on an account, but if so, it might be a wise idea to do so, if it's that easy for someone else to use your account number. This is what I will tell all my bookkeeping clients.
On a personal level, though, there is more to this. The form letter I received left me with the feeling that many Americans are now experiencing -- a lack of confidence and trust in large financial institutions. Personally, I am taking out all of my money from this organization, not just the banking wing, but the brokerage accounts as well. I just don't feel good about keeping my retirement, my children's college fund, or any of my hard earned savings in an organization in which no one cares if my money disappears in unauthorized transactions.
I'm thinking I might have a better chance of a more personal resolution in a small, locally owned bank. Even if the end result is the same, I am guessing I'd get more than a form letter. I like being able to call and speak to someone I know, and I can get that at a home town bank. Although I've established relationship with bankers over the years, as I act as the liaison between the bank and my clients, too often the "personal banker" at a large bank is transferred to another branch and we have revolving relationships with a series of "personal bankers."
I honestly don't expect to get these unauthorized debits reversed. If anyone out there has any advice on this, please send it my way and I'll pass it on. At least this has motivated me to make a change I have been considering, using my money to support my community. Hometown banks provide loans to their communities, thus thus enriching both the business environment and personal lives of my town and my neighbors.
Bad feeling about banking with the big boys posted by CL Goddard Financial @ 10:00 PM 0 Comments
All this changed last week. As someone who works in the accounting field, the tax season is always a busy time for me. As I prepared my clients books, I let my own slide for the past couple of months. In fact, I have to admit I am just now reconciling my bank statements for the months of February and March. Imagine my surprise when I opened the bank statement from this major discount brokerage firm and discovered ACH debits on my account that I had not made to companies that I have no relationship with. There were three of these payments in February and one about a week ago.
I immediately called the discount brokerage firm/bank and spoke to a customer service representative somewhere in the Mid West. He said the company would look into the unauthorized debits. I was shocked. This is not the answer I expected. When a questionable charge appeared on my credit card, the credit card company reversed the charge and then investigated. Not so with an ACH payment on a checking account. At least, not this checking account with this bank.
I was told it would take 7 - 10 business days to review the case. I asked to set up blocks so these types of payments would not come through again and was told that they would do what they could but could not guarantee that such charges wouldn't occur again.
Several days later (today) I received a notice that they are "passed the time frame for all charges but the
So, that's it?? Someone else paid his or her cable and phone bills using my account and the bank is doing nothing? The matter is closed? I am out some $600. I don't consider the matter closed. I consider this fraud.
I am unaware of the banking regulations that apply in this case, as, I suspect, most people are. I have to guess that they are within their rights to close the case. Of course I will follow up with the merchants, but I don't even know where to begin. You call the phone company and they want an account number. I don't have an account number to provide because I don't do business with them.
The lesson here? There are several, I can think of. The number one lesson is to review all bank and credit cards statements immediately. Contact your financial institution if you even suspect a problem. I don't know if it's possible to prohibit all ACH debits on an account, but if so, it might be a wise idea to do so, if it's that easy for someone else to use your account number. This is what I will tell all my bookkeeping clients.
On a personal level, though, there is more to this. The form letter I received left me with the feeling that many Americans are now experiencing -- a lack of confidence and trust in large financial institutions. Personally, I am taking out all of my money from this organization, not just the banking wing, but the brokerage accounts as well. I just don't feel good about keeping my retirement, my children's college fund, or any of my hard earned savings in an organization in which no one cares if my money disappears in unauthorized transactions.
I'm thinking I might have a better chance of a more personal resolution in a small, locally owned bank. Even if the end result is the same, I am guessing I'd get more than a form letter. I like being able to call and speak to someone I know, and I can get that at a home town bank. Although I've established relationship with bankers over the years, as I act as the liaison between the bank and my clients, too often the "personal banker" at a large bank is transferred to another branch and we have revolving relationships with a series of "personal bankers."
I honestly don't expect to get these unauthorized debits reversed. If anyone out there has any advice on this, please send it my way and I'll pass it on. At least this has motivated me to make a change I have been considering, using my money to support my community. Hometown banks provide loans to their communities, thus
Labels: ACH debits banking regulations unauthorized debits bookkeeping
Bad feeling about banking with the big boys posted by CL Goddard Financial @ 10:00 PM 0 Comments
