For those who aren’t familiar with my recent financial saga, I’ll give a quick recap. For the full story, click on the links below.
August 27 – I deposit an escrow refund check from Taylor, Bean, & Whitaker into my Chase checking account.
August 29 – The funds show as available, so I transfer the money to my ING Direct savings account.
September 3 – The check from Taylor, Bean, & Whitaker bounced. Upon further investigation, Taylor, Bean, & Whitaker is in trouble and the bank that drafted my check has been told to cease & desist operations. 8 transactions come through my Chase checking account with insufficient funds. I talk to two different representatives from Chase, each telling me a different amount that my account will be charged in fees. The supervisor tells me I’ll be charged for 6 transactions at $25 each, and she’ll credit back $70. That’s what I plan on. I also contact TBW, who say a new check should be in the mail soon.
September 4 – Chase charges me a total of $204 and credits back $70. One more transaction goes through with insufficient funds, because I’m charged more than I was told I’d be charged. I talk to a 3rd representative from Chase, who tells me that I’m being charged $34 for the first 6 transactions, because I’ve had insufficient funds in the past (which is categorically untrue). I also fire off (nice) emails to three Chase executive officers. As of yet, I have not heard back from them. I call the FDIC, who seem to have no idea what is going on with TBW and the escrow accounts. They take my info and say they’ll get back to me.
Talking to Chase Bank Personnel in Person
Yesterday, September 7, I took my kids into our local Chase branch to see if they could do something for me. After giving a brief explanation to the teller, as well as a copy of a newspaper article explaining what happened to TBW and the bank that issued my check, I was nicely told to have a seat and wait for help.
After a few minutes, I talked to a Personal Finance Rep about my issue. She was very kind and sympathetic, but said I would have to talk to the people at the actual branch that my account resides. She gave me a couple of names and phone numbers for the Roseburg, OR branch and sent them an email to ask them if there was anything that could be done for me. She told me that it’s up to the individual branch as to how many charges they can reverse, because it’s the individual branch that takes a loss when reversing charges.
When I got home, I called the Roseburg branch. I was told by the assistant manager that there was nothing that could be done. I asked to talk to the manager. The manager called me back and said that she couldn’t do anything, but she would forward my information on to the district manager. Finally at 3:30 yesterday afternoon, the Roseburg manager called me back and told me that they’d credit back another $70 for a total of $140, and that’s the best they could do. I thanked her, checked my account, and the money was there.
The Bottom Line on the TBW/Chase Fiasco
- I was charged $238 in insufficient funds fees for 9 transactions.
- I was charged at $10 NSF fee for the escrow check that didn’t clear.
- I was finally told that in Oregon, the fees are $34, not $25.
- Chase credited me back a total of $140
- My total loss out of pocket is $108.
My Final Thoughts on This Experience
I’ll save an in-depth analysis for next week, when I put together a series about finding a good bank and watching out for bank fees. However, I do have a couple of thoughts.
First, I’m grateful that I’m only out $108. I don’t like it. I don’t like that I was initially told that I’d only be out $80, and Chase didn’t follow through on what I was told. But they didn’t have to cover any of this, so I realize I’m fortunate.
I’m not grateful enough to remain with Chase for my banking. After experiencing these awful fees and Chase’s inflexibility first hand, my heart goes out to people who have to deal with this and don’t have any type of cushion. In my opinion, their fee structure is very predatory. I can easily see how someone with no emergency fund could have their life completely messed up if this happened to them. I’m not talking about someone who recklessly bounces checks. But someone like me who incurs these fees through no fault of their own. It’s inexcusable, again, in my opinion.
The newspaper article I found said that Platinum Community Bank was finally seized by the FDIC and replacement checks should be going out soon. Hopefully I’ll have my $1200 in escrow funds in a week or two, and I can go about the business of moving my checking account.
Lest you think that all banks are as inflexible as Chase, tomorrow I’ll be posting a story similar to mine that took place at a different bank…with much different results.
So what do you think? Am I doing the right thing in changing banks? Should I have kept fighting for that last $108?
Recommended For You:
- The Scare of My Life, and Why Budgeting is Important
Where Should You Keep Your Emergency Fund Savings?
Seven 1099 Forms that You Should Watch For this Tax Season- Don’t Spend Spare Change
- Another Bad Customer Service Horror Story: LunarPages
- How to Budget with a Variable Income
- The Non-Update on My Escrow Refund
- Start a Christmas Savings Accounts with SmartyPig
I would definitely get the heck out of Chase. Any of the big banks are nothing but trouble. Find a good, solid local community bank or a credit union. And I would be going after the people that issued you the bad check for all of the fees you incurred because of their bad business practices. They can’t possibly tell you that they didn’t know they were going under when they issued you the check. That’s insane.
Good luck with the next institution! And thanks for sharing your ordeal so we all know what to look out for…
I used to work for Bank One in the dept that returned NSF checks. There were a lot of checks that got returned! However we also got a lot of calls from branches asking us to specifically not return certain checks & to run them through again or the next day. We did. It was good service & retained customers.
I believe my job was replaced by a machine that doesn’t care because it’s a bank & money is all that matters now. We’re all just numbers to our banks and businesses we interact with.
While yes, it’s not Chases fault the check was bad, personally I think Chase should have put a longer hold on the check to make sure it cleared. It’s good practice to give any paper (not ACH) item over 500-800 10 days to clear. I’d change not because of the money but because they didn’t protect their customer & that’s part of a bank’s job.
I just changed banks a few months ago because of stuff like this & I haven’t regretted it. I keep separate bank accts for different things & all of them are @ credit Unions or local banks now.
Liane is the only person on here who doesn’t seem insane to me. It’s not Chase’s fault that TBW bounced a check. I mean can you imagine how many bounced checks they have to deal with a day?
I am glad that you got the district manager’s attention! Normally when customers talk to ours they get more refunds. :) Of course, it also helps when you are not rude and a jerk. People are more willing to help you then. I am glad you got more fees refunded, Lynnae!
Yeah, I believe in persistence, but not rudeness.
I hope you don’t think I implied you would ever be a jerk! I meant that I knew you would be polite and I am sure that helped you out. :)
I had a customer SCREAMING at me today about her overdraft charges. Not once did I get loud with her or rude. Needless to say, I also didn’t refund any of her charges. ;)
Nope. I was just agreeing with you. It’s important to be polite, because you generally don’t get the results you want when you’re rude. :)
Sorry you got screamed at. I wish people would understand that the people who take complaints aren’t the people who make the policies.
YES, for god’s sakes, change banks. Why would anyone reward a bank like that by continuing to give them their business? It’s beyond me.
I think you should consider asking Taylor, Bean, & Whitaker for the $108, since really, the fault does lie with them. Chase should have probably put an extended hold on the check originally, and you wouldn’t have been put out at all, but TBW didn’t come through originally. Bank customers need to know that holds are put on checks for their protection, such as in situations like this. I work in a bank, so I know.
Hope your next financial institution works out for you.
Keep fighting for the 108.00. Change banks ASAP. Definitely let Chase know about your blog, AND write your congressperson – heck write Obama too. I think it is crazy that you’re stuck holding the bag for this.
They held the check for a day before they released the funds.
Change banks and mention that your readers on your blog are curious about this.
I think it is TERRIBLE. They held the check, then released the money–I thought that is the purpose for holding the check for several days (Didn’t you say that they did). It seems like it is THEIR fault for releasing the funds when they weren’t really there.
First off, I definitely think you should change banks. They made $108 off you this time and now they’re not going to be able to make anything else off of you ever again. In the long run, they’ll be losing a whole lot more than $204 and it’s their own fault.
Second, the banks are all in hot water recently and I would consider writing a local congressperson to let them know what happened. I don’t think anyone would like to know how a bank left a customer holding the bag for a failed institution’s bad check given the amount of bailout money passed around recently.
I’ll address the question as to why I’m not at a credit union. We have a credit union here, and I actually had a savings account there at one time. But a few years ago, they changed their fee structure and started charging exorbitant fees. A lot of people left at that time, including me. Not to mention they only have one star on bankrate’s bank rating system.
Our credit union isn’t a good option, though I will admit that if you have a good credit union, it’s the way to go.
We opened an account with Chase years ago, when it was still First Chicago here, because it was the only bank set up with direct deposit for my husband’s paycheck (I did say it was years ago!) Back then it was local, and branches were plentiful. Now, it’s global and soulless. Not only do they charge exorbitant fees, they’ll charge you AGAIN if their fees push you into overdraft!! In the blink of an eye, and even with a time stamp on an ATM deposit for proof of deposit (I’ve tried arguing that one), you’ll rack up a hundred dollars in fees. We use a local credit union now.
We are very happy with our credit union. I’ve been with them since before hubby and I got married17 years ago. There was one time when we had insufficient funds. (I think we made a subracting error or something.) The credit union staff called us, and told me about the error. They said if we could get them the balance of that outstanding check by 5:00, we wouldn’t be charged all the big fees.
The point is, they went out of their way to help us out. They could have just laughed all the way to the bank. (Pun intended.) But their concern is with their customers.
My advice? Look for a good credit union where you are a name and not an account number.
I’m a big believer in smaller credit unions – mine is fabulous (Citadel – I think it’s local here in PA). i would be out of Chase so fast and would bad-mouth them to everyone I know! The saddest thing of this whole ordeal is that yours is only one of dozens of stories I’ve heard recently about the total lack of customer service, not just in banking, but in ALL industries. Something is wrong somewhere…….
I admit I am curious as to why you aren’t at a credit union? I’m also with Chase, and have been fortunate not to run into problems. I’ve been with them since before National Bank of Detroit merged with them.
National City is one that I’ll not deal with again because of their fees. Predatory is the word for it!
We’re with Chase and have been lucky not to have dealt with this. Hopefully everything does get sorted out soon! I read this today and thought of your predicament: http://www.nytimes.com/2009/09......html?_r=1
I applaud you for fighting to get back what you did.
Definately I would change banks. Why would you stay when you know how they do business? I am sorry for your loss of $108 cause that ain’t chickenfeed. Bless your heart……….you have pointed out things to make us all think.
Wow. That really, really rots.
We ended up being Chase customers when Washington Mutual was bought by them. I’ve been dragging my feet about switching, even though I’m really not happy with the change. Thanks for sharing your story with us. It’s time to start researching my banking switch.
You are definitely doing the right thing. As you said, their fee structure is predatory. And this is still a free market. There are plenty of other options. Don’t let these people profit off of you further.
Change banks, make sure you tell Chase why you are leaving and remember that although you were “lucky” it was because you stuck at it that you got a refund. If it were me I would leave it now, but my DH would stick on it until he got it all back!
Change banks. . .and in the process of closing your account at Chase mention your blog and the number of readers that have read about your experiences with Chase. You might also mention that the best form of advertising is “word of mouth advertising” and what kind of advertising does Chase think you will be doing.
Yes, you’re right to change banks.
You have no personal obligation to Chase — or any service provider — to stay with them when their rules are more important than their customers.
I also had a similar situation a couple of years ago — with very different results. But I won’t steal your thunder. :>)
Like SingleGuyMoney said, considering how hard you’ve fought and how much time you’ve already invested in this process, I wouldn’t worry about the remaining $108. Plus, there’s always the slim chances that your e-mails to Chase executive officers might result in something (but I wouldn’t hold my breath).
Once things are squared away, I would definitely change banks. In fact, I’d look into local credit unions that you are eligible to join. They seem to do a considerably better job with customer service than banks. Another option would be opening an ING Electric Orange checking account, but that really depends on how comfortable you are with not being able to go to a brick and mortar bank when necessary.
I think you fought pretty hard to get as much of your money back as possible. Good job on just not rolling over and letting them take advantage of you.
YES. I would move your accounts as soon as you get everything cleared up. Chase is a very large institution and it seems like the larger the banks get, the more they forget about customer service.