Time To Tell It Like It Is...
First, I will tell you right up front, that as a real estate agent, my business depends on banks for mortgage loans. Without mortgage lending, the real estate business would die. Second, the following represents my experiences, and I relate them to you in the hope you can protect yourself, if and when necessary, from what I believe are predatory business practices.
A couple of weeks ago, I called Citibank and asked the credit card department if they were implementing the banking industry's now common practice of reducing the available credit line to the amount owed for my account - which essentially changes a credit card account from a revolving line of credit to a simple declining balance personal loan (and makes the account useless for new charges.) I was assured they had no plans to do so. Looking back on that conversation, I am reminded of the old song: "Liar, Liar, pants on fire."
I just received a notice from good ol' crappybank (my new term of personal endearment for that great financial institution) that they were not only reducing the available credit on the account, but also increasing the interest rate on the unpaid balance to 30 percent. No, that is not a misprint, I'm saying THIRTY PERCENT. (And to the odd bank employee purusing this article - no, I have never missed or been late on a payment - ever.)
Were these actions due to my previous phone call? Did my efforts to communicate my concerns and questions as a long term - over 15 years - customer initiate a targeted assault to penalize me for daring to approach the mighty giant? "Oh no," the customer rep assured me. The action taken by crappybank was not a focused attack on me personally. It was a general action by management (whoever that is) to "re-align the financial responsibility of the bank to it's customers." (whatever that means).
I don't believe them. My efforts to better manage my financial future obviously angered the great and omnificent money wizards that occupy those gilded and granite accented offices that reside alongside the lesser gods of Greed and Deception.
I began to wonder...if I had been treated this way by a restaurant, would I continue to eat there? If crappybank were a auto dealer, would I buy another car from them?
The banking industry is on a rampage. And their own customers have become the enemy. And before you write off my ranting as resentful venting, I would suggest you consider the following suggestions as a defensive posture against policies and actions by any and all financial institutions who either have control of or the responsibility for your money:
1. Separate your money from your debt. If you have a savings/checking account with the same bank that provides you with a credit card, keep the accounts open, but move all but a minimum required balance to another bank that is not a financial partner of the institution that issues your credit cards. If for some reason, you fall behind in payments on a credit card, and you have money in the bank who issued the card, the bank may simply debit your account for the back payment(s), including penalties and interest. We have received phone calls from several clients who have found their bank accounts drained without notice because they fell behind on their credit card payments. (Don't think it could never happen to you - three years ago, these clients were financially sound, had high-paying careers and never thought they would be in their current situation.)
2. Don't automatically accept new terms and conditions from any bank that you don't agree with. Just because you've had a "relationship" with a bank in the past, that doesn't mean you should continue it based on history alone. In my opinion, banks no longer measure the value of their customers on "long-term" relationships. In fact, very little if any consideration is being given to past business or future profits potential. They are looking at what's on the table RIGHT NOW, and how much of it can they move to their side of the ledger.
Okay, I'm sure by now some of you may think my protests are too strong. But ask yourself this: How would you feel if I decided to raise my commission rates to 30 percent? And that brings me to my final question: If we wouldn't consider tolerating such behavior from any other businesses, why do we put up with it from banks???
Posted at 02:15PM Nov 17, 2009 by Jill Reid in General |
