From the AP:

Bowing to aggressive lobbying — along with assurances from banks that the troubled mortgages were OK — regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.

"These mortgages have been considered more safe and sound for portfolio lenders than many fixed rate mortgages," David Schneider, home loan president of Washington Mutual, told federal regulators in early 2006. Two years later, WaMu became the largest bank failure in U.S. history.

The AP goes on to list several proposals from 2005 that were ignored. Here they are:

Regulators told bankers exotic mortgages were often inappropriate for buyers with bad credit.

Banks would have been required to increase efforts to verify that buyers actually had jobs and could afford houses.

Regulators proposed a cap on risky mortgages so a string of defaults wouldn't be crippling.

Banks that bundled and sold mortgages were told to be sure investors knew exactly what they were buying.

Regulators urged banks to help buyers make responsible decisions and clearly advise them that interest rates might skyrocket and huge payments might be due sooner than expected.

Countrywide, then the nation's largest mortgage lender, called the proposals "excessive" and claimed they would "inhibit future innovation in the marketplace." Whooooops.

AP IMPACT: US diluted loan rules before crash [AP]
(Photo: dooleymtv )

...opt-out of "courtesy overdraft fees" so that if you use your debit card and don't have enough money for what you're swiping it off, they will actually decline your card. However, you have to remember to never swipe as credit, only as debit.

Reader Jon thinks he's got it figured out. Opt out of courtesy overdraft screwing, and then ask for a debit-only card. "Voila," he writes, "you have a checking account and debit card immune to shady courtesy overdraft fees." However, since Chase now owns WaMu, I'm betting you have to already have a WaMu account for this to work.

(Photo: thekateblack)

Be sure to read our Ultimate Consumerist Guide to Fighting Back, a go-to handbook for the dissatisfied consumer. Once you've decided to go the executive customer service right, be sure you read this first so you know what to say when you call the corporate avatar of your choice.

The Consumerist Executive Customer Service Index

ACS
Adelphia
Air Tran
Alamo
Alaska Airlines
Allegiant
Aloha
Amazon
America West
American Airlines
American Express
Amtrak
Apple
ATA
AT&T
AT&T Wireless
Bank of America
Barnes and Noble
Bell Canada
Best Buy
Blizzard
Blockbuster
Blogger
Bloomingdales
Blue Cross/Blue Shield
British Airways
Borders
Busey Bank
Buy.com
Cablevision
Charter Communications
Chase
Circuit City
Citibank
Comcast
Continental
cox
Delta
Direc-TV
Discover Card
Dish
Disney
Ebay
Enterprise
Equifax
Experian
Fedex
Frontier Airlines
Fry's
Gamefly
Geek Squad
Georgia Power
Helio
Home Depot
Humana
HSBC
IKEA
ING Direct
Insight
Keybank
Lenovo
Loew's
Macy's
Microsoft (and Xbox)
Midwest Airlines
Motorola
National City
Nicors
Northwest Airlines
Norton
Office Depot
Office Max
Orbitz
Paypal
Pitney Bowes
Qwest
RCN
Regions Bank
Register.com
Ryan Air
Samsung
Seagate
Sears
Sirius
Skybus
Sony Ericcson
Spirit Airlines
Sprint
Sports Authority
Staples
Symantec
T-mobile
Target
Time Warner Cable
TransUnion
Uhaul
United Airlines
United Health Care
UNUM Life Insurance
UPS
US Airways
US Cellular
Verizon landline/DSL/Fios
Verizon Wireless
Vonage
Wachovia
Walmart
Washington Mutual
Wells Fargo

In the event you can't find the info you are looking for here, you can scan our backlog of contact info, or use Google to uncover the addresses yourself. In the event you find something we don't have, feel free to share at tips@consumerist.com.

Researched by Alex Jarvis
Last updated: 11/07/2008

We love it. It's like the Worst Company In America Contest, but for real.

September Madness [TechCrunch](Thanks, Fuzz!)

We wonder how long this WaMu Live nonsense is going to last. Hello, Chase Bank Auditorium #334,234...

I'm currently a Chase customer, but my brother is WaMu. As he was walking down the street in Brooklyn the other night, he managed to catch this picture.

That's one smart sign.

Dow Jones reports that those of you waiting to hear more about those option-ARM, "pick-a-payment" or "pay-option" loans are going to be happy:

Wachovia, like WaMu, has a troubled mortgage portfolio and faces its own uncertain future. Saddled with a mountain of troubled adjustable-rate mortgages inherited through its 2006 takeover of Golden West Financial Corp., Wachovia has seen its financial condition weaken and its stock price plunge. Former Chairman and Chief Executive G. Kennedy Thompson was ousted earlier this year.

Both WaMu and Wachovia have taken big lumps from writing a mountain of so-called option-ARM loans, or adjustable-rate mortgages that allow some homeowners to actually increase their loans' balance by paying less than the full monthly interest they owe.

Option-ARM loans have quickly become notorious for showing high rates of delinquencies and foreclosures. Many option-ARM borrowers have increased their loan balances even as the value of their homes fell, leading many to stop making payments or walk away from properties altogether as their homes were worth less than what they owed on the mortgages.

Wachovia recently held more than $120 billion in such loans, a central driver that has led the firm to raise capital and slash its dividend.

Not too long ago the CEO of JPMorgan Chase had this to say about the coming wave of Option-ARM loans: "The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building." He added that the losses on these mortgages, which were given to people with good or excellent credit, will be “terrible.”

Wachovia shares sink, down 45% for week [Chicago Tribune]
(Photo: epicharmus )

If you bank at both WaMu and Chase, your deposits continue to be insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

Here's the full FAQ:

Frequently Asked Questions:

Q. What will happen to my account at WaMu? And to my branch?
A. It's business as usual. As of September 25, 2008, JPMorgan Chase has assumed the deposit and loan accounts, and all branches, of Washington Mutual. You can continue to access your accounts just the way you've accessed them in the past: use your same branch, same debit, credit and ATM cards, same checks.

Q. Is my money safe?
A. Yes; in addition to FDIC insurance, now you're assured your bank is backed by the strength and security of JPMorgan Chase. If you have money in both banks, your deposits have separate FDIC insurance for up to six months. Come see us and we can help you review your coverage.

Q. What if I have more than $100,000 at WaMu?
A. Your money is secure and now protected by the strength of Chase. Chase assumed all deposits of Washington Mutual.

Q. When can I bank at Chase branches in my area?
A. We'll be working hard to combine systems as quickly as possible so you can begin to enjoy expanded branch convenience in your area, and we expect system changes to begin late next year. We'll let you know in advance of any changes; in the meantime, simply continue to bank at WaMu branches as you do today.

Q. Do my direct deposit, automated payments and transfers remain the same?
A. Yes. These services all continue for you without interruption or action on your part.

Q. Where do I send my credit card and loan payments?
A. There is no change in how or where you make payments; payment instructions and addresses remain unchanged.

Q. I have a Chase credit card, car loan, and mortgage. Can I make payments at a WaMu branch now?
A. Not yet! We'll let you know when you can make Chase credit card, car loan, mortgage or other loan payments at WaMu branches, or vice versa.

Q. I have deposit accounts at both WaMu and Chase. Are both of my accounts insured?
A. Yes! Your deposits are insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

Q. I'm a small business owner. What will change for my business?
A. Immediately, no change at all – bank just as you do today. As our systems merge, we look forward to bringing you innovative services ranging from online invoicing to convenient ways to help you manage your cash flow. Chase is a national leader in business banking services, and is the nation's #1 SBA lender.

Q. I have a relationship with the WaMu Commercial Group. What will change for my business?
A. Immediately, no change at all - work with the Commercial Group just as you do today. As our systems merge, we look forward to bringing you innovative services. Chase is a national leader in commercial lending and cash management solutions.

Welcome WaMu [Chase]

The New York Times, on the other hand, says that Citigroup, JPMorgan Chase, HSBC, Banco Santander (of Spain), and Wells Fargo are also interested in picking WaMu's bones clean.

It is generally accepted that the prognosis is not good.

WaMu steps up talks to find savior [CNNMoney] (Photo: James Callan )

Web Extra: What to Do About WaMu [On The Money]

My husband and I were at the Cubs/Brewers game at Wrigley Field last night. At the door we were surprised to be given WaMu promotional string backpack/bags. This was in addition to the announced promotion, Carlos Zambrano bobbleheads.

Anyway, I was thinking that since the WaMu stuff was unannounced, they may have given it out last night (and earlier than planned) due to the uncertainty about their future/name. Probably wouldn't have worked later this season or next season!

(Photo: Bucklava)

laserjobs: The way things are going the FDIC will probably end up with WaMu. So as long as you are under the FDIC limits you will probably be with the safest bank around soon: WaMu Federal.

Regulators gauging other banks' interests in WaMu [AP]

In the event of WaMu failing, the FDIC will swoop in and your deposits will be assumed by a new bank. You would still have access to your deposits as normal via ATM, check, and debit cards. There might be a brief delay while they re-establish telephone and internet access.

The worst thing for WaMu would be if a run on the bank started, vaporizing their liquidity. Then people worried about the worst happening would be in fact causing it.

(Photo: thekateblack)

He was replaced by Alan Fishman, former president and COO of Sovereign Bank. The company has also entered a "memorandum of understanding" with the Office of Thrift Supervision, which is like probation for banks, requiring it to disclose lots of info to regulators throughout the year. Killinger built WaMu into one of the nation's largest thrift banks, but then got the bank into too much of the sub-prime mortgage business and over-aggressively expanded its retail outlets. His rolling head joins a line of other recently executed banks CEOs, Wachovia's Ken Thompson, Merrill Lynch's Stanley O'Neal and Citigroup's Charles Prince.

How much severance is he getting? WSJ says:

People close to the situation said Mr. Killnger would retire under the terms of his employment contract with no extra severance benefits. According to the most recent Securities and Exchange Commission filing related to Mr. Killinger's compensation, he held 1.2 million shares of common stock as of Dec. 31, 2007, currently worth about $5.2 million. He also has $14.9 million in deferred compensation and $3.5 million in pension benefits, according to the filing.

WaMu Placed On Probation As It Ousts CEO Killinger [Dow Jones] (Thanks to Dariush!)

In March of 2008, I used a debit card on an online poker site, which happened to be a foreign vendor. I know it wasn’t wise, but I did. I had no issues at all with site, until I made a withdrawal in mid-April. A few days after that withdrawal I spotted several large charges pending on my WAMU debit card account that I did NOT authorize. The poker site used a foreign third party card authorizer and apparently they decided to have some fun with my card. I contacted the poker site and informed them of the problem, and they refused to do anything for me. The third party does not even have a contact phone number. I then called WAMU before the charges could even post, and was told that I would have to wait until they posted before the dispute could be done. After all was said and done, 15 unauthorized charges totaling $3,400 hit my account. I canceled that debit card, filed the dispute and was given a provisional credit within 5 days.

The following week, I received a letter from WAMU stating that I needed to contact them about what documentation they needed in order to pursue the dispute. That’s all it said. I called on April 29th and spoke to a CSR about what I needed to send the fraud claims department. She told me that all I needed to send was a written and signed affidavit detailing what had happened and what I had done to remedy the situation. I did exactly that and faxed it to them that same day.

I hadn’t heard anything for about a month and called the claims department. After waiting on hold for over half an hour, I was told that they had no new information.

Two more months go by. I received a letter from WAMU stating that I had not provided them with enough documentation to pursue the claim, and they reversed the provisional credit. I called them immediately and after being on hold for 45 minutes this time I spoke to another CSR, and then a manager. I was informed that they sent out a letter on April 30th, the day after I faxed my affidavit, which said I still needed more documentation. That second letter magically never arrived. They told me that it was too late and they would deny me the ability to fight these charges with the vendor. I explained to them over and over again about how I did exactly what was asked of me, and did NOT receive the second letter. Finally to get me off the phone, the manager suggested I submit a re-assertion letter to get the claim reopened, along with any documentation I could provide. There wasn’t a lot of documentation to provide, since it’s kind of hard to prove you didn’t authorize a charge online. I provided them with copies of emails to the poker site and the third party vendor demanding they credit the unauthorized charges.

Three weeks later, I am told that again they will not pursue the claim. The CSR is extremely rude to me and almost seems to gloat about me being screwed. She said, “You didn’t send in enough documentation within the prescribed deadline. Now you’ve sent in the documentation, but it’s still past the deadline.” Too bad…so sorry. I was told that I should have read the important information on the back of their notices (one of which I didn’t receive) informing me of the deadline.

Now I’m not stupid. I realize that WAMU is pre-judging me based on the fact that I dealt with an online poker site. But I believe they are breaking my rights by not even pursuing this dispute. All I’m asking is that they continue on to MasterCard and file the dispute with the vendor. I’m not asking for any provisional credit. If they would actually let this claim continue, the burden would be on the vendor to provide documentation. The vendor can not have any documentation, since I did NOT authorize the charges. I’m only asking that they follow the law. They have gotten around this by failing to send me a second notice, and never actually providing me a list of sufficient documentation on the first notice. Because of that, I missed the deadline.

I filed a claim with the Better Business Bureau. A CSR from WAMU called and left a message on my cell phone in a very haughty tone, saying that they were aware of the complaint I had made, and that they were so sorry, but I missed the deadline. They suggested I sue the vendor.

They know I can’t file a lawsuit against the vendors, since they are not in the U.S.

I plan on contacting the Office of Thrift Services, but do they actually have any clout in this matter?

Sincerely,

Rob K

OTS is WaMu's bank regulator, so yes, they do have clout. You can also try contacting their executive customer service team. Then, after you get your money back, switch banks.

Then, next time you want to play poker, consider a friendly game with your buddies. As your letter states, online gambling doesn't attract the most savory of business people. If you do have to scratch the itch, at least use a credit card, not a debit card. That way, if the account gets hijacked, it's the bank out the cash and not you.

We asked WaMu whether this was standard policy or if their letter-sending facility is having an error, and await their response.

(Photo: Getty)

UPDATE: 9/02/08: In response to our email inquiry, WaMu has said they're interested in checking out this story.

I wanted to tell you guys about my positively sexy Washington Mutual experience. On 6/01/08, someone hacked into my iTunes account, and using my debit card information, purchased two $200 gift cards, something I noticed when checking my online statement. I call WaMu immediately, tell them about the fraud, and they say they will issue me provisional credits, which they do. I then ask the fateful questions that started this mess:

"Is there anything I need to do or give you? Should I call iTunes? Do I need to investigate?"

The answer was a swift, resounding, no. You don't need to do anything. We will contact Apple and we will investigate.

I've had good luck with WaMu, so I honestly had no reason to think that this was not even close to the correct answer. I've never been defrauded before, so I assumed that I had done my part, and that if something came up, they have my phone number and the WaMu message center, so they could let me know immediately. This was incredibly stupid.

Fast forward two months and change, I'm taking a trip from LA to Chicago for my very first production of a play I'd written. I check my balance before I leave. I take the red eye, I buy food, gum, etc. I land in Chicago at about 6 AM, and crash. The next day I try to use my card. It's declined. I have a dress rehearsal in three hours.

I check my balance and the two credits are gone, the withdrawal dated for sometime between when my connecting flight left Las Vegas and when I woke up. I am now severely overdrawn. What's worse, the four things I purchased while in LA and in transit conveniently all clear in the day after the provisional credits are revoked, each invoking their own overdraft. No warning. No notice. No calls.

I go the bank, the teller tells me that the bank has deduced that I lied about the fraud, and there's nothing I can do. I throw a fit, he gives me a number to call. I call the number. The CSR tells me that what happened was that affidavits were sent to my graduate housing address on, literally, the day I moved out after getting my master's and because they were sent back returned, there's nothing he can do.

This is the first I'm hearing about affidavits, period. This is the first I'm hearing about affidavits being sent to an address I wasn't at, and the first I'm hearing about them being sent back. I pitch a fit. He tells me that I could try sending proof of my residency claim and info to a fax number, and address it to an Alex Wilson.

I fax my proof of residency, and call CS back to follow up, asking if I could get Alex Wilson's extension. I am told that Alex Wilson is not a real person. He is just a name for people to fax things to.

What?

Also, there is no way for me to follow up with him, or the office where the documents were sent. I have to be patient and wait for a letter in the mail. I honestly have no idea if any of this is true.

I should mention at this point that due to be being stranded and broke, I have missed the final rehearsal, and half of the shows. I call CS back again. I explain the situation, I ask if there is anything she can do. She notes that the investigation is opened back up, but that now I need to contact iTunes and fax WaMu proof that what I say happened, did.

What about the affidavits? What about the part where I didn't need to contact anyone? The CSR reinforced that she didn't know what I was told in the past, but this was what I needed to do now. And I can't have my provisional credit back, or the four overdrafts.

At this point, I have missed my show entirely. I call Executive Customer Service the day my flight is leaving, and leave a message. No response. I beg for a ride to the airport, and on my layover, write an e-mail to ECSR, explaining what happened. I get an e-mail the next day that is kind and apologetic, and says that this should be resolved in 24-48 hours. I celebrate pre-maturely.

I check in with her at 24 hours, she is still working on it. I check in at 48, no response. And then, at about 76 hours, I get an e-mail that diplomatically informs me that I am lying about how I was informed and guided after the fraud, and that it was my fault for moving (and I guess, by proxy, getting my masters) at the wrong time, and my fault for not having a future address at that time, despite my not having any idea what that address would be used for beyond account identity verification. It was phrased: "According to our policies, what you have suggested could never f*cking happen and you are full of sh*t."

And that, despite the fact that I faxed the required info when I returned to LA, that I have repeatedly referred to this as fraud, and not a dispute, that I have a f*cking phone and access to a message center that they use to inform me of other important things, I got the dreaded "we have insufficient information to dispute the charge with the merchant."

Not having the presence of mind to disbelieve what the debit fraud CSR says costs about 536 dollars, priceless memories, and a week and a half. Took a screenshot of my message center inbox, just in case. What other evidence do I need to start assembling so that I can nail these bastards?

-Kristin

The Electronic Funds Transfer Act, which governs debit card transactions, is pretty clear on this issue. If you report the theft of your card or your code within two business days, your liability is limited to $50. We're pretty sure that someone stealing your debit card information from your iTunes account and ordering gift cards with it counts as fraud and not an "error." Here's some more information about the law from the Federal Reserve.

With this in mind, why not file an official complaint with their regulator? It'll be valuable later on if you have to keep fighting with them. Here's how you do that:

1. Contact WaMu with a formal complaint. You can do this in writing, or by email. Keep a copy of this complaint for your records.
2. Figure out which agency regulates your bank by calling or using FDIC's Bank Find. We happen to know that Washington Mutual's primary regulator is the Office of Thrift Supervision.
3. Write a formal complaint letter to the bank's regulatory agency. Follow the FTC's instructions for writing a complaint.

   This document also has the correct contact information for the various regulatory agencies. Keep a copy of this complaint for your records.
   

   By filing a complaint, the regulating agency will investigate whether WaMu actually violated any banking regulations.

For more information about launching an EECB, click here.

(Photo: Stirwise )

UPDATE: 9/02/08: In response to our email inquiry, WaMu has said they're interested in checking out this story.

After reading on WaMu's website that it would assist distressed borrowers with loan modifications, Lori Pestana called and was told they could not qualify until their payments were 50 days late. To become eligible, they stopped paying and applied for help on Oct. 9, 2007.

WaMu told them that they could expect an answer in 4 to 5 weeks. On Nov. 13, a law firm representing WaMu sent the Pestanas a letter informing them that they were in foreclosure.

The Pestanas said they tried at least twice to determine the amount they could pay to reinstate their loan, but Harmon Law either did not call back or could not give them an amount. Another time, Harmon Law refused a $12,000 payment, because it was $3,000 short of the total payoff amount, the suit said.

The Pestanas are currently scheduled to be evicted from their home later this month and are suing WaMu, seeking class-action status for all of WaMu's Massachusetts customers. WaMu says it "fully committed to helping our customers stay in their homes" and that "foreclosure is a last resort."

Suit blames loan servicer for pending foreclosure [Boston Globe]
(Photo: stirwise )

Waits improve at IndyMac bank branches [LAT] (Thanks to Kathy!)

(Photo: zoliblog)

He called WaMu's customer service to ask where to find a branch that stayed open late and/or to request that his ATM limit be raised just for the day. The WaMu CSR wouldn't transfer him to a supervisor, accused him of making terrorist threats, and lied, claiming that her supervisor was on vacation. Yikes.

Usually I am not one to complain about customer service. I am the kind of guy who understands that everyone has an off day, and I will usually roll with it. This however mad me so mad, I felt the need to share it with Consumerist.

I recently moved from the West Coast to Florida for work. With a new job, and new apartment, I decided to make from BofA to WaMu. One of the best decisions of my life. Or, so I thought. For work, I travel in Europe, a lot. Anywhere from three days to three months. I am pretty good about making sure my landlord has my rent if I am going to be out of the country. On a recent trip, I had to stay a day longer with a client, thus arriving back into the US later then I planned. The next day my rent was due. I tried to get out of my office for a few minutes to run down to the local WaMu branch which is close to my office. Unfortunately I was unable to. I got to WaMu that day at 5:55 PM. WaMu say they close at 6:00 PM. What they mean is that the doors are locked and you cant speak with a teller or Supervisor from 5:45 PM. So, I used the ATM. I was only able to withdraw ½ of my rent. That’s fine, I’ll call up WaMu, and see if there are any open Branches around. If not, then maybe they can increase my daily limit today.

The first person I spoke with said that there no branches open, and the SHE couldn’t increase my limit. So, I politely thanked her, but asked to speak with a Supervisor. When the Supervisor came on the line, she informed that there was nothing she could do. Ok. I explained the situation to her again. Her response was “It is not my problem if you did not plan to pay your bills on time.” I have a pretty quick temper, but I kept my cool. I said I did not feel it was her place to judge how I handle my business with my landlord, and I would like the name of your Supervisor please. She gave me the name of her Supervisor. When I asked to be connected, I was informed that the Supervisor was on vacation.

Now, I didn’t think this person would give me the name of a Supervisor who was on vacation. I was shocked when she said she did. I proceeded to inform her that, this was unacceptable and I would like to speak with a Supervisor. I proceeded to inform her that if she called my office, looking for my Supervisor, I would find one that was there, and not one that was on vacation. At this point I am extremely irritated, steaming mad, but remain collected. Until she informs me that I am making terroristic threats, and she is going to get HER SUPERVISOR on the phone. Needless to say I was stunned. Instead of pleading ignorance, this CSR HAD ACTUALLY LIED TO ME.

When the Supervisor came on the line, I explained what the situation was for my original call. At this point however, I am actually pulled over on the side of the FREEWAY, and explaining to the Supervisor what has transpired from my side. I did not even care that I could not get an increase on my daily limit. I explained as calmly as I possibly could, that this CSR comments were unprofessional, rude, and inappropriate. I again explained that if this Supervisor were to call my office, and ask to speak to MY Supervisor I would make sure she spoke with one, and not be given the information for someone on vacation. I further explained that this was THE WORST experience that I have ever had with WaMu.

Total time spent on phone with WaMu customer service: 97 minutes.
Total frustration experienced: incalculable.

Total time with WaMu from first deposit to this incident: 16 DAYS.

Terroristic threats? What? From the tone of your letter, it sounds as if you might want to switch banks. Bankrate had a great tool for comparing checking accounts with local banks and credit unions.

If you're just looking for an apology, here's some executive customer service contacts for WaMu.

(Photo: stirwise )

(206) 461-2000 x 489 Laura

Rosalva Alvarez
rosalva.alvarez@wamu.net
1-800-225-5497, option 1, option1, extension 467
Fax: (206) 965-3082

Executive Response Team
Customer Relations Manager
Washington Mutual Bank
(800) 225-5497 Opt. 1 Ext. 467
Fax (206) 965-3082

(206) 377-8196, (206) 461-2000, (206) 461-6414, or (206) 461-8779. You can try asking for Ms Cindy Modica, VP of Quality Service.

CEO Kerry Killinger
kerry.killinger@wamu.net
His assistant, Wendy: wendy.cadman@wamu.net
206-500-8779

CFO Tom Casey
tom.casey@wamu.net
206-500-4201

Chief Legal Officer Stewart Landefeld
stewart.landefeld@wamu.net

President and COO Steve Rotella:
steve.rotella@wamu.net
206-500-8302

Another option is to try launching an "Executive Email Carpet Bomb." These posts tells you how.

(Photo: Whatsername)

Checking

The Wamu Free Checking acct gets 3c per swipe for Debit Rewards. The total occurred from all your swipes gets credited to the account on the anniversary date of the account opening or being converted to a Wamu Free Checking.

If you have the old Free Checking account which doesn't have debit rewards, or any other kind of checking for that matter, it can be upgraded by the 1-800 number. Filipino bankers are unable to process that request but a US based banker or supervisor can, and it will be switched within 1 bus day.

ATM's

ATM deposits can be a lot more difficult that in-store deposits. ATM deposits are ALWAYS placed on hold, not 80% of the time. First $100 immediately available, then the rest above $100 goes on hold. BIG TIP! If you want it all available, make separate deposits of $100 (if its cash you’re depositing). If the deposit is made after 3PM PST, or 1PM CST, it will be on hold 2 business days, if before, 1 business day. If it is ever placed on hold longer, that will be because our risk operations department, who review the deposited item scans, cannot properly verify the item, and they will adjust it to 5-7 bus day hold. If you do the deposit in the branch all this trouble can easily be avoided.

We CAN usually see the item deposited. Just call the 1-800 number and ask, if the banker says they cannot, ask for a supervisor. We can. If it's a cash deposit, and it's still on hold, the supervisor can remove the hold immediately if we can pull it up in the system.

Our ATMs do have a fee for customers of 3rd party banks. It is $2 in most states and is increasing to $3 shortly.

Fees

The puppy commercial is horribly wrong. The 1 overdraft/NSF fee waiver is automatic and you don’t have to call/stop in the branch to get it waived. The commercial makes it seem like we will waive all overdraft fees, and we wouldn’t be a bank that way would we.

Overdraft charges depend on state because it depends on state laws and the average market going rate of an overdraft fee as far as other competing banks go. This depends on what state you OPENED the account. For example, California is $33, Texas is $27 for the first 5 fees occurred in the rolling year cycle, then $35 for all above the 5 mark.

You can only get courtesy fee waivers from the branch the account was opened at, or the 1-800 number by speaking to a supervisor ONLY. If it’s a bank error anyone should be able to waive it. At the 1-800 number courtesies are judged from an internal checklist. The account has to be opened for at least one year, have no returned deposit within the last 90 days, or have any kind of block on the account for account abuse/deposit fraud etc. The account cannot have had a fee waiver between the time you are calling and the last anniversary date of the account opening. As long as everything checks out we go by a typical grid to determine how many fees:

$0-$3000 - gets one fee waiver (such as OD/NSF/SERVICE)
$3000 - $5000 - gets two fee waivers
$5000 - $10000 - gets three fee waivers
$10000 or more - gets four fee waivers

Fees that cannot be waived unless bank error:
$100 legal fee (when levies etc hit account)
$10 Excess activity fee (for breaking the rules of Regulation D in a savings/money market acct)
$12 Return Deposit Item Fee - because that would mean an RDI within last 90 days.

There is a little-known secret about overdraft fees too. You will only get one if your CURRENT balance goes overdrawn. If you have a deposit hold for example, the account available balance will go overdrawn but your current balance won’t, so any debit card transactions that post will not charge the account unless they take the current balance over too. Now this doesn’t work for checks or electronic debits. If the funds aren't available with the overdraft protection, they WILL get rejected based on the available balance and charge an NSF fee.

The overdraft transfer service can bite you in the ass, because it goes by your AVAILABLE balance, unlike overdraft protection. If your available balance slips the system will kick in and transfer the amount you went overdrawn plus $12 fee from your savings. Because it goes by your available balance, ANYTHING that affects your available balance will ding the service if it goes below zero. If a merchant charges you incorrectly for example, and it pends against your account and takes the account overdrawn, it will activate overdraft transfer, but if the merchant doesn’t carry through with the authorization and debit the account, you’re out $12.

Check Holds

It doesn’t really matter what the check is, it will be placed on hold depending on:
A) The amount (Anything over $5,000 is typically held longer)
B) Recent overdrawn activity
C) Recent return deposit item activity
D) Whether it is in-state or out-of-state
Nice branch managers will call the other bank to verify the check, so that they can release it all for you. It is manager discretion at the branch to release any deposit hold.

Here's some extra tips:

-All US bankers go home by 10PM PST. Supervisors after this point are all in the Philippines, and don't have as much power as US supervisors. When you call during US banker hours ALL supervisors are American.

-We will fedex a replacement debit card free within 2 business days if you say that you are traveling within a week and say your card is lost/stolen.

-If a banker accesses your account, they leave a record of their employee ID and activity. If someone is pissing you off, make sure they at least give you your balance (so they live a mark), then speak to a manager to file a complaint. When we do this, we send an email to their manager.

-Even if a supervisor doesn't resolve your situation, you can go higher. Contact the executive response team. They can bend the rules further than the above fee guidelines also.

-Other banks ATM machines will cause a $2 balance inquiry fee if you use it to check your balance. Don't do it! Just pick up the phone and call instead, it's free.

PREVIOUSLY: 36 Confessions Of A WaMu Banker

We join Todd as he attempts to report the merchant...

I disputed the charge. However, the dispute didn’t go through until March 1st. That is because I spent several days trying to get through to WaMu’s debit dispute department. I waited on hold for a total of 8 hours, including one stretch of 4 hours. It wasn’t until I had a customer service supervisor sit on the line with me that I was able to get through to the dispute department.

Once I got through, I thought everything would be okay. They sent me a form out, which I immediately sent back. I can send you my copy of the letter I sent them if you would like. They issued me a provisional credit. Since I did not hear anything for three months, and the company is fraudulent and no longer exists, I thought the problem was over.

Yesterday, I returned home at 8 pm from vacation to find my checking account was in the negative. I never bounce checks, and was shocked. I looked my account online and found out the original charge had once again been placed on my account. I was freaking out, but when I called WaMu, they said that the debit dispute department did not open up until 7am Pacific time this morning.

I called back in at 9. I waited on hold for an hour before being dropped. Once again, I had to get a customer service supervisor to stay on the line with me, and this time, someone from disputes did pick up.

I asked why I hadn’t received any information on the charge or why it was being reinstated. I was told that a letter was sent to me on the May 30th, Saturday, the same day the charge was reinstated. I have not received this letter. I was also told that in order to receive credit, I would have to provide an item description, copy of the cancellation policy, and a cancellation number. I tried to explain that the charge was fraudulent, the company no longer existed, and that I had never received anything from the merchant. The debit dispute person, who was very rude, and kept interrupting me while I was talking, said they could not issue me a credit without a product description, cancellation policy, and cancellation number. How are you supposed to provide such things on a fraudulent charge?

I have called WaMu executive customer service and left a message for Rosie. However, I have been unable to reach her. I also sent out an executive carpet bomb, but have received many of the emails returned.

Todd, its time to get out the big guns. You're going to need to file a formal complaint with WaMu's regulator.

Here's how you do that:

1) Contact WaMu with a formal complaint. You can do this in writing, or by email. Keep a copy of this complaint for your records.

2) Figure out which agency regulates your bank by calling or using FDIC's Bank Find. We happen to know that Washington Mutual's primary regulator is the Office of Thrift Supervision.

3) Write a formal complaint letter to the bank's regulatory agency. Follow the FTC's instructions for writing a complaint. This document also has the correct contact information for the various regulatory agencies. Keep a copy of this complaint for your records.

By filing a complaint, the regulating agency will investigate whether WaMu's incompetance actually violated any banking regulations.

You should also file a complaint with your state's attorney general about the scammy retailer that ripped you off. Keep a copy of this complaint for your records.

(Photo: stirwise )

"The Board believes new leadership will help to revitalize and reenergize Wachovia and enable it to realize its potential," said the excellently-named interim CEO Lanty Smith.

Ken will now join Citibank's Charles Prince, and Merrill Lynch's Stanley O'Neal at the failed CEO pool party.

From CNNMoney:

Wachovia's woes, however, have only surfaced recently. In mid-April, the nation's fourth-largest bank reported a surprising first-quarter loss of $350 million - hurt, in part, by its ill-timed 2006 acquisition of California mortgage lender Golden West Financial Corp.

Shortly thereafter, the company drew the ire of its shareholders by announcing plans to raise $7 billion in capital through a stock offering and to slash its quarterly dividend by 41%.

Thompson defended the actions at the time, saying the capital raising was done to gird the company's balance sheet against a protracted downturn in the housing market.

The news only got worse last month when Wachovia restated its losses. The company said its losses were, in fact, closer to $708 million following a review of its life insurance portfolio.

Meanwhile, it looks like Kerry Killinger, WaMu's CEO, is gonna need a bigger boat. The company said it would split the role of chairman and chief executive...which is exactly what Wachovia did to Thompson before dropping him.

Wachovia CEO out at board's request [CNNMoney](Thanks, Evan!)

After another battle with a branch manager today—who insisted that money couldn't be returned and that I needed to fill out a fraud report—I went over her head.  After a heated, uh, discussion, the main downtown Seattle branch put the $1,500 back in my business checking account.  The $7 fee was refunded a few hours later.
 
Some bad PR in Consumerist no doubt helped. Thank you!

We're not sure we posted the story in time to have an effect on the outcome, but we'll take it.

RELATED
"WaMu Presents Random $1500 Check On Someone Else's Account, Then Calls It Fraud"

[Update: WaMu has returned the money.] Bill's small business account was hit with a $1500 check written by an unrelated third party to another third party—both completely unconnected with his account. He was also penalized with an insufficient funds fee, although the money was debited from his account. Now WaMu's saying they have to investigate for fraud before they can return Bill's fees.

I received a returned check notice from Washington Mutual last week. Not unusual for a small business — until I opened it.

The check in question was a $1,500 private party check written to another private party. The check wasn't written by, or issued to, my business.

Simple mistake? I visited the WaMu branch across the street from my office and got the stunning response from the branch manager that they'd have to do a fraud investigation. I raised hell again today, and the money, plus a $7 returned check fee, still hasn't been returned to my account.

I'm considering going to go to small claims court — or swear out a theft complaint against WaMu — to get my money back. The only fraud is that WaMu or KeyBank (the check in question was written on a KeyBank account) screwed up and they're taking it out of my hide. I'm the innocent bystander.

Maybe WaMu is trying to cover its losses by randomly reassigning bounced checks to accounts that have money in them and hope no one notices.

Why can't WaMu assume the $1500 loss while they investigate what was probably a clerical error, instead of forcing the problem onto their customer? Maybe WaMu should amend their new ad slogan to "We've got your back... unless we're covering our own asses."

John found himself the proud father of a $10 fine from WaMu this morning because he exceeded 6 transfers from his savings account during a single billing period. When he called in to find out why this happened, he was told it was a federal regulation: "The representative from Wamu said there was nothing she could do and I need to better monitor my account. Honestly I just want to know if anyone else has had this problem?" It's a real regulation, John, but banks don't have to charge a fine—they can also simply warn you or not allow the seventh transaction—but then they wouldn't get to make another $10 off of you.

John writes:

I talked to the person who couldn't do anything for me and then I talked to a "Manager". She explained to me that there are federal regulations that state that a person can only transfer money 6 times in a billing cycle.

The regulation she's referring to is Federal Regulation D, and in section 204(d)(2) it defines exactly what constitutes a savings account. One of the characteristics is there can only be up to six pre-authorized or automatic transfers—however, you can make as many transfers as you want in person or via an ATM machine.
 
The $10 fee WaMu hit you with was entirely their own invention, however. A footnote to section 204(d)(2) describes what banks can do to ensure customers don't go over the limit:

In order to ensure that no more than the permitted number of withdrawals or transfers are made, for an account to come within the definition in paragraph (d)(2) of this section, a depository institution must either:
 
(a) Prevent withdrawals or transfers of funds from this account that are in excess of the limits established by paragraph (d)(2) of this section, or
 
(b) Adopt procedures to monitor those transfers on an ex post basis and contact customers who exceed the established limits on more than an occasional basis.

Call us pessimists, but we bet every major bank opts for an ex post fine in order to generate additional income. That means if you have to make more than six transactions in a given month, use an ATM machine if you can.

(Photo: Getty Images)

Our reader writes:

I work for a law firm and recently we had about a year long go around with Washington Mutual.

One of our clients needed proof of a substantial loan they had made (>$30k) via cashier's check, but could no longer find their slip stub as the loan had been made a few years earlier. She called and wrote to WaMu requesting a copy of the cashed cashier's check for proof that the loan had been made. They sent her a letter saying that the cashier's check would be sent under separate cover in 15 days. A month later, no copy.

We then sent a request on our letterhead requesting a copy (with a signed permission from the client allowing us access to the document). We received a similar letter stating we would receive a copy of the document in 15 days. Again, three weeks later (to allow for possible mail time), no check was received. We sent three separate requests, all of which were responded to with the same form letter stating 15 days, but no copy of the document ever appeared.

Finally, we resorted to subpoenaing WaMu to produce the document. We went around and around with them attempting to get a copy of the document with WaMu admitting that they couldn't find it and that all traces of the loan were gone. Later, they produced an electronic print out showing the deduction from our client's account, but not to whom the money was paid. We needed a copy of the document that reflected who had been paid. After many, many phone calls, mostly from their subpoena intake group attempting to get out of having to send someone to personally appear in court (one of which showed up at the courthouse on a trial date WITHOUT the document) and WaMu insisting the entire time that they did not have a copy of the document, a SECOND subpoena, AND threats to hold them in contempt of court, they coughed up a copy of the document.

If a law firm with the power of a subpoena behind them can't get WaMu to cough up a document in a timely manner without a massive amount of headache, I'd hate to see what the average consumer has to deal with. I'll be sticking with my credit union.

I had an interesting time last night at my local Washington Mutual.

I am getting ready to leave on a trip to Las Vegas for a friends wedding so last night I decided that I would actually go into a Washington Mutual branch and withdraw my 'bankroll'. It was about 10 minutes to close but there thankfully no line. I filled out the withdrawal slip for the cash that I wanted, approached the teller, scanned my ATM card, entered my PIN and handed her the slip. She immediately asked if I wanted a check for the amount ($4.2k) and I said no, that I wanted cash. She then yelled to the manager across the bank about the transaction. He asked; how much? She said "$4200". Keep in mind that this was not done in private but across the room at the bank, therefore letting everyone in the room know that I wanted a (fairly) large sum of cash.

It was at this time that the faux hawk sporting manager said 'nope'. He told me (still across the room BTW) that they operated on some automatic withdrawal machines and that he couldn't authorize that much of a withdrawal because other people needed to use it and that the amount of capital wouldn't cover it.

In shock I asked when they (the bank!) would be getting more capital, he said that they got more nightly. So I asked if I could come get the amount I wanted tomorrow. He said 'no' again. Apparently these machines had enough money for me but they didn't want to give it to me because someone else might need it (the bank is open for 10 more minutes).

The manager let me know that I could try a 'traditional' WaMu branch as they have 'more leniencies' with the withdrawal amount. Keep in mind that those are at least 3 miles (over 30 minutes in San Francisco) away.

I then asked the teller very plainly... "Are you saying that I can't have MY money?"

She said "yes".

Beyond mad I ripped up my withdrawal slip and left the bank. I have two out standing checks (IRS and State) with WaMu, when they clear I am OUT. I can't think of anything more ridiculous than not being able to get my money. Aren't there some rules about that?

I guess that the good thing to come of all this is that there can't be a run on the banks because even if everyone tried to get their money... the banks will not give it to you!

Thought this was something that you might find interesting!
Thaddius

Any bankers want to explain how this works?

(Photo:Stirwise)

"Nothing of this scale has happened since the Great Depression," Chief Executive Kerry Killinger said at WaMu's annual meeting. "This is the toughest credit cycle I have seen in my years in the industry."

A Loss and a Shake-up at Washington Mutual [NYT]
(Photo:Maulleigh)

(Photo: Ben Popken)

Moody's Investors Service cut Washington Mutual Inc.'s credit rating Friday and said the country's largest savings and loan will need at least $4 billion more than it expected to cover bad mortgages in 2008.

(Thanks to Doug!)

Consumerist,

I logged online to check my Wamu account tonight and I was surprised by the profanity in the "confirmation number" field.

Highly amusing, don't you think?

—Brad

I opened a WaMu checking account on Friday, February 29th of this year with a $106.00 opening deposit .I opened this account for my auto-pay setup with my university credit union. With me having to take a semester off because my parents credit didn't qualify for private Sallie-Mae type student loans ( which in fact could be a blessing in disquise) , im now 300 miles away from the said credit union . So, I deposit the exact amount of my car payment ( again, $106), then fax the WaMu account number to the credit union.

The next Tuedsay, March 4th, I call the WaMu automated system to check my balance.
Which claims , both in 'Available Balance' and 'Account Balance', that I have $106.00 in the account.

Now frantic that the credit union made a mistake, I call the credit union. The CU representative tells me, much to my surprise, that the payment was recieved for $106.56 (doh ! ) from WaMu and that all is well. At least on their end.

So, I give WaMu the benefit of the doubt. Aware that I am .56 short , and fully expecting a fee because of it, yesterday (the 6th) I deposit $140 into the account , so as to cover the NSF fee and the next months car payment. Imagine my shock when I see the balance slip showing $246.00 in the account!

So I ask if theres a pending withdrawal on the account. The teller shows me her screen, which shows the $106.00 opening deposit, a $32 NSF fee, a $32 NSF fee reversal, and the $140 deposit I just made.

To boot, the WaMu teller is confused herself, wondering why theres a negative fee (and reversal)when , according to her screen, I never entered the red.

The real, logical reason this is the case is because the automated withdrawal left me .56 cents short ,which triggered an NSF fee, then was reversed automatically ( Your first NSF as a new customer with WaMu is forgiven,so not all fine print is bad ).Except none of this activity , according to WaMu's computer system, ever happened.

So the senior branch sales,er manager tries and fails to explain why their system can't tell me how much money I REALLY have.

I ask again, why is it showing, both in 'Available' and 'Account" balances $240.00 when I know for fact that its $106.56 less. 30 minutes later, the closest thing I heard to an explanation is that, because I opened my account on a Friday, nothings gonna post until maybe Saturday.(Never mind that Saturday is NOT a business day).He then amended his statement by saying that by Thursday night , it should all be updated.

Not wanted to be late for work, I bid a calm goodbye.

This morning, I call the WaMu automated system this morning (Friday, March 7th) and its still 'lying' to me.