He writes:

Today I went to wamu to deposit money from checks and cash to pay my property taxes in Los Angeles. So I fill out my depositing paper and I write the total of several checks and my cash. Yet when I go to the teller I only give them the checks and I forget to give them the cash.. I don't notice at the moment that I still have five benjamins in my shirt pocket until about two hours later when I notice the bills. Now I have a bank account credited to an extra 500 dollars and I don't know what to do. Can you help me out with suggestions? Can the bank track down who has an extra $500? I normally don't like doing shady business but in a time of recession every penny counts.

Thank you for your help.

You're going to be caught, plain and simple. Go back and speak with a manager. Explain what happened, and hand over the money. You'll earn a small bit of good will, but more more importantly, you won't be, you know, stealing.

(Photo: knightraven)

I have a major problem going on with my WaMu credit card. I had thousands of dollars fraudulently charged in California and now they are saying I owe this money because the call came from the telephone number associated with my account. Do you have any advice? I just don't know where to start. Each time I try, I hit a dead end.
For instance, I've tried to get the telephone records to prove the call was not made from the phone number on the account because this is what WAMU requested from me before they will ever reinvestigate this case with there fraud department. The phone company will not release that information without a subpoena. I've gone to the police but they say there is nothing they can since the crime happened in California. Please help me if you think there's anything I can do im at my wits end.

This is a credit card but they did used a pin number to withdrawal cash from the card in addition to using the card for purchases at Target. The charges happened around November 22 and I reported them as fraud to WaMu in December when I saw them on my statement. It took about a month to process the fraud investigation and they took the charges off my account for January. This month I got a letter claiming I am responsible for these charges because, according to their records, the pin request to withdrawal cash was made from my parents number in Arvada, which is the number on the account. All these fraudulent charges were made in California. My guess is they had my information and made the call from a some type of web site that disguises the actual number they are calling from and makes it look like it's coming from another number (my parents' number in this case).

I called executive customer service and they would patch me over to Rosita saying she couldn't help me but I explained my case to them again, asking to l re look this over. They said they would call me back in two days and its been about two week with no call so I wrote this letter and send it with my last bill:

"With reference To card number ending in

This is to inform you that I have no intentions of paying any charges, interest or penalties incurred in California on my WaMu visa. All these charges occurred over a 2 day period. November 23-24, 2008. The card was and is in my possession. I live and work in Colorado including the dates in question. I have never requested nor used a PIN number. How could this have ever been verified by a phone call? I do not know anyone in the Los Angeles area.

Since August 2008 I have not used that card at all. This is to be reported as identity theft, already reported locally. You as a creditor are entitled by law to report to the collections agency of your choosing as identity theft.

Enclosed is payment in full for all charges for which I am responsible including current accrued interest, consider this my stimulus gift to your troubled institution.

Why did this occur the Monday after your November 21. 2008 layoff of 1600 employees? Certainly your new owners, Chase, and Obama USA, need to be apprised of your sloppy security measures as well."

I'm betting that the takeover has something to do with the WaMu's non-responsiveness. A should try kicking this up the CHASE corporate ladder. For privacy reasons, Chase, which owns WaMu, declined to comment on A's case, but said they would look into and have someone get in touch with A.

(Image: Elton Lin)

Oh, right. Chase.

I am a former WAMU customer that has been swept into the Chase empire. I still have my WAMU debit card. Did some freelance work last week and received a personal check for $200 that I attempted to deposit into my account, by way of a Chase ATM.

I put my card in, entered my pin and looked for the "Deposit" option. There was none. I tried canceling and entering my information again. No "Deposit". I did the same thing with the other 3 ATMs there (I was at a Chase branch, after hours), same thing. No option to Deposit.

I drove to the next nearest Chase branch and repeated the process at their 3 ATMs. No option to Deposit.

The next day, Friday, I went into the branch and explained the situation to a teller. She said that was odd and had a look at my account. She explained to me that even though the transfer of account numbers was complete (from WAMU to Chase), and I could use my card to get money out of a machine, I can't use the machine to put money INTO it. I would have to come into a branch to deposit checks until SEPTEMBER, when the acquisition is complete.

She mentioned, if I wanted to make my life easier, I could open a Chase account now, get a Chase card in 2 weeks, deposit money into that account via the ATM, then wait for it to clear, then transfer the funds to my original account. Yes, to make my life EASIER.

I told her No, I rarely have personal checks. My job is direct deposit. Can you please just deposit my check?

She said, sure. Then called over her manager.

Apparently, at the branch, she couldn't even deposit the check into my account. (I had plenty of funds to cover it). But this is what they could do. They would cash the check, turn the $200 into a cashier check and send them both to their processing plant. When the personal check cleared, they would deposit the cashier check into my account. I asked the manager how long that would take, and he said it could take up to FIVE DAYS.

I still have the receipt from this tomfoolery and yet to see the funds in my account.

This is not convenient. Oh, Washington Mutual, how I miss you.

Look, I know that massive account changeovers are hard, and that this merger didn't have a lot of planning behind it, but, seriously, not letting people deposit personal checks? They're falling out of use, yes, but they're still rather popular.

(Photo: hodgsons)

UPDATE: Actually, this is just the second conversion. The third and last conversion will happen in the fall.

(Photo: mr.hodgson)

Former Washington Mutual Cardholders Getting Snagged By Shifting Due Dates At Chase [Credit Matters Blog] (Photo: kilgore)

ATM DANGER BARED [NY Post] (Photo: Paul Lowry)

Chris writes:

As a Washington Mutual credit card holder, I just received a notice from Chase about upcoming changes to my account. Most of it is fairly innocuous, and primarily indicates that account numbers won't be changing so any automatic payments that use this account will be unaffected. They did slip one sneaky little gotcha in there, and while it won't affect me I figure you might want to inform your readers. Paragraph four states:

"If you are enrolled in automatic payments to your credit card with a fixed payment amount (e.g. $300 monthly), effective March 6, 2009, your automatic payment will be changed to your monthly minimum payment due."

That's a sneaky little change that will hamper anyone who is trying to pay their cards off early; since the next ice age will hit before someone paying the minimum payments will finish paying off their card.

If you don't like the new terms shown below, you have until February 20 to opt-out.

(Photo: dooleymtv)

He says they were very intimidating and said they were undercover cops and needed to "verify his identity," and made him give up his his ATM card and PIN. When they left he called WaMu to cancel the card but they had already taken out about $320. Per customer service's instructions, he filled out a request for a refund due to the unauthorized use of your card. By law, you're only liable for the first $50 if your card gets stolen and you report it right away. WaMu denied his request, three times, because he had given the muggers his ATM card and PIN, thereby "authorizing" their use of his card.

When travel blogger Chris Eliott contacted WaMu on this guy's behalf, they said they won't give a refund because he didn't file a police report at the time. As if you ever needed another reason to never give anyone your PIN code, here's one more.

Roman thieves impersonating cops confiscate student's debit card and steal €250 - now what? [Elliott] (Photo: crlarkin)

WaMu Cardholders Won't Be Orphaned: Can Convert And Combine Existing WaMu Cards With Chase In March [CreditMattersBlog]

From the Daily Herald:

Washington Mutual, better known as WaMu, worked furiously to open about 180 branches in 2003 to 2004, but then closed about 60 of them over the last two years. WaMu then became the largest U.S. bank to fail and was scooped up by JPMorgan Chase last September.

The current consolidation will merge Chase and WaMu branches that likely are across the street or down the block from each other. Customers should continue using their WaMu checks and debit/ATM card and their same account numbers, even if their branch is consolidating into a nearby Chase branch.

By Jan. 27, customers could learn whether a WaMu branch is affected by going to www.wamu.com, clicking on "locations" and entering their WaMu branch location.

WaMu branches to close [Daily Herald]
(Photo:knightraven)

Kevin wrote an EECB to WaMu asking that his card be reinstated, after a customer service person told him it had been closed because he was a security risk. He cc'd us, let's listen in...

... I have been going through my mail and have discovered that Washington Mutual has decided to cancel my WaMu MasterCard simply because I have not used it and do not owe anything. In essence, since you haven't made any money off of me in the past year, you've terminated our business relationship.

Surprised by this, I called up your customer service a few minutes ago to inquire about the cancellation.

Please imagine my surprise when your customer service agent explained to me that I was seen as a security risk because I had not used my card in a year. Yes, that's correct, if I'm not actively using the card and therefore taking out more money than I can pay back, I'm a security risk.

According to Bankrate's "Dr. Don," a "security risk" isn't exactly what WaMu thinks you are. What you are is unprofitable and hard to predict.

Having an account closed for inactivity is a risk when you play favorites with your credit cards. It's a business decision for the lender. The card provider had an obligation to make an unsecured loan to you at any point in time.... You never took them up on any part of that offer, so they closed the account. It makes perfect sense from the lender's perspective. It freed up the capacity to extend credit to another cardholder that might actually make them some money.

As far as your credit score goes, there's not a lot you can do about your credit history shortening — but if you're concerned about your utilization ratio (how much available credit you have compared to your debt) — you can apply for another card, or ask the your limits be raised on the rest of your cards. Just make sure to use them once in a while. For more information, check out this article from Bankrate.

Good luck.

(Photo: stirwise )

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)

PREVIOUSLY: 10 Banks That Could Be Next To Go Under (Photo: knightraven)

WaMu CEO: 3 weeks work, $18M [CNNMoney] (Thanks to Erik!)

ANNOUNCER: The uncertainty of getting a home loan made Paul irritable.
Paul pops child's balloon.
ANNOUNCER:Then he went to Washington Mutual. Thanks to their flexible lending rules, he got quick approval. Now he's always in a GREAT mood.
A series of horrible things happen to Paul, but he remains cheery.

"Flexible lending," there's an understatement. Full video below.

[via Wall Street Fighter]

As a banker with 20 years experience in the industry and veteran of about 8 takeovers throughout the years I can give you the scenario with estimated timeframes.

DAY 1 THROUGH 3 MONTHS
Nothing changes, you keep writing your same checks. You get the same statement in the same format. You log in to the same website address for internet banking. Maybe you see some new faces in your office from the "Takeover" bank (in this case JP Morgan Chase)

3-6 MONTHS
Few changes, mostly minor. You order checks and it has the new banks name on it, maybe new procedures for sending wire transfers or making loan payments. Half of the staff at your local branch has quit or been "re-assigned" elsewhere. They start changing the signage outside the office and get new brochures, but your accounts stay the same.

6-12 MONTHS>
You get notice that the format of your checks will change in a few months but you still can use your old checks for now and you might get assigned a new account number or given a new format that adds or subtracts digits. Some freebies you used to get with your account have disappeared (ie. you now get charged for a safe deposit box rather than get it for free). They've changed the hours the office is open. The only person you recognize when you go to the office is old Ethel, the head teller who's been there since 1977.

1 YEAR ONWARD
You get notice in the mail that your old account type is being discontinued and you now have the some new "special" type of account. You're not supposed to use your old checks anymore, if you make a mistake and write one anyway they'll probably pay it. Ethel retired and you don't know a soul in your old branch and it looks like any other Chase office.

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 )

JPMorgan buys WaMu [CNN] (Photo: So Cal Metro)

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 )

The story begins several years ago, when Vijay and Supriti Soni were found guilty of forgery, falsifying real estate documents, identity theft and grand theft. According to court documents, the Sonis "obtained confidential information from various people – one of whom worked for Vijay and the rest who were clients for properties or mortgages – and then used it to acquire furniture, loan proceeds and commissions, real estate deeds and commissions, a Mercedes Benz automobile and cash for themselves."

So when the real estate bubble began to collapse, the Sonis saw an opportunity, and WaMu didn't do a criminal background check.

From the OC Register:

In July 2007, Vijay and Supriti Soni of Corona del Mar paid $440,000 for a home at 2129 W. Civic Center Drive in Santa Ana.

Five weeks later, they resold the house to Javier Hernandez – the family gardener and handyman – for $660,000. That's a 50 percent gain in 38 days – at a time when real estate prices in Santa Ana were plunging.

But the lender that financed both mortgages – Washington Mutual Bank – took a bath. In March of this year Hernandez's loan went into default and in July the bank foreclosed. On the trustee's deed, the bank listed the home's value at $377,137 – $220,000 less than the outstanding loan.

Records show that Washington Mutual, America's largest savings and loan and one of its most precariously perched lending institutions, financed at least 43 mortgages worth $24.5 million on properties bought and sold by members of the Soni family since early 2007.

So why didn't WaMu's new, stricter lending policies exclude the Sonis?

Experts told the OC Register that WaMu:

* Allowed financing of property flips that occur less than 90 days after purchase. The Federal Housing Administration imposed a ban on financing 90-day flips in 2006. The FHA also requires a second appraisal for homes sold at a 100 percent gain less than 180 days after purchase.
* Relied heavily on imperfect fraud detection software. Computers are good at flagging statistical aberrations – such as unrealistic income statements – but can be deceived by knowledgeable and determined insiders.
* Did not check criminal backgrounds. The Sonis had been convicted in 2003 of numerous felonies for a real estate fraud scheme. WaMu checks criminal backgrounds of loan originators, such as outside mortgage brokers, but not borrowers.

Last month, District Attorney investigators raided the family's homes and business offices. Now, prosecutors are investigating the Sonis and other members of their family for criminal behavior.

"Unfortunately, we are back looking at these characters again," said Doug Brannan, the deputy Orange County District attorney who prosecuted the Sonis in 2003.

The OC Register says that the Soni's effectively created their own market in Santa Ana, selling so many homes to each other for inflated prices that the sales were "later used by appraisers to give credibility to high asking prices for other properties in the area."

Here's an example:

Lohia bought the bank-owned house at 827 S. Flower for $249,500 on Jan. 4. She sold it 20 days later for $575,000 to her daughter, Suniti Shah, who financed the purchase with a $488,750 Washington Mutual mortgage.

That was a 121 percent increase in less than three weeks.

"Selling to each other, that's something an appraiser should definitely discover," said Mike Sanders, a Laguna Beach real estate appraiser and expert witness in property value litigation cases. "If the appraiser finds all the same people's names on transactions, then that's something suspicious."

WaMu loaned millions to O.C. home flippers with fraud history [OC Register]
(Photo: JOHN GITTELSOHN, THE ORANGE COUNTY REGISTER)

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.

[Dealbook] (Photo: Maulleigh)

Regulators gauging other banks' interests in WaMu [AP]

JPMorgan Chase in new bid for Washington Mutual [Daily Mail]
WaMu Responds to Standard & Poor’s Actions [Press Release]
Washington Mutual stock rises; merger talk disputed [Reuters] (Photo: James Callan)

I asked if he had seen an uptick in the number of WaMu customers switching over in the past week. "We've seen it in the past six months," he said. "The rich people leave first, then everyone else does. Why don't you open an account?"

When asked if WaMu customers were opening up Chase accounts as backups, he said, "Most people just switch."

PREVIOUSLY: Don't Start Yanking Your WaMu Accounts

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.

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 )

Brett writes:

Mark (my boyfriend) and I decided to move our accounts to the same bank to facilitate account transfers easier. Figured why not try a new bank while I was at it. We chose WAMU based on some research that showed them to have the lowest fee's and the no charge ATM fee's for foreign banks.

We opened our accounts online, after answering all the security questions we were in business. I switched my direct deposit, and began using the account. When it came time to pay the rent, mark attempted to get me his portion of the rent. He did a $1000 transfer using his debit card from commerce (considering it a cash advance). We waited a few days, and when we tried to buy new iPhones , he swiped his wamu MasterCard (debit) and it came back declined. After calling he found out that his deposit was put on hold and flagged as suspicious.

Unfortunately I had already deposited his check. My deposit was also put on hold. Needless to say neither of us had this money available. They apologized for the inconvenience, but was assured we wouldn't get caught with any bounce fee's. Finally a week after he made his deposit we received a letter outlining this hold, I've attached an example.

A week later it happened to me, a check I deposited was put on hold resulting in a bounced check to my roommate. I also made a deposit of my payroll check later that week, also put on hold. After several calls to customer service and talking to supervisors, I had most of the holds removed. In order to get the $1000 from the bf to pay my roommate, we went into a branch, we asked for the $1000 as cash, and then we would then deposit the cash into my account. The teller at the station told us she would do a transfer from his WAMU account into my WAMU account, assuring us it would be treated as cash, and would be available as such.

As my boyfriend was closing his account, the branch manager told us in the future if he wanted to reopen an account, to do so in person. She said these problems are common for those who open accounts online. After waiting a few days, and feeling confident there wouldn't be any other holds set on my account, I gave the go ahead to the roommate to cash the check. He did, a week later I get the attached letter; it happened again!

So I called Loss Detection,and she said that the branch had processed it as a check and not cash. I was admittedly upset by this time, and told her as such. Her response to me was she would hang up on me if I insulted her. I of course was level headed through out the conversation, but was taken aback her immediate response was to threaten me. In the end, she was able to clear the hold, but not before the other check bounced.

Apparently WAMU has a policy putting new customers on "probation" for 90 days, this is a ridiculous amount of time and terrible customer service. I understand most banks have probation periods but not as long, or as strict.

We have both since switched to chase and closed these accounts.

It's disingenuous to advertise signing up for banking online like it's super easy and awesome, and then use a different set of rules that punish the customers that just did what you told them to do.

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 )