John can’t understand how Wachovia charged his startup $12 in fees for failing to maintain a minimum balance when his company never opened an account with Wachovia in the first place. Apparently, his former bank manager decamped to Wachovia and, without his permission, opened a new account “to ensure certain money rates,” whatever that means. John isn’t mad, and the bank manager agreed to close the account, but John is a little worried because a collections agency has started calling and the account now lists $24.05 in fees.
John doesn’t know how the account was opened without his permission, but the former bank manager did have the relevant information needed to open an account. John writes:
We are a startup company that is currently out doing a Series B raise in order to commercialize a product we have in-licensed. The bank manager from our current bank left to join Wachovia. We were always happy with his service and we were not surprised when he contacted us and tried to get us to switch our banking to Wachovia. We indicated that the current timing was not good due to our financing. What we did not know was that he took upon himself to open an account for the company “in order to ensure certain money rates”. Boy were we surprised when we got a $12 fee for being below the minimum balance requirements. We joked that as a startup it was nice to know that our “future bank” would be more than happy to take our last $12 as a fee. We contacted our banker friend and he said he would close the account. We are now up to $24.05 in fees and a collection agency has called. Needless to say Wachovia will not be getting our business.
Wow, what a hassle. Invoice the fees to your former bank manager and use the proceeds to pay off Wachovia. Or threaten to call his new boss.