The New York Times says that the mortgage meltdown isn’t just a subprime problem anymore, but has spread into the prime market where consumers with good credit are now struggling to pay their bills.
banks
Reach Capital One Account Supervisors
By 2.12.08
Capital One Account Supervisors: 1-800-707-0489. They have full access and powers to fix any account problems. They’re probably even so smart that they can tell what’s in your wallet without even asking.
Don't Be Ashamed To Ask Friends Or Family For A Loan
By 2.10.08
Taking a private loan from friends or family can be a win-win proposition, not necessarily a shame-filled dish with a side order of failure. Private loans are an ideal way to reduce the amount you need to borrow from a bank—instead of paying loan application fees, processing fees and higher rates, you can save money while offering attractive yields to your friends and family.
Would You Scan Checks At Home For Deposit?
By 2.9.08
Banks have hesitated to adopt technology that would let us scan paper checks at home for deposit. The Check Clearing for the 21st Century Act allows banks to exchange electronic images instead of paper checks, but USAA, a credit union associated with the military, is currently the only bank to offer customers a check scanning option. Sure, it’s easy enough to stand on line for a teller or wait for an ATM, but we fear sunshine and people and prefer to stay indoors, thank you. Assuming it was free, is this something you would use if it was offered by your bank? Vote in our poll, after the jump.
Why Is Bank Of America Raising Interest Rates On Its Good Customers?
By 2.8.08
BusinessWeek has just published an article about Bank of America’s recent surprise mailings in January to some of its customers, announcing “that it would more than double their rates to as high as 28%, without giving an explanation for the increase.” These customers have good credit scores and hadn’t made any late payments, and those who called Bank of America to ask why this was happening weren’t given clear reasons. Industry experts say Bank of America has reached a “new level” of “lack of transparency in raising rates,” beyond anything Citigroup and JP Morgan Chase currently practice, because BoA is apparently using some undisclosed internal metric to determine who gets the rate hike.
USAA Customer? Make Sure Your Checks Haven't Been Cashed Twice
By 2.8.08
This morning, Mary logged onto her USAA bank account to check her balance and was surprised to find that her rent check had been cashed twice while she was asleep. She was eventually able to get through to a human and get the problem addressed, but it wasn’t easy. And she may not have been the only one affected.
Internal Docs Prove Wachovia Knew About Telemarketer Rip-Offs All Along
By 2.6.08
A woman sued Wachovia last year because it allowed a telemarketing scam company to process stolen payments through its banks, despite complaints from customers and warnings from other banks and federal authorities. Wachovia said it had no idea what was going on, but now documents have been revealed that prove people high up in the company not only knew, but that “the bank, in fact, solicited business from companies it knew had been accused of telemarketing crimes.” Why? How about millions of dollars of extra revenue from steep fees whenever a fraud-related chargeback went through? The lawyers for the woman are now seeking class-action status for the lawsuit.
Centura Bank Manager Steals $82,000 From Elderly Customer's Account
By 2.5.08
A Centura bank manager was arresetd on suspicion of defrauding an 86-year old man out of $82,000 from his bank account. Milton Hagelberger helped the old man set up his checkbook, then set up a second account under the old man’s name and made himself an ATM card. The manager had the account statements mailed to an empty lot across the street from the bank so the man wouldn’t see the missing money. The victim only found out about the fraud after he tried to cash a check and found he had insufficient funds. We’re often worried about outside identity thieves stealing our moneys over the internet, but sometimes identity theft happens in the flesh, right in front of our face.
Banks Get Stingier With Credit Cards
By 2.5.08
Rising defaults and people behind on their payments have credit card companies retreating from the marketing and lending orgy of the past few years. Here’s what the different banks are doing to shore up their positions:
Your Account Is Never Really Closed At Bank Of America
By 2.4.08
Paul writes, “Did you know a “closed” checking account is never really closed? Today I walked to the local BofA for the third time to close a checking account that every month seems to magically re-open with a $5.95 account fee. What the manager told me was quite shocking.”
Consumers Are "Unaware" That Lenders Can Help Them Avoid Foreclosure
By 1.31.08
A new survey from Freddie Mac says that 57% of delinquent homeowners are unaware of so-called “workout” options that could help them avoid foreclosure.
Reader Saves $950 By Ridding Life Of Fees, Overpayments
By 1.31.08
Moriconi writes in to tell us how he was able to save $950 this week by uprooting the hidden fees and renegotiating the things in his life he was paying too much for. Awesome! Here’s his true story:
By 1.30.08
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Swiss bank UBS loses $18 billion in the subprime mortgage market. Hi ho. [BusinessWeek]
FBI Starts Investigating The Entire Mortgage Industry
By 1.30.08
The New York Times says that the FBI has begun an investigation that includes almost the entire mortgage industry—from the lenders to the brokers to the Wall Street banks who packaged the loans as securities. They’re cooperating with the SEC and wouldn’t name which firms they’re targeting, but the Times said that it includes 14 companies.
How Companies Make Money Pissing You Off
By 1.28.08
A story in Bob Sullivan’s new book Gotcha Capitalism shows one of the first points when companies realized they could make more money by getting rid of their customers. The year was 1995, and First National Bank of Chicago decided to charge customers a $3 fee for talking to a teller. The move was lambasted in the press and by comedians, and analysts predicted a severe decline in profits as customers fled in protest. Instead, First National Bank’s percentage of customers producing an “adequate return” went from 33% to 45%, and profit went up 28%. How does this work? Bob writes:
…satisfying the right customers is the goal, but pissing off the wrong customers is equally important…[D]epositors with large accounts were exempt from such fees…Only irritating customers with tiny bank accounts who asked a lot of questions went elsewhere….Chasing away undesirable customers with outrageous fees has been an important element of the banking business ever since.
And every other service industry as well.
Banks Make Up For Their Subprime Losses By Charging You $3 To Use An ATM
By 1.28.08
JP Morgan Chase and Bank of America now charge $3 for non-customers to use their ATMs. Wachovia increased fees at a potion of its ATMs, and the average fee that your bank charges you to use another bank’s ATM has risen as well.
Appraiser Says Washington Mutual Blacklisted Her For Not Inflating Property Values
By 1.28.08
A Californian real-estate appraiser is suing Washington Mutual, saying she was blackballed after refusing to to give artificially inflated property value estimates.
…last May, according to the suit, a WaMu manager upbraided her for describing local property values as “declining” in an appraisal. The manager insisted that Wertz “change her report to indicate ‘stable’ conditions so that the loan could be approved.”
By 1.26.08
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Bill Clinton and Arnold Schwarzenegger are teaming up to help poor Californians open starter bank and checking accounts so they don’t have to turn to cash checking and payday loan places with usurious fees. [WSJ]
