I am in the process of leaving Citizens Bank. I was a customer at a local bank 20 or so years ago. It was acquired by another bank, which was in turn acquired by Citizens Bank. So I don’t know exactly how long I’ve been a Citizen’s Bank customer, but it’s been years. When I opened my account, I arranged for an overdraft line of credit. When you go below 0, it automatically credits you the money, and you pay it back, just like a credit card. I only use it at Christmas time and vacation time and it’s always paid back in a month or two. Yes, I could use a credit card instead but to me this is easier.
Citizens Bank is now charging $10 each day that there’s a transaction to use the line of credit. This service used to cost nothing. It costs the bank absolutely nothing to provide – it’s an automated transaction. In fact, they get to charge a high interest rate to people using it.
When I went in to talk to a Citizens Bank employee about this, she had a condescending attitude, which is pretty much the attitude I've received any time I've had a problem with them. She acted like the bank did me a huge favor to loan me the money. WRONG. It’s no different than a credit card, and I have excellent credit, with credit offers in the mail every day. I'm paying them quite the interest rate as I borrow the money.
Right after my experience at Citizens Bank, I headed to my local credit union and opened a checking account with overdraft line of credit. I asked them about their service fee for using the overdraft line of credit – and of course, it’s ZERO -- all you pay is the interest. By the end of the month, once checks have cleared and automatic payments have been redirected, I’ll be out of Citizen’s Bank completely. Good riddance.