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Regions Bank Informative - High Fees with Terrible Customer Service - Bank
HUNTSVILLE, ALABAMA -- I am about to close out my Regions Bank, not because of those fees, but the combination of excessive fees, failure to update online bank information in a timely manner, poor customer service e-mail response, long delays when calling customer service, long wait when waiting to talk to branch employees and my pet peeve; unable to answer questions and failing to follow up with phone calls.
The most frustrating problem was manipulation of daily deposits and withdrawals so that the maximum fine could be charged. Not once did Regions try to work with me and whether it was a weekly unemployment check back in 2010 or this year with a direct deposit of $1750/week they always charged a "just in time" fee. For instance, I would check my Thursday night balance and see I have maybe $400, but Friday morning even with $1750 posted they would fine me $70 for an Thursday night overdraft. When I called them they would claim, "Our online service does not guarantee the amount posted is available, and you agreed to this when signing up for online banking". The other excuse was, "We do our last batch processing at MIDNIGHT". So at midnight a $12 overdraft includes a $36 fine and then at 6 AM Friday morning (6 hours later) the direct deposit is posted and available. Whatever way they can legally and unethically take money from you they went out of their way to exploit this. I recall going to a Title Loan/Payday Loan and telling them, "The difference between you guys and Regions Bank is you tell me up front what the fee will cost". When I can trust and turn to the local Title Loan/Payday Loan company as opposed to Regions Bank that makes my point. I am tired of them and as they claim to "be listening to their customers" and this was a lie. The reason Regions ended Debit Card Fees is because Bank of America and Wells Fargo had already announced they cancelled their debit card fees. I do not believe Regions would have cancelled any fee if these other banks didn't do it first. As for Wells Fargo, they may charge fees, but their customer service and their branch staff always addressed my concerns in less than 10 minutes
The most frustrating problem was manipulation of daily deposits and withdrawals so that the maximum fine could be charged. Not once did Regions try to work with me and whether it was a weekly unemployment check back in 2010 or this year with a direct deposit of $1750/week they always charged a "just in time" fee. For instance, I would check my Thursday night balance and see I have maybe $400, but Friday morning even with $1750 posted they would fine me $70 for an Thursday night overdraft. When I called them they would claim, "Our online service does not guarantee the amount posted is available, and you agreed to this when signing up for online banking". The other excuse was, "We do our last batch processing at MIDNIGHT". So at midnight a $12 overdraft includes a $36 fine and then at 6 AM Friday morning (6 hours later) the direct deposit is posted and available. Whatever way they can legally and unethically take money from you they went out of their way to exploit this. I recall going to a Title Loan/Payday Loan and telling them, "The difference between you guys and Regions Bank is you tell me up front what the fee will cost". When I can trust and turn to the local Title Loan/Payday Loan company as opposed to Regions Bank that makes my point. I am tired of them and as they claim to "be listening to their customers" and this was a lie. The reason Regions ended Debit Card Fees is because Bank of America and Wells Fargo had already announced they cancelled their debit card fees. I do not believe Regions would have cancelled any fee if these other banks didn't do it first. As for Wells Fargo, they may charge fees, but their customer service and their branch staff always addressed my concerns in less than 10 minutes
Comments:
Posted by trmn8r on 2011-11-08:
Banks need to make money one way or the other. It is simple economics. They *are* providing you a service, they have employees and bills to be paid, and they have investors that expect a return also. This is related to why they tested the debit card fees you speak of, which are unrelated to your issue. If *something* didn't have a fee, they would go bankrupt.
Most all banks have the fees that are at the center of your complaint - overdraft/low balance fees. The cure for this is in your power - keep your balance positive. The bank will not "work with you" to make accomodations for letting your balance go negative. At least not more than once.
You mention BoA and Wells - they have the same o/d fees you are complaining about.
Most all banks have the fees that are at the center of your complaint - overdraft/low balance fees. The cure for this is in your power - keep your balance positive. The bank will not "work with you" to make accomodations for letting your balance go negative. At least not more than once.
You mention BoA and Wells - they have the same o/d fees you are complaining about.
Posted by Churro on 2011-11-08:
As a customer I couldn't care less about the 'simple economics' of a company’s business plan or what bills they have to pay. That's their concern not mine. As a customer the only thing I concern myself with is value. Whoever can provide me the best value will get my business. These days the big national banks are not a value play for your average bank customer. Most people will be better served by locally owned community banks or credit unions. Especially considering a recent change in the law that favors the local small guys.
Do yourself a favor and check out the locally owned banks and credit unions in your area. You'll be glad you did.
Do yourself a favor and check out the locally owned banks and credit unions in your area. You'll be glad you did.
Posted by Old Timer on 2011-11-08:
The debit card fee was a minimal $5.00. Which could be waived by having a minimum balance or another service with a bank. The real issue is how Regions, BofA, Wells Fargo etc line up credits and debits to maximize OD fee's. Even though a big bank knows there are available funds they will delay posting an available balance for 4-5 hours to allow debits to OD and account. Then they line up the debits to maximize the OD fees. ie: if there are 5 debits, they will OD the account with the largest one first which makes the other four all go NSF. They could have paid four smaller debits and bounced one large one. But they chose to pay the large debit with any available funds which gets them four NSF fees instead of one. This is after the fact that the account showed available funds online.
Yeah, I know, read the fine print yada, yada, yada. The big banks can do what they do because you have agreed to their terms.
These are the actions that have got the big banks into the most hot water and dragged before congress and the courts. Yes, keeping a positive balance will eliminate these problems. However, having a big bank working against you at every turn when times are tight and tough does not help one bit.
Yes, going to a small local bank or credit union will help a great deal as they will try to work with a person. But you still have to have the money in the account when the debits come in or they will hit you with fees too.
Yeah, I know, read the fine print yada, yada, yada. The big banks can do what they do because you have agreed to their terms.
These are the actions that have got the big banks into the most hot water and dragged before congress and the courts. Yes, keeping a positive balance will eliminate these problems. However, having a big bank working against you at every turn when times are tight and tough does not help one bit.
Yes, going to a small local bank or credit union will help a great deal as they will try to work with a person. But you still have to have the money in the account when the debits come in or they will hit you with fees too.
Posted by leet60 on 2011-11-08:
The real basis of the issue, based on the complaint, appears to be that the OP elects to utilize the "online" or "ATM" balance, rather than keep an accurate ledger of the account. Keeping an accurate ledger, entering even the SMALLEST transaction daily, would have avoided the fees.
Posted by CowboyFan on 2011-11-08:
Don't blame others for your failure to keep track of what you spend out of your account. No on-line balance will ever match what has been spent out of the account, because only you have that information.
Banks have a logical reason for lining up debits from highest to lowest: the largest are usually the most important. Would anyone want a monthly payment to their credit card company not paid with its attendent penalties and rate increases, so that 4 small debits to starbucks and donut hut are paid? Of course not. That is why the largest is paid first, followed by the smaller. Once a procedure is chosen, the bank has to follow it in all cases and cannot make a decision as to which of the debits or checks to pay.
Banks have a logical reason for lining up debits from highest to lowest: the largest are usually the most important. Would anyone want a monthly payment to their credit card company not paid with its attendent penalties and rate increases, so that 4 small debits to starbucks and donut hut are paid? Of course not. That is why the largest is paid first, followed by the smaller. Once a procedure is chosen, the bank has to follow it in all cases and cannot make a decision as to which of the debits or checks to pay.
Posted by Old Timer on 2011-11-08:
Ummm, Cowboy, BofA was sued and lost the case for playing the max the nsf fee game. Now they pay or decline as they come in, not by order of how they can butcher their customer the best way possible.
That being said, a positive balance can and will keep the big banks out of your back pocket.
That being said, a positive balance can and will keep the big banks out of your back pocket.
Posted by CowboyFan on 2011-11-08:
Thank you for that information Old Timer.
Posted by Eddie on 2011-11-11:
I offered any of my coworkers $25 if they pulled all their money out of and closed their Regions account(s). These guys nor get #1 as the biggest law abiding crooks I have ever dealt with.
What I learned about their practices if I am in a store and the opportunity presents itself I will NOT hesitatr to encourage them to close their region bank account(s) and use Restone Credit Union.
What I learned about their practices if I am in a store and the opportunity presents itself I will NOT hesitatr to encourage them to close their region bank account(s) and use Restone Credit Union.
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