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MetLife Bank Complaint - MetLife Bank Fails to Honor CD Maturity - Holds onto cash for more than 10 days and still counting!!

Review by Todd K on 2009-12-31
NEW YORK -- When I sent money to MetLife Bank for a 12 month CD, it was via a debit to my bank account. I assumed MetLife was an honorable bank, and would repay my money immediately, or soon after, the CD matured. I called them two days before maturity to ensure that the CD would, indeed, not be rolled over and would be credited back to my bank account. On a recorded line I was assured my money would be sent to my bank within a few days. It is a very substantial amount of money.

But, upon not getting my money after 5 days, I called to find out where my money was. I was told my request had not been processed! Further, that it may take at least another five days before I get my money! How about that! Including weekends, Metlife gets to use my money for two weeks, minimum, with no penalty! Try that if you want to redeem a CD early - or if you don't want to pay your mortgage or credit card on time.

I highly suggest you never use this bank.
Comments:24 Replies - Latest reply on 2011-11-03
Posted by Anonymous on 2009-12-31:
I highly suggest you research. Any bank you store money into a CD or maturity fund takes time to process a refund or payout. Depending when you made the request, especially over the holidays, it can take a bit of time.

My IRA takes 3 weeks to payout when I request money. If you need the money that bad, well perhaps putting it in a CD is not the best idea. Maybe a regular savings would be better.
Posted by *Brenda* on 2009-12-31:
hmmm my bank pays out CDs on demand.
Posted by Nohandle on 2009-12-31:
Brenda, mine does as well. If an individual wants to cash out early he looses the last month's interest with my bank. I just renewed several and was a bit peeved I had to wait until the renewal date to take care of it but that's the way it was. Had I wanted payment, it would have been available immediately.
Posted by Anonymous on 2009-12-31:
Gotta agree with Brenda & Nohandle on this one. My wife's credit union pays out CDs on demand. My mother got her IRA withdrawals on demand. If I had bank that didn't I'd probably do some research to find a more suitable banking choice.
Posted by Anonymous on 2009-12-31:
No, is that a payment or closing it out? My daughter cashed out a CD she has had since she was 2 and it took 6 business days to process. My youngest will probably close hers out when she turns out and I expect it to be the same. Maybe it depends on the bank.
Posted by *Brenda* on 2009-12-31:
REALLY ladyscot? WOW what bank is that? I'd switch.

I have accounts at three banks and all banks pay on demand.
Posted by *Brenda* on 2009-12-31:
maybe you are thinking of savings bonds?
Posted by Anonymous on 2009-12-31:
Savings bonds don't take days to process. You can take those into your bank and cash them out right then and there(whether they're at their full maturity or not). Or deposit it and it be available that night.
Posted by *Brenda* on 2009-12-31:
Yeah bearkat... same at my bank. I was thinking maybe she mailed them in to the treasury? Seriously if your bank takes 6 days to cash in a CD time to get outta there!
Posted by Nohandle on 2009-12-31:
In my case Lady a CD will be cashed out early if that's what you are speaking of. The individual looses the last month's interest that would have been earned otherwise. I agree, it depends on the bank. The CD's I was speaking of are only available at a bank. A CD POD account is not available at a Credit Union in my area. Bank or Credit Union I don't deal with one that doesn't offer funds on demand. No waiting period.
Posted by Anonymous on 2009-12-31:
*Shouldn't* take that long. Should just be able to just cash out your CD right then and there. At least, that's what you can do at Wachovia (my bank). Most people cash it out in the form of a cashier's check and take it back to their own bank. Now, what they do then is completely up to the bank. Cashing it out in the form of a check; there might be a hold on the deposit, who knows. But, 10 days is excessive. Now if the CD and bank account are at the same bank... that money should be in there that day... not 6 days. *shrugs* But, this is just going based off of my bank. All banks have different policies and what. Who knows.
Posted by Anonymous on 2009-12-31:
You are earning interest until they cut the check, so it isn't like they are going hog wild with your money.

I might also point out that OP isn't dealing with a traditional (brick & mortar) bank, but took the trade-off of a higher interest rate.
Posted by Nohandle on 2009-12-31:
Ken, what did I miss? I don't see where the OP quoted the interest rate on the CD.
Posted by Anonymous on 2009-12-31:
He didn't NH, but that's what the virtual banks have to offer. In lieu of being able to deal with them face to face, they pay higher interest rates. Think about it, why else would you send your money off into cyberspace, not really knowing where it goes or who is handling it? Because of the attractive rate.
Posted by Nohandle on 2009-12-31:
LOL Ken, and to think I actually phoned around to get the best rate at the time. Local banks, of course.
Posted by Anonymous on 2009-12-31:
It's not like I am a millionaire and the difference matters, but my personal choice is to keep my money in my community, and to deal with people thatI can sit across the desk from. So, I agree with your choice.
Posted by Class Advocate on 2009-12-31:
Is he getting interest on his money for the post-maturity days? Not the point I know, but still curious.
Posted by bunnyhead on 2009-12-31:
I worked for MetLife Bank for 4 years and if you are still having a problem try calling their direct line, 908-253-2800. The CEO of the bank is Donna Demaio and she is a very nice lady. I don't remember her extension but you can press 3 for the operator and she can connect you.
Posted by grandma005 on 2009-12-31:
No toll-free number? Why should she have to pay for the call?
Posted by Anonymous on 2009-12-31:
The toll free number would probably call into the regional call center. This number is probably directly into the corporate offices where the company operator can route the call to the CEO.
Posted by Todd K on 2010-01-01:
Everyone,

Thanks for your comments. I am the original poster.

To LadyScot - I used to work at Bank of America and other banks. I was also a Treasurer of a very large company. I know it should not take this long. In addition, I do research do you know of a place that lists each banks performance on refunding matured CD funds? I check several web sites, but none of them had shown any problems. But, you cannot always find how long a bank takes to pay. Further, MetLife represented that they would pay within three days. But, they were not truthful. Also, I did not need money "that bad."

Further, I have money at many banks - none have EVER taken this long. BofA, Wachovia, Chase, ING, Ally, HSBC, etc.

To Brenda - what is your bank that pays "on demand." Not sure what "on demand" means.

To Stew - See above.

To Ken Popcorn - they specifically told me- on a recorded line - that they were not going to pay me interest on their late payment. Further, the interest rate was commensurate with local banks. But, I am glad you are getting what you want with local banks and that is what you are comfortable with. My post was to warn others who do not do as you do.

To Bunny head - thank you very much. I will use the number.

All, I have reported this to the Office of the Comptroller of the Currency, the Federal Reserve, and various national representatives.

I am thinking of checking with a class action lawyer, because I hear a lot of this via various posts and research I have done.

I welcome any other thoughts or ideas.

Thanks,
Todd
Posted by Anonymous on 2010-01-01:
Well, my daughter's cd is with BOA. And our IRA with HR Bank. I am satisfied with the way they work. I get no hassle it just takes a bit of time to get money.
Posted by bunnyhead on 2010-01-02:
Yes Pro, the number I listed goes directly into the headquarters in NJ. It is the number that employees use to get in touch with other employees. The 1800 number just gets you into the call center which I believe isn't located in NJ at all. I think it is locted in RI.
Posted by Bill T on 2011-11-03:
Pattern - Called 10/12/11 giving instructions for at maturity 11/2/11 to move the CD funds to our Money Market so as to be able to ACH the funds to another institution. Called 11/3/11, was told, yes they had a record of the 10/12/11 instructions but had chosen not to honor! No explanation given? Again repeated the instructions. Told could take 48 hours to accomplish - a blatant stall!

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