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Old 03-28-2017, 11:16 AM   #1
KenJackson
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Beware of E-Loan bank shenanigans!


Back in 2006 I opened a savings account with E-Loan (Banco Popular NA) with straightforward terms. They paid 5.5% and there were no fees. All deposits and withdrawals were made via ACH from and to my checking account in another bank. If the balance ever dropped below $5000 they would dump the balance into my checking account and close the E-Loan account. Simple! Excellent.

But by 2013 the rate had dropped to well below 1%, so I withdrew all my money. I didn't bother to tell them I was closing the account because the terms said they would close it automatically.

However, yesterday they sent me an email saying, "Effective May 15, 2017, your current eloan® account will be converted to a Popular Direct account." (It's a good thing I still have that e-mail address.)

My current account??! Why is it still open?

But I've dealt with banks long enough to know that almost all banks at some point will change the terms on some account such that if you do nothing, you owe a fee.

So I went online and dug into the terms of this new Popular Direct account and found that I will owe a $4 monthly service fee, "if the balance on any day of the statement period is less than $500." And/or a $5 "monthly fee after the account has not had activity for 12 months." If my account is still open, the balance is zero and it's been inactive for years.

Isn't that clever!

Last edited by KenJackson; 03-28-2017 at 12:46 PM.
 
Old 03-29-2017, 03:38 AM   #2
des_a
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Wow! That is bad news.
 
Old 03-29-2017, 03:56 AM   #3
TenTenths
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Quote:
Originally Posted by KenJackson View Post
I didn't bother to tell them I was closing the account because the terms said they would close it automatically.
So your mistakes are:
  1. Not actually telling them.
  2. Believing a financial institution.
  3. Not checking it actually got closed.
I assume you've subsequently closed it and CHECKED that it's closed
 
Old 03-29-2017, 09:37 AM   #4
KenJackson
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Quote:
Originally Posted by TenTenths View Post
So your mistakes are: ...
I assume ...
Thank you, Mr. KnowItAll. Your gentle concern is touching.

As it happens, the checking account I had used then is now closed, so they have no way to take their illicit fees. But, yes. I found my login credentials, logged in and sent them a secure message to not convert the account and to close the account.

I haven't been hurt at all by this incident. I posted it here in the hopes of encouraging others to pay attention when a bank says they're making changes and perhaps to amuse the interested reader.
 
Old 03-29-2017, 09:46 AM   #5
TenTenths
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Quote:
Originally Posted by KenJackson View Post
Thank you, Mr. KnowItAll. Your gentle concern is touching.
You're welcome

Quote:
Originally Posted by KenJackson View Post
I haven't been hurt at all by this incident.
Good stuff, glad to hear that!

Quote:
Originally Posted by KenJackson View Post
I posted it here in the hopes of encouraging others to pay attention when a bank says they're making changes and perhaps to amuse the interested reader.
It's also the same with ISPs etc. if anyone makes any fundamental changes to contracts or terms and conditions there's usually a cooling-off period where they have to let people cancel etc. without penalties.
 
Old 06-03-2017, 10:21 AM   #6
KenJackson
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There's an article at ZeroHedge saying that the bank's default risk has surged and the stock has plummeted.

Gosh! If I had sold short I would have made a mint.
 
Old 06-04-2017, 08:03 AM   #7
sundialsvcs
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Banco Populàr – if you really are dealing with Banco Popular – is a legitimate enterprise that does a lot of business in Puerto Rico ... an American protectorate ... as well as lots of other places. They're just as underhanded about fees as is any other bank. But, you do have the right to formally close your account. Drawing an account down to a zero balance does not close it.
 
Old 06-04-2017, 10:04 AM   #8
KenJackson
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Quote:
Originally Posted by sundialsvcs View Post
... Banco Popular – is a legitimate enterprise ...
They're just as underhanded about fees as is any other bank.
Indeed. I said it this way:
Quote:
Originally Posted by KenJackson View Post
But I've dealt with banks long enough to know that almost all banks at some point will change the terms on some account such that if you do nothing, you owe a fee.
Quote:
Originally Posted by sundialsvcs View Post
Drawing an account down to a zero balance does not close it.
It should have, according to the terms of the account I originally opened. But no matter--it's closed now.
 
Old 06-04-2017, 09:07 PM   #9
frankbell
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It's not just e-banks. Brick and mortar banks can be just as treacherous.

(RANT)

I recently moved my banking away from a certain bank that shall remain nameless (cough! stagecoach cough!) because of their fiduciary irresponsibility. I ended up with them because my original bank got absorbed by another bank which in turn flopped during George Bush's recession.

I didn't like them from the git-go (though I must emphasize that I never had a problem with my local branches or their staffs), but moving a bank account is annoying. This was the straw what broke.

My father was a banker. He was an honest man, a man of integrity. That was back when banks prided themselves on having integrity. Now all they seem to care about is paying their executives' country club memberships.

Today, my father would be ashamed to admit that he ever worked for a bank.

(/RANT)

Last edited by frankbell; 06-04-2017 at 09:11 PM.
 
  


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