I tried to take money from the ATM, via debit card, which was supposedly a no fee ATM. I got to the final screen, and it gave me the "you will be charged a fee of $3.50, is this alright" screen. No it wasn't alright! I cancelled the transaction. Today, my statement shows a $1.00 charge for "denial". Nowhere was there anything listing the charges for using the ATM, or the fact that you would be charged $1.00 for deciding not to use their ATM. Can you say "utterly ridiculous?"
Consumer Complaints & Reviews
I tried to negotiate to lower my interest rate to 23.99%. After putting me on hold for about 15 minutes, they said that there is nothing right now and that they can't do anything about it. I negotiated by saying that: 1.) We all know that the rate can be negotiated. 2.) That lowering the rate to 2% will make a big difference for me in order to send more money and pay the debt faster due to the fact that I got a second job. 3.) I have been a good customer for many years 4.) I've always been responsible and made my payments on time and I have never been on default. 4.) I haven't use the cards in few months because I'm serious about paying the balance. Still, I was not able to get anything.
First National Bank of Omaha North Platte took over management of our family trust in 2002; I use the term management lightly. They have done a horrible job except for providing a strong, steady income to their investment arm. We are now at three years after our mother's death, when the remainder of the trust was to be distributed, still waiting on them to complete distribution of the monies. They finally distributed most of them last month, but, gee, they'd invested in a $100,000 bond that couldn't be cashed for a couple more weeks. Never mind that they had no business investing in a non-liquid asset when the distribution has been imminent for several months. The VP sent us all a note telling us the bond couldn't be sold until October 1, but would then be distributed. The lack of professionalism was incredible!
Plus, she sent some little "Accounting Lite" "spreadsheet" of the distribution. Anyway, she stated in an e-mail that the bond proceeds would be distributed after the first (which had lost value by the time they sold it in keeping with their track record of smart management). That was a Friday. The following Wednesday, she hadn't distributed it. So I sent an email inquiring as to when it would be distributed. She replied, "Later this week." It's now been three weeks, and nothing has been distributed. I had my lawyer sent a letter to their attorney, demanding that I received interest on my share, 3.75%, which is what my Kasasa account pays from the 1st until she finally gives us our money. But the point here is that this isn't their money! But they refuse to distribute it! I have no doubt they're collecting interest on its use. More of the same "to heck with the beneficiaries we're supposed to take care of", and just ignore the legal "niceties" of their fiduciary responsibility!
The overall picture: after over 10 years of management, the bank is returning to us almost exactly what we turned over to them in 2002. On $2.1M over 10 years, there is virtually no investment gain whatsoever. But they've made plenty off of it; brokerage fees, their ever-increasing quarterly "management fees," the legal fees, including the penalties and interest on their lawyers screw up, and now? They're charging an additional $25,000 "trustee fee" to the trust for their services! Their quarterly statements reflect a track record of constant "churning" of the trust, trades being made, no matter what the economic or investment environment, on a constant basis, through volatile markets including the economic meltdown a large portion of them at a loss. This is the quintessential definition of the word "churning."
But the return on investment for the trust was never a priority; collecting fees for themselves was. When they first took over the trust, they told my attorney that "they didn't charge brokerage fees." When I saw these notations, we sent a letter to the bank vice president, inquiring about them. I asked that the totals of the fees paid be included in the accounting, along with those brokers/firms to whom they were paid. The VP just said "we don't pay brokerage fees." After having two other brokers review the statements and the notations, they both unequivocally verified they were indeed brokerage fees, but went on to comment that they were also well above the standard charged in the industry, and these guys both work for brokerage houses! I might point out here that this bank is a subsidiary of First National of Nebraska, Inc., and their "services" include an "investment arm."
Guess who I'm sure was making the money off of all these often unnecessary trades? Despite these trades being recorded on the quarterly statements, the bank still denies paying the fees. Early on, they were called by some varying names in an obvious attempt to be disingenuous. The last couple of years, they say point blank: "broker fees paid." We've now sent several letters, demanding that the bank either provide the accounting of the total amount of brokerage fees paid since they took over management, along with who they were paid to, but they still refuse! We also stated that if they weren't brokerage fees, then explain just what the notation are. Again, they simply ignore it. We've even written to the lawyer they hired to do the trust taxes and the final estate tax filing. His answer has been the same "the bank doesn't pay brokerage fees." No explanation of what the notations are. He apparently can't read
He has another story. They hired him to do the taxes for the trust in 2002; at that time, he apparently contacted the accountant whom he was taking the business away from for copies of the previous filings. After taking over 2 years to get the final tax filing done, he was notified by the IRS that he'd not accounted for a gift tax filing from 2001. His explanation was that the other guy didn't give it to him. A couple of things about this explanation: (1) Why didn't he go to the bank trustee to get the files? That's called "due diligence", which is required for lawyers and the bank itself in fulfilling their fiduciary responsibility; (2) The other guy did provide the previous year's gift-tax filing to this lawyer; I believe that would be call a "clue", perhaps indicating there may have been others. (3) The lawyer's explanation to the IRS was to blame the other guy for the oversight.
Now for the clincher: after paying the lawyer a lump-sum of $13,000, along with ongoing payments over the past two years to file for a trust, the bank claimed he was "quite familiar with", the bank is charging the trust for the penalties and interest for their lawyer's failing! I've obviously objected and my lawyer has sent a letter demanding the bank and/or the attorney to pay the penalties and interest. Not the trust. That was a month ago; haven't heard anything back. Big surprise. If those monies had been with a regular brokerage firm and had consistently performed that badly, and they'd continued to make senseless trades month in and month out, they'd have long since been fired. But not this bank "trust" division. I wouldn't "trust" them to manage a plant.
Brief History with First Nat. Bank of Omaha: I've been a customer of theirs for several years (credit card holder). I have always stayed under my limit, made all payments early (never a late payment), pay over the minimum payment and have, in every way, been a superior customer. My interest rate has been 9.99% (fixed). Last year, they tried raising my rate to around 17%, and when I called to complain, they said it was "due to the poor economy." I argued they should not raise rates for consumers who do excellent business with their company, and who have a perfect record with them. After a series of phone calls, they agreed to keep my rate the same.
However, today (08-03-10), I received a notice in the mail stating they're raising my interest rate, "effective" 09-16-10, but it "applies to allpurchases" made from 08-16-10 onwards. This is not only wrong (completely unfair) but I think it's very convenient for First Nat. Bank of Omaha. My payments are due on the 20th of each month, and I (as usual) already sent out my payment for this month. I made a large payment ($600), so I'd have extra credit available for upcoming car repairs in two weeks.
It's too late to withdraw my payment, as it's already been sent out. Had I been given sufficient notice of the increase, I would've chosen to only make a $150 payment (still above the minimum) and use the extra $450 to pay for my car repairs by check. Instead, First Nat. Bank of Omaha has my large payment, and if I charge my car repairs in two weeks (when the parts come in), I'll be subject to being charged a new higher interest rate. I wasn't even given 30 days' notice of the increase, though it'd still be wrong to give notice of less than 60 days anyway. (Though it says the increase isn't "effective" until 09-16-10, it also states it "applies to" purchases made on or after 08-16-10.)
The whole thing is wrong, period. They shouldn't even be raising my interest rates at all. Not only is this rate increase completely unfair and unreasonable, especially for excellent customers, it should also be illegal to raise interest rates with less than 30 days' notice for new purchases. To be blunt, I think it should be illegal for them to do so, without many months' notice, for good customers. There should be sufficient time for a customer to decide to drop such a company and apply for (and secure) new credit cards with other, better companies.
Even with many months' notice, it still affects customers negatively when they are forced (for no good reason) to either have to pay higher interest rates or close a credit card, which then affects (lowers) their good credit ratings. Why have I spent years building good credit and a good rapport with a company who's only going to turn on their customers and stab them in the back for their own gain? Why would I do business with companies like this ever again? They made lots of money over the years off me, and after gaining their profits, they turn and take the gain from me (of a good, established credit rating due to being a great customer with them). They are also changing my fixed interest rate to a variable interest rate now. This is so wrong.
The economic damage that occurs to me from this change (especially without notice) is that I'll have to wait to get my car repairs, or pay this higher interest rate if I charge the repairs! I don't have an income that allows for budgeting both a $600 payment to my credit card company and paying another $450 in car repairs, in the same month or two. The economy affects all of us. I'm an extremely careful "budgetor", and because I had insufficient notice of this increase, I'm now stuck paying a higher rate or skipping my car repairs (which are needed) for another whole month or two.
This also means that I'll be canceling the credit card, due to non-agreement with the "new terms." This will affect my credit rating (which has been above 720 for years), which is also unfair. This was my only open credit card left, after I canceled two others due to these ridiculous "rate increases" last year. This affects my ability to qualify for a car loan now (my car is a 2001, so I'll probably need another one in the next year or two), because I'll have no open, long-established credit cards which have helped build my good rating. I refuse to do business with companies that are unfair with their customers. I already closed my Capital One card last year, due to them deciding to raise my rate to 24.99% for absolutely no reason except "the economy."
I had a perfect standing with them as well! This also happened with Chase! These were all companies I paid early or on time, never missed or was late on a payment, paid over the minimum, and never went over the limit. Canceling the other two cards was due to their insane rate increases. I stayed with First Nat. Bank of Omaha because they promised to keep my rate the same and not do this. Without any credit cards, my credit rating will definitely be affected. Normally, I'd just search for a new company with a low, fixed rate. But, to complicate matters, I was recently diagnosed with an illness (Jan. 2010), which has put me on a medical leave from work for now.
Even with the leave, I've continued making all payments on time (early), and above the minimum payment. But without hardly any current income, I wouldn't qualify to open a brand new credit card. The physical damage resulting from this company is that I'll have no open credit cards left, which affects my ability to purchase online or at places that don't accept checks, or for emergencies when I don't carry cash, etc. They should not be able to do this to excellent customers, just to get even more money out of them.
This interest rate increase is unfair and unnecessary. They should only be raising rates for customers who do not make timely payments, or who go over the limit. Even customers making minimum payments shouldn't be subject to interest rate increases, because the credit card companies are making a killing off them. Those customers are paying out almost everything to interest each month, and credit card companies know this and profit greatly by it. So, it doesn't hurt them one bit, but it does hurt the responsible consumer who makes timely payments and uses the credit cards to build and keep good credit over the years. This is similar to having a job for 10 years.
If, after a decade of hard work (including showing up early or on time everyday, never missing work due to illness, working hard and benefiting the company, etc. ) bosses were to suddenly tell employees that not only are they going to lower their wages in half for "no reason" (and if they don't like it, quit), but also said that they weren't going to even provide a good reference, employees would be fighting it. Hard-working, perfect employees deserve a good reference and the use of their employment history on their resume, to help land new jobs. Hard-working, perfect customers deserve the good credit rating from the companies they patronize, without having to be subject to unfair interest rate increases or canceling the card.
