Online Banking Keeps Customers on Hook for Fees

[groovedaddy]

Customers frustrated by banks’ controversial new fees are finding out what industry insiders have known for years: it is not so easy to disentangle your life from your bank.

The Internet banking services that have been sold to customers as conveniences, like online bill paying, serve as powerful tethers that keep them from jumping to another institution.

Tedd Speck, a 49-year-old market researcher in Kent, Conn., was furious about Bank of America’s planned $5 monthly fee for debit card use.

But he is staying put after being overwhelmed by the inconvenience of moving dozens of online bill paying arrangements to another bank.

http://www.nytimes.com/2011/10/16/business/online-banking-keeps-customers-on-hook-for-fees.html?nl=todaysheadlines&emc=tha23

[MineralMan]

1. That's certainly true.

Even more so if you have automatic deposits. Most people's Social Security checks get automatically deposited and it takes time to change that to a new account. Same with lots of people's paychecks. That's probably easier to change than SS, but one of my wife's clients does automatic deposits, and it wasn't that easy to get it set up right the first time, since he's a small business guy. We never do automatic bill payments, though.

[Ruby the Liberal]

3. Define "takes time"

I changed my mom's SS on their website as well as my own unemployment deposit. 90 seconds, max - and that includes logging in and figuring out the navigation.

[dixiegrrrrl]

5. You can do that? OKAY!!!

Something to keep in mind in case my community bank gets out of line.
The "regional" banks around us have all gone broke and/or consolidated.

[MineralMan]

6. Oh, OK. I didn't know you could do that online.

Thanks.

[Ruby the Liberal]

9. It is SO much easier than it was just a few years ago

I know the thought intimidates people - but it really isn't that bad at all.

[Ruby the Liberal]

2. Disagree. It is actually LOADS easier than it was just 5 years ago.

1 Open a new account somewhere else

2 Make a list of all direct deposit and automatic withdrawal/bill pay.

3. Visit the website (or call) each bill pay and give them your new routing & account numbers for your new account

4. Check the old and new accounts and mark off each bill as 'done' as it is moved (paid) by the new account

5. When all bills are marked as 'done', close the old account

Back in the day (some ~5 years ago), you would ave to request a form, fill it out, mail it in (with a copy of a check) and wait for manual processing. These days it is a breeze and takes NO time at all to do. The worst part is making the list and even that is a no brainer by going to the current bank website and scrolling through your bill pay and auto-payments. No excuses.

[OHdem10]

4. This is why the Banks keep pulling their tricks. The people will

think it is too much trouble to change so we can keep
scamming them.

We did not find it that much of a problem to change.

[Speck Tater]

7. And friends kept calling me a Ludite for NOT using automatic bill pay from the bank.

I tried that once years ago and had an awful time getting the bank to stop paying an account I had cancelled. I finally had to close the bank account. From then on I write my own checks.

[sam11111]

8. Identity theft! 20% who bank online lose some money to IT

Astounding stat seen seven yrs ago on MSM.

Only a fool would bank online IMO

[Ruby the Liberal]

11. 7 years ago?

Anything more current than that - as in keeping up with network security?

[county worker]

10. I pay bills on line but I don't use a bank to do it.

Most credit cards and utilities etc. have web sights were you can pay your bills with a debit or credit card or a e-check. They also don't charge a fee most of the time.

[Ruby the Liberal]

12. Even easier

Updating those records is a snap. You change accounts or credit cards, then just put in the new account information the next time you log in to pay a bill. Just like you would do with amazon.com or any other merchant you deal with online.

[Papagoose]

13. It took me less than an hour to make the change

Granted, I need to wait a full pay cycle for my paychecks to start direct depositing into my new, shiny, non-BOA account.

I set up anew checking account, a savings account and two accounts for my kids as well as all of my bill pay accounts in under one hour.

[nichomachus]

14. I moved from B of A and it wasn't all that hard

If you really want to do it, you can

[jtrockville]

15. I'll echo the "it's really not that hard" sentiments...

I switched a few years back. I postponed the move because I dreaded it so much. But was surprised at how terribly easy it was once I decided to just do it.

[sce56]

16. I have the same checks I ordered about three years ago! Most of my bill paying is through

SmartPay at my Federal Credit Union. I fill out the info and arrange the payment online they send the check to get there on the day I picked for it to be paid. It is really easy and their server is secure no problems there.

[MedicalAdmin]

17. translation:

Crap, it might take 15 minutes of my time to set this up with my new bank so I'd rather just drop my drawers and take up the poop shute.

[chalky]

18. Well, that was a finely crafted piece of discouragement.

One frowny face market researcher, and then a whole lot of people who work for banks, telling me how hard it will be if I try to move my money? Nice try, NYT.

[Chan790]

19. The best part (from a former bank insider)

Most banks offer some service with a name like "switch assistant" where they'll do it all for you in moving your old e-bill-pays to your new account with them...usually with some sort of "we won't F this up...or we'll pay you." benefit.

Given their motives are not altruistic. They want to steal you from their competitors, better if by getting you into e-bill-pay they can tether you to them.

[Fearless]

20. I'm moving just as soon as my direct deposit change goes through.

Fuck em.