Wachovia/Wells Fargo Stay or Go? (mortgage, credit, loan)

[oldraider]

We left Wachovia after 25 years with the change coming. How many of you did the same?

[Cletus Awreetus-Awrightus]

i'm glad wells fargo is taking over. i've been a wachovia customer for years, and they've just continually gotten larger, and worse.

wells fargo seems to have much more competent management and better online banking. i don't see where the banking products are changing, and surely their customer service can't be worse than Wachovia's.

[nc2sc778]

I am in the process of moving all of my bank business (not just Wachovia) to a Credit Union. Much better service, lower rates, etc. The difference in service is clear. Granted not as many ATMs but I rarely use cash for anything these days anyway; I just use my checkcard.

[arbyunc]

As a former legacy Wachovia employee who was completely baffled by the decision to merge with First Union, I think Wells is a much better alternative. For the sake of my piddly stock holdings in the company, I was thrilled that Wells took over from the bumbling FU management.

On the other hand, all large banks are seeking to squeeze every bit of revenue they can, so we're seeing fees creep up. They are test marketing a plan now that imposes an annual fee for using a debit card. If they adopt this in my area, I'm done with them.

[oldraider]

My understanding is that they pull out drafts before days before they are due. If they do that with people's mortgage payment that could be a problem for many. It seems they are trying to greatly increase overdraft charges with that practice. There is also no one left in our branches that we recognize. They are all contract help, there is no relationship at all. With the draft thing if you state it is to be done on the 8th, thats the day they should do it unless it is the weekend. Honor the customer request.

[Since72]

Wells does seem to manage better. Unlike Bank of A*******. They seem to care just a bit more. I do my banking at the Community bank level. With Southern Community. Great place. Every branch the tellers are great. Unlike the big guys.

[TuborgP]

Originally Posted by oldraider

My understanding is that they pull out drafts before days before they are due. If they do that with people's mortgage payment that could be a problem for many. It seems they are trying to greatly increase overdraft charges with that practice. There is also no one left in our branches that we recognize. They are all contract help, there is no relationship at all. With the draft thing if you state it is to be done on the 8th, thats the day they should do it unless it is the weekend. Honor the customer request.

Verrrrrrrrrrrry true. I just posted about this in the retirement forum and it is and will be a problem for some. There was a special notification about it online this week so folks need to contemplate and react appropriately. Wachovia was wonderful in this regard. I had a personal banker meeting about the change over and the person who met with us was very honest about the changeover. The will bill you on a payment the day they send it not the day it is due. They tell you it will be withdraw from your account up to five days prior to the due date.

[nc2sc778]

Originally Posted by arbyunc

On the other hand, all large banks are seeking to squeeze every bit of revenue they can, so we're seeing fees creep up. They are test marketing a plan now that imposes an annual fee for using a debit card. If they adopt this in my area, I'm done with them.

I would say all banks are doing this in some way shape or form. When the LAST Congress passed all these new regs, it forced banks to completely change the way fee income is structured and generated. Banks are a Business and if they can't generate fee income to stay in business and turn a profit for their shareholders, why even bother to exist?

This basically means that now the people who can't manage their finances so well are paying less in various fees while those that did manage their money well are paying more. Sure there were some good things in that bill but most of it is just forcing the average person to pay more in fees, one way or another, hidden or not.

Not saying it is right or wrong but the facts are what they are. That is why I switched to a Credit Union several years ago and am in the process of moving the rest of my financial business to them. They still need to generate fees to pay the overhead but they are non-profit so anything above the operating expenses goes back to the customers (members) as dividends.

[arbyunc]

Originally Posted by nc2sc778

Banks are a Business and if they can't generate fee income to stay in business and turn a profit for their shareholders, why even bother to exist?

Yes, they need to turn a profit, but where and how the profit is made is the crux. Debit card fees make no logical sense to me. Debit cards are cheaper, much cheaper, for banks to process than paper checks. So why would paper checks be absolutely free, but debit cards carry a fee?

Could it be because they have to use fee revenues to cover exorbitant executive salaries, huge losses in the mortgage sector, bad loan decisions, and just plain dumb business decisions?

[nc2sc778]

Originally Posted by arbyunc

Yes, they need to turn a profit, but where and how the profit is made is the crux. Debit card fees make no logical sense to me. Debit cards are cheaper, much cheaper, for banks to process than paper checks. So why would paper checks be absolutely free, but debit cards carry a fee?

Could it be because they have to use fee revenues to cover exorbitant executive salaries, huge losses in the mortgage sector, bad loan decisions, and just plain dumb business decisions?

I am not trying to defend the Banks by any means. I already stated I am all but completely removed from banks as it is. I will however say that many (but certainly not all) of the so called "bad loan decisions" were a result of yet more government regulations. Check out the Community Reinvestment Act of 1977 sometime. Also, when people are walking away from their homes owing sometimes hundreds of thousands of dollars more than the property can be sold for, where do you expect them to get the money to pay for that loss?

As far as Debit Cards go, it is easier to collect fees from Debit Card transactions because of volume, pure and simple. Check based transactions are down dramatically since Debit Cards have become so commonplace. Also, as of 10/1/11, retailers are now able to control how these transactions are routed for maximum savings to them so processing Debt Transactions just got a little more expensive for banks. That is why the timing is what it is on these Debit Card use fees.

The good thing is that people have the right to choose a bank or a credit union or anything at all. One thing that drives me absolutely crazy is all the complaining people do about the "Big Banks" but the vast majority JUST WON'T GIVE THEM UP.

If anyone is upset about the fees, big salaries or whatever else, just LEAVE. It is that simple. If enough people do that they will have to change their business model. They sure won't do it otherwise.