Bank screwed me over...advice!?

[DaveinJapan]

So I got an account several years ago with a Florida bank, entitled "totally free checking". As is obvious, I live out of the country and I was looking for a bank that I could keep my U.S. dollars in and make deposits into from time to time (such as my Obama refund check which I got for the first time this year! yay!). I learned quickly that this "totally free checking" came with a caveat, which was that I would get slapped with an inactivity charge if I didn't use the account every 3 months. So, dutifully, I sent a dollar every three months (cost me over a dollar to mail!). Sometimes I sent more, but every three months I kept the account active with my deposit.

Now, 4 years later, I checked on my account (actually because they'd neglected to deposit a $100 check, which I can only assume was "lost in the mail" or thrown away by them, one or the other but I'm inclined to believe "other" based on past issues) and found a sudden $8.95 charge. I was surprised, and immediately emailed them for an explanation. They wrote back (along with a "ticket closed" notation) that, CONGRATULATIONS! You are no longer a "totally free checking" customer, you are now an $8.95 a month customer...but you can easily avoid the fee by jumping through several hoops.

Well, I'm not in the country at the moment and there's no way for me to trek to Florida anytime soon to close the account. So, does this mean I have to sit here and watch my account diminish by 9 bucks a month until it is exhausted? And even then, what then? Do I go into the negative and face punitive measures such as reports to credit bureaus?

Anyone know any similar circumstances, and how best to deal with them? If I were in state, I would certainly march down there and close the thing, but I'm not. The thing that pisses me off the most is that I signed up for "totally free checking" in the first place. Do they have the right to summarily change the conditions as it pleases them at any time?

Thanks in advance for any input (and yes, I'm complaining about my own situation but I'm ALSO bringing this up to bring attention to what banks might be up to, in case someone else might be next).

[hobbit709]

1. Transfer all your money to a different bank

and tell them to fornicate themselves.

[DaveinJapan]

4. I've considered that, but I'm concerned about my credit rating.

I could simply withdraw the funds (or almost all of them) with my ATM card from here in Japan. I'd take a horrible hit on the exchange rate to say the least, but that's better than giving it to them!

But then, with an open account, can they not go after my credit rating for a "delinquent account"?

That's my concern (and more to the point, WHY should I have to be concerned with crap like that!?).

[outerSanctum]

14. No - your checking account does not affect your credit rating.

Just write a check and deposit the funds in another account (there are truly free ones all over the internet). The account will purge from their system at the end of the year after tax reporting.... that's all.

You don't need to sign anything or notify anyone - their computer systems will just clean it up when it's at zero. Most banks have an "auto-close" feature that will automatically close out the account after x days at a zero balance.

I've spent a looooong time working on "checking account" computer systems at banks....

[DaveinJapan]

16. Thanks for that info...nt

[melm00se]

15. accounts that hit a zero balance

and stay there (or go negative due to fees) for more than 90 days or so (it depends upon the bank) will automatically close.

Additionally, I know of no bank that reports an account that gets closed due to a zero balance or a negative balance for maintenance fees (but not for NSF fees) to credit bureaus.

[DaveinJapan]

17. Thanks for the info...nt

[melm00se]

21. if you are really worried

draw the account to zero and then email/call them to close the account. most of the time they will wait 30 days (as a courtesy?!?) in case you have any outstanding transactions

[MedicalAdmin]

19. ING direct

Set up an account online. Then transfer all your money out of the bastard bank and at the same time inform your bank that you are closing your account effective immediately. Have a friend print off an email, "sign it" and then mail it for you certified with signature required.

I suggest ing direct because they are 100% online and you can set it up remotely.

Good luck.

[DaveinJapan]

23. Thanks MedicalAdmin but I'm a little confused about the friend part...

Should that friend be in Florida or something?

Why would they print and sign it and mail it? I could print and mail something from here signature required if that's a good idea.

??

In any case, thank you and everyone for all the great tips!

[lillypaddle]

2. Why can't you

just write yourself a check for the balance and then cash the check somewhere else?

[Bonobo]

5. Because they don't use checks in Japan probably.

Nowhere to cash the check is my guess.

[DaveinJapan]

7. Somehow I knew you'd show up Bonobo! :)

Yes, there is no such thing as checking in Japan.

IF, somehow, I could close the account from abroad and then receive a check, there's not much I could do with it. I could sign it over to a family member and mail it back to America, maybe.

I'm VERY interested in hearing all the input here though...thanks everyone! It's good to hear I might have some options.

[Bonobo]

9. Hi Dave.

I have an account in a credit union in the states still. I set it up before I came here.

It really is free checking.

I suggest you find something similar.

-Greetings from somewhere near Himeji!

[DaveinJapan]

11. At the time, I thought it was a sound option...

A credit union would've probably been a better choice, given all I've seen (and this bank, like all the others, has taken a beating in the markets, so I'm not surprised they're trying to squeeze a little cash out of their suckers, er, I mean customers.

Himeji, eh!? Nice!

Wish I were in the countryside these days!

[donco6]

3. $9 a month! That's nuts.

MOve it to ING bank - it's all online and works great. You can set up your new ING account to accept transfers from your existing account through the bank routing numbers. Takes a few days to get it started, but once it does it's great.

[DaveinJapan]

6. Thanks for that advice...I will surely look into it!

[lunatica]

8. After you transfer 99% of your money to another bank call the manager

and have him/her close the account. If they need a signature tell them to scan the document to you and that you'll scan it back to them with your signature. Or that you'll fax it back. PDF files and faxes are good because they don't get lost in transit, and as far as I know no one has found a way of scamming through them.

[sweetapogee]

10. send a letter to the bank

tell them you want to close out your account, inform them that you live in Japan, ask them for instructions. I'm sure they have some form(s) for you to fill out, sign, return and such.

[DaveinJapan]

12. Thanks for the valuable info luna and sweet...and to all nt

[DCKit]

13. I had the same problem with a reputable credit union.

Said I didn't have enough account activity and they harassed me, monthly, for over a year about it, even though I made sure to transfer money in and out, regularly.

I simply closed the account.

In your case, it's not so easy to change banks, but they're not going to give in. Don't waste you're time and effort trying to get them to do the right thing.

[justanaverageguy]

18. Close the account

and put the money somewhere else. You don't have to come to Florida to close an account. You can do from Japan just as easy as any other transaction. I used to work for a Florida Bank that is now Wachovia. Being a transient state, I closed accounts for people who were out of state quite regularly. The bank will close the account and send you a check for the remaining balance if there is a balance.

And yes they can adjust fees as they see fit. It's in the fine print of the agreement you signed when you opened the account.

[DaveinJapan]

22. That's not what they've told me repeatedly over the years.

I've often asked about closing the account (via email AND international phone conversations), because I've often been frustrated with their errors and screwups...each and every time I was told in no uncertain terms "you need to come in to a branch in order to close your account". And believe me, I explained my situation in great detail.

Either they were lying, or your bank is simply better equipped to deal with unusual stuff (more likely, I'd say).

As far as "they can adjust fees as they see fit", while that MIGHT be in the fine print, I would suggest that advertising "totally free" something and then charging for it is a bunch of BS no matter what the fine print says. :)

In any case, thank you much for your input and advice, I do appreciate it!

[Codeine]

20. You can close your account with a five minute phone call.

No need to worry about credit scores or anything -- people change banks all the time.

[tabatha]

24. I would make sure your money is transferred to another

bank and safe before closing.