LAT: Citibank slaps customers with $15 monthly fee for checking

[ellisonz]

Citibank slaps customers with $15 monthly fee for checking
September 30, 2011 | 1:02 pm
Another day, another new bank fee.

As the uproar swelled over Bank of America Corp.'s planned $5 monthly charge for debit cards, megabank rival Citigroup Inc. was telling checking accounts holders that it would sock them with a $15 a month fee unless they maintain a balance above $6,000.

Customers such as Cheryl Holt of Burbank were complaining to The Times about the letters they received this week from Citibank, Citigroup’s retail arm. Holt said she opened the envelope and was confronted by what she called an "absurd salutation."

"Customers like you have told us that what they want from their banks are simple options and great rewards," the giant New York bank said. "We heard you and are writing to let you know that we are making some changes to your EZ Checking Package."

UPDATE: A Citibank spokeswoman said customers can avoid the fee by opting for a “basic” checking account, having at least one direct deposit made into it each month, and making at least one automated bill payment from the account monthly.

http://latimesblogs.latimes.com/money_co/2011/09/citibank-slaps-customers-with-15-monthly-fee-for-checking.html

Ouch. People use your local credit union. :fistbump:

[CaliforniaPeggy]

1. These fees do not exist at my credit union.

I could not be happier!

[ejpoeta]

3. even if they did you would be benefiting in the end because at least at my

hubby's credit union he gets dividends. As far as I know he has no fees for his card. I have an account at m&t.... if they try this crap i will definitely go to the credit union. I have kept mine because I thought it important to keep accounts at different banks.

[sarcasmo]

6. Same with our credit union, no fees and no problems.

[dkf]

2. What do you get for the EZ checking vs basic?

[ellisonz]

4. "A full-service package that recognizes your total relationship with Citi."

https://online.citibank.com/US/JRS/pands/detail.do?ID=ChkCBA

[dkf]

5. $6000 across all these types of services actually isn't that hard.

Checking (Interest or Regular)
Eligible Citi Personal Wealth Management investment accounts1
Citibank credit cards2, 3
Loans and credit lines3
Mortgages3
Retirement accounts4
Savings (CDs, Day-to-Day Savings, Money Market Accounts)

One Mortgage...done.
Investment account/retirement account...probably done.
Credit card...I hope that isn't the $6000 balance that pushes anyone over the edge.
Line of credit...that is easy enough.

[ellisonz]

7. Not really designed for us poor young folks.

[dkf]

11. Sadly that may be where the credit card balance works.

[Cal Carpenter]

12. I must live on a different planet than you

[dkf]

15. You don't have a mortgage, retirement, credit card debt, savings, investments totaling $6000?

How's about a car loan?

Funny thing is my brother and I would qualify on opposite sides of the spectrum, I save and invest and he has debts.

[Cal Carpenter]

16. My personal situation is not relevent

This is about real conditions, not anecdotes. There are millions of people in this country who don't have any of those things, and if you don't realize you must literally have your head in the sand. Most of them are not posting on DU, that doesn't mean they don't exist.

[dkf]

17. Those must be the people without a picture ID.

[47of74]

8. If I had a checking account my message would be for them to fuck themselves

[mike_c]

9. my credit union provides great service and requires only $50 on deposit....

Free checking, online banking, etc. All the banking services I need, MEMBER OWNED.

[Shagbark Hickory]

10. That's funny, just yesterday CHITTYbank said they had no plans for a checkcard fee. I guess they had

other plans :rofl:

[ellisonz]

14. Pigs at the trough.

[Lorien]

13. Call it what it is; class warfare by the corporate class on the 99%. nt

[SoCalDem]

18. Unfortunately, banking has evolved into a mode of operation that is NOT customer-friendly

Way back in the day, standard checking accounts had "per-check" charges, which made them pretty pricey since most people HAD to pay bills by check..in the mail, unless they wanted to wander all over town paying bills one by one.

Banks made money on checking accounts because most people needed them. To woo you to their bank, instead of one of the other three banks on opposite corners. they offered toasters, dishes, cookware and other insane "premiums"..(the bank I worked for gave away WIGS..and we all had to WEAR one of them at work, to "advertise".)

Very few companies even offered direct deposit, so most people made a weekly pilgrimage to the bank.

With online banking, debit cards, and our checkless society, I'm surprised that banks have taken so long to start doing away with the "freebies".

I looked at my checkbook just now, and the last "paper-check" I wrote was July 14th.

Most people also have an auto-payment or two, and companies love direct deposit because it saves them money too.

There are always banks we love to hate, but most of us use a bank, and most communities do still have small banks/credit unions that offer "free checking" or accounts with lower fees.

'People will have to decide for themselves if they want to bank BIG, or small..