From: "Keith F. Lynch" <kfl at KeithLynch.net>
To: WSFA members <WSFAlist at KeithLynch.net>
Subject: [WSFA] Bank dirty tricks
Date: Tue, 21 Jun 2016 19:38:49 -0400 (EDT)
Reply-To: WSFA members <WSFAlist at KeithLynch.net>

Yesterday in the mail I got a letter from my bank saying that a large
long-term CD of mine had matured, and that they had taken the liberty
of renewing it for the same long term -- with a new much lower
interest rate of 0.2 percent.

So today I went to the bank, to cancel it.  The banker explained that
I only had ten days to cancel this CD which I had neither requested
nor been informed of until yesterday, and that the ten days had ended
a week ago.  I said I didn't care that I wouldn't get three weeks of
0.2 percent interest -- when I see that much money sitting on the
sidewalk, it's not worth my while to bend over and pick it up.  The
banker explained that no, it wasn't just a trivial amount of lost
interest, it was a $200 penalty.  And he didn't have the power to
waive it.

I told him to contact whoever does have the power to waive the
penalty, since if it wasn't waived, I would be removing all my money
from the bank, and advising my friends and relatives to do the same.
I also pointed out that theft of $200 is grand larceny, a felony, and
that I could go to a magistrate and swear out a warrant, and let the
courts decide which bank officers deserved prison for this serious
crime.  (Very likely they would prevail in court, but only after
spending a hell of a lot more than $200 on legal fees.)  I could
also go to the FDIC and try to get their charter revoked.

(I didn't say I *would* contact the state and federal government, but
merely that I *could*.)

I can't imagine they won't waive it, unless the bank is either
hopelessly incompetent or so close to bankrupt that they'd rather
have $200 now than retain a profitable long-term customer.

I'm posting this to warn people to watch out that your bank doesn't
pull a similar dirty trick.  See if you can get your bank to put a
promise in writing not to put your money in a worthless investment
without your permission and charge you to get it back.  I'll name the
bank only if they fail to waive the fee.

Too bad that bank wasn't around in 1626.  If Peter Minuit had spent
$24, not on Manhattan, but on a 0.2% CD, thanks to the miracle of
compound interest his estate would be worth $52 today!  No wonder the
bank just assumed that of course that's where I would want to put my
retirement money.