• Report: #504137

Complaint Review: TCF Bank

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  • Submitted: Sun, October 04, 2009
  • Updated: Sun, October 04, 2009

  • Reported By: Debrah — Milwaukee Wisconsin USA
TCF Bank
tcfbank.com Internet United States of America
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  • Web:
  • Category: Banks

TCF Bank OVERDRAFT FEES, OVERDRAFT FEES, AND MORE OVERDRAFT FEES!! TCF is forcing overdraft fees and making customers think we are irresponsible consumers! Internet

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ORGANIZED CRIME!!!   PEOPLE!! PLEASE FILE A COMPLAINT WITH THE FEDERAL RESERVE AT federalreserve.gov- you can do it online. The more complaints, the better!


TCF has found a way to manipulate checking accounts to force overdraft fees.  I have been a customer for over 7 years and I have not had a complaint with their service until they changed to their new policy effective "APRIL FOOL'S DAY" 2009.  I have been charged over $500 in overdraft fees in the last two months.  I call and try to work things out and I always get some undertrained salesperson who has very little knowledge of the banking industry because they sound more like salespeople.  I never get a clear understanding of why this happened.  I STILL have no idea how to manage my account based on their new "form of manipulation".  I now see after reading the many posts, on this website and many others that, I am FAR from the only customer who is being attacked.  IN CASE MOST OF YOU NEVER NEW THIS, TCF RELIES ON REVENUE FROM OVERDRAFT FEES.  THEY STAND TO GROSS HUNDREDS OF MILLIONS OF DOLLARS IN OVERDRAFT FEES ALONE FOR 2009.  


Read the following article:


Knight Ridder/Tribune  08/16/2009 11:10 AM ET


Overdraft fee rules could burn TCF: Federal proposals to limit such charges could force the bank to eliminate its popular "totally free checking" product. And that could prove painful for TCF shareholders. [Star Tribune, Minneapolis]

Aug. 16--Every few years, the nation's consumer groups rise up against bank overdraft fees. Yet each time, the outrage subsides with no lasting change.


But this time, changes are coming and analysts say that shareholders of TCF Financial Corp. have cause to be concerned.


The Federal Reserve is considering two alternative proposals aimed at protecting consumers from abuse of overdraft fees. One would require banks to obtain permission from customers before charging them overdraft fees on ATM and some debit card transactions. The other would require a bank to ask permission before enrolling someone in an overdraft program. A decision is expected by year-end.


The proposed changes could prove particularly painful for TCF Financial -- Minnesota's third-largest bank by deposits -- because it relies more on overdraft fees than most of its regional rivals. A research report by J.P. Morgan Chase & Co. estimated that 18 percent of the Wayzata-based bank's revenue is from overdraft fees. For this year, that will amount to about $200 million, according to J.P. Morgan.


During a July conference call with analysts, TCF Chief Executive Officer Bill Cooper seemed to dismiss the issue. "There's a lot of smoke about that," he said, referring to proposals concerning overdraft fees. He said that the technology doesn't yet exist to notify debit card customers when their accounts are about to be overdrawn. And even if it did, retailers and banks wouldn't want it.


"The merchants don't want that, the customers don't want it and the banks don't want it," he said. "So I'm fairly optimistic on that."


Cooper noted that, if the rules became too restrictive concerning overdraft fees, the bank could simply go ahead and charge monthly maintenance fees for its checking accounts -- effectively ending its highly popular "totally free checking" program. "That's where it will go back to," he said. "Totally free checking will disappear and there will be a monthly maintenance fee."


But some analysts who follow TCF aren't convinced that switching to such a fee would be painless for the bank.


Over the past two decades, TCF has built its retail business on the idea that its checking accounts are free (minus overdraft fees). To end that program is to risk eliminating a competitive advantage, some analysts argue.


In a July 26 research note, J.P. Morgan analyst Steven Alexopoulos cited the possibility of new rules concerning overdraft fees as one reason he was keeping an "underweight," or "sell," rating on TCF stock.


"If the company started charging customers $10 a month, we believe competitors with far less sensitivity to overdraft fees would use that as an opportunity to gain customers from TCF," he wrote.


J.P. Morgan has a 12-month price target of $14 a share on TCF's stock. The bank closed Friday at $14.20.


Although public outrage about overdraft fees has come and gone before, this time the movement comes at a particularly grisly time for banks. Consumers are "genuinely angry" about banks collecting large windfalls from overdraft charges and other fees as the economy struggles and a number of banks have received large injections of capital from the U.S. Treasury, said Uriah King, senior policy associate with the Center for Responsible Lending, a consumer advocacy group in Durham, N.C. This year, banks will collect $38.5 billion in overdraft fees, nearly double the $19.9 billion it collected in 2000, according to an estimate by research firm Moebs Services.


As the recession has intensified, large banks have found new ways to raise their fee incomes to offset declining revenue in other areas. For instance, this year Bank of America doubled its limit to 10 overdraft fees per account per day.


This report was posted on Ripoff Report on 10/04/2009 11:00 AM and is a permanent record located here: http://www.ripoffreport.com/r/TCF-Bank/internet/TCF-Bank-OVERDRAFT-FEES-OVERDRAFT-FEES-AND-MORE-OVERDRAFT-FEES-TCF-is-forcing-overdra-504137. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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