• Report: #694891

Complaint Review: Webster Bank

  • Submitted: Sun, February 13, 2011
  • Updated: Fri, September 16, 2011

  • Reported By: Antoinette — Windsor locks Connecticut U.S.A.
Webster Bank
2 North Street Internet United States of America

Webster Bank Webstewr Bank Had A Settlement Against Them For Taking Larger Transactions First So you Pay Over Draft fee's and Now They Are Chargeing 8.99 A Month To Bank With Them and Also Now I Got A Message in M Internet

*General Comment: Webster Bank

*UPDATE Employee: Webster Bank

*Author of original report: Re:

*UPDATE Employee: Monthly Service Charge & Posting Order

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Webster Bank Is Now Chargeing 8.99 A Month To Bank With Them
And This Is totally Unfair They Changed There Free Checking For 50 + Free to The Age Of 65 Adding 15 years to get free Checking I Think because of this Class Act settlement Against Them they Are taking it Out on the people to get there Money Back Still Ripping people Off but In a differant Way They Are Not Honest or trustworthy
 Here's My message from Webster bank now to tell customer's what they are Doing Now up front

Dear Webster Online Services Customer, As part of our continued effort to keep our customers informed,  please review this information about how Webster processes your banking transactions.Transactions are posted in the order shown on the grid below. Within each category, transactions are posted in dollar amount order, from highest to lowest. This means that your balance will be depleted by large transactions first within each category. If you have insufficient available funds to cover all the transactions that are processed in any day, overdraft/insufficient funds fees will be incurred, and there may be more fees than if we posted items in a different order.

This report was posted on Ripoff Report on 02/13/2011 10:51 AM and is a permanent record located here: http://www.ripoffreport.com/r/Webster-Bank/internet/Webster-Bank-Webstewr-Bank-Had-A-Settlement-Against-Them-For-Taking-Larger-Transactions-F-694891. 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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REBUTTALS & REPLIES:
1Author 3Consumer 0Employee/Owner
Updates & Rebuttals

#1 General Comment

Webster Bank

AUTHOR: Charlie613 - (U.S.A.)

I just read a post that webster bank takes the higher amounts out first, how can that be, It should be in the order they came in,  Thank god I don't have them 
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#2 UPDATE Employee

Webster Bank

AUTHOR: Anonymous - (USA)

I didn't state that customers wanted the $8.95 fee, I was just setting the record straight.

Concerning the checking account that was for 50+ (that is no longer offered), the only thing customers gained who fit those age parameters was interest without having to maintain a daily balance in order to get interest. They didn't get any other special perks (i.e. free checks, etc). We offered (but no longer) different types of accounts for people who weren't 50+ that gained interest but they had to maintain a daily balance in order to get it.

I am not sure if you weren't aware of what that type of account offered but with how you stated it, you made it seem like people who were 50+ weren't subjected to a fee or fees. That is twisting what Webster Bank actually offered and now offer now. We, at one point, offered free checking to everyone (no longer offered-Totally Free checking) that had no fees or minimum balance. Now that was offered to anyone old enough to have a checking account. Saying that we changed the age from 55 to 65 is incorrect because people who were 55 could have free checking. Everyone is entitled to their opinion, but it isn't proper to state the factual information incorrectly.

Check out www.websteronline.com. We offer 3 checking accounts. Our basic checking account is able to be free as long as you either use a debit card 10 times within your monthly statement period or if you maintain an average balance of $1,000.00. The other 2 accounts we offer (WebsterOne and Premier), are still subject to a service charge if you don't maintain the daily average balances. No one gets free checking, unless they meet the requirements of the type of account they have.

In your own home, if you choose to have a telephone or internet service, doesn't that cost you something monthly? If you want to mail out letters using the USPS, doesn't it cost you money for the stamps you put on those letters? Same thing for any and all banks! It costs money to do what the average person takes for granted when it comes to banks.

Another misconception is that we decided to start charging the fee of $8.95 had something to do with the settlement. No, it's more like, Webster Bank woke up and looked at other banks (i.e. Bank of America, TD Bank, Peoples Bank, etc) and realized that "free checking" was getting phased out. Those banks were making money and we weren't. Banks are businesses people! Not just a place to house your funds! No one but small town banks could afford to offer "free checking" without setting requirements on their checking account.

Webster Bank also had a very lenient policy on giving back overdraft fees. Bank of America and TD Bank: You get 1 or 2 courtesy fee rebates within 12 months and that is it! They adhere to those policies. People will call Webster Bank over and over again and ask for courtesy fee rebates and we have already granted them $100, $200, $300 in courtesy fee rebates. That is just ridiculous! But who cares that Webster Bank was losing thousands and thousands of dollars a day due to people not being able to manage their money.

Attacking Webster Bank because we longer offer "free checking" is also just ridiculous. Find a big name bank that offers a free checking account without having to either maintain a daily balance, direct deposit, debit card usage, automatic transfers, etc. Take a look around. Check out Peoples Bank, Wells Fargo, TD Bank, Chase Bank, Bank of America, etc. These banks started setting requirements on their checking accounts at least a year ago so that customers didn't have to pay service charges. Because if you find a big name bank that has no requirements whatsoever and you still get free checking, that would be just amazing in this day and age.

 Again, Webster Bank is a business and it's time for customers to take responsibility for their own horrible money managing skills.
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#3 Author of original report

Re:

AUTHOR: Meow1941 - (U.S.A.)

In regards too $8.95 a month, sorry I was off by.04 cent How can you say this is what the customers want?? And to change it from 55 to 65 in order for fee waived Are you kidding me? Also we listen and you got it, Oh Yea we got it alright who would agree to those terms, You say the customers well do you have those reports? You got people in there as customers with free checking Then after some point you start to charge them another Sneaky trick from Webster Bank. Another thing web Internet and mobile Internet are another a of whaling In another customer then what start charging for that This is my opinion that now that you started charging a $ 8.95 fee is to gain some money back on the settlement Against Webster Bank so it will lower your loss By gaining it from customers it is so wrong you can Break it down in a shell but it all is the same

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#4 UPDATE Employee

Monthly Service Charge & Posting Order

AUTHOR: Anonymous - (United States of America)

The monthly service charge for a Webter Bank Value checking account is $8.95, not $8.99. It was decided by the "customers voices", that Webster Bank offer "free checking" to people 65 and older who had a direct deposit come into their account. You voiced your opinion and Webster Bank listened.

It was unbelievable as to how customers reacted to the service charge on the account. Any major bank has their own policy and procedure for how you can get "free checking" but it isn't automatically free. I bank with 2 other banks besides Webster Bank and with one bank, I have to have a direct deposit going into the account to avoid a monthly service charge and with the other bank I have to maintain a daily monthly balance of $100.00 in order to avoid a monthly service charge. I don't understand the shock and outrage it caused! Unless you go to a "small town" like bank (with that, I mean a financial institution who has a limited amount of branches/locations), you just can't get "free checking" without doing something to avoid the monthly fee.

And one thing an average consumer doesn't know or think about is that it costs banks money to maintain your account. The following things (and not limited to) cost the bank money: Online Banking, Online Bill Pay, any automatic phone system they may have, money to pay employees that you may stop in and see at a branch or call over the telephone, mobile banking, paper statement production, mailing costs, etc. These are some of the things that banks offer to their customers but surprisingly, they all cost money!

Now we get to posting order...

First off, Webster Bank wasn't trying to be crooked by their "posting order". Emails were sent out and so were paper mailings. They weren't trying to hide a thing. Webster Bank was trying to make their customers aware of what its banking policies were.

You can't have $500.00 in your account, write out a check say for rent for $500.00 and then go write a check to the grocery store for $150.00 and figure to yourself, "I'll just accept the overdraft fee for my rent but my grocery store check should be fine." You have to have $650.00 in your account, because, let's face it, you just spent $650.00, without having the $150.00 in your account. What happened to customers accepting the responsibility of managing their own money?!

Regardless of how you put it, people will still continue to mismanage their money and blame someone else, most likely, the bank for their lack of managing their own money. You as a customer are supposed to responsible enough to know how much money is in your account at all times. Take a minute to find out when deposited funds will be available. Visit your local Webster Bank branch, ask questions! Call customer service and ask questions! Or you can always read the disclosure you are given. It's broken down into chapters so you know where to read. It's not written in an alien language or full of legal jargon. It is straight to the point and explains Webster Banks policies and procedures.
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