Report: #1196513

Complaint Review: Webster Bank

  • Submitted: Fri, December 19, 2014
  • Updated: Fri, December 19, 2014
  • Reported By: C.Jay — Fairhaven Massachusetts
  • Webster Bank

    Nationwide
    USA

Show customers why they should trust your business over your competitors...

I got a Webster checking account with my loan in a plan to swap over from Bank of America. After digging into details and limitations of their online banking, my wife and I decided against it, but kept the checking account open with a specific balance to keep our loan rate down.

After paying off our loan, we reduced the account to 0 and tried (and failed) to close it, not being able to get to a bank together.

We finally have time to close it, and find almost $100 in fees. Apparently, they charged us one service fee for not having a minimum balance, then started piling daily $5 "Overdraft Fee" hits.

When we called to contest it, we were told not-too-politely that this is the fine-print of the policy, and that our account would be put into collections if we did not pay it off. So from a zero-debt checking account, they're now attempting to extort $100 in junk daily fees. Having worked for a collection company before, I know that banks have an agreement over DDA overdraft collections, that no bank will let you open a checking account if you have any other checking account in DDA collections, even if contested.

No escalation routes, no nothing. Pay us money we have no right to demand, or we will ruin your credit and prevent you from opening bank accounts with other banks.

I will have a BBB complaint pending as of this weekend. This is a warning to everyone. Do not bank at Webster.  They're buried in the kind of malicious fine print that won't stand up in court because they know they don't have to go to court.

Please, anyone who reads this, stay away from this terrible bank. They're not the great bank they were 10 years ago.

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This report was posted on Ripoff Report on 12/19/2014 10:38 AM and is a permanent record located here: http://www.ripoffreport.com/reports/webster-bank/nationwide/webster-bank-disthonest-fee-policies-nationwide-1196513. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
1Author
2Consumer
0Employee/Owner

#1 General Comment

Not really...

AUTHOR: Striderq - ()

In your second post, you state "Third: Hidden fine print is not legally enforceable if a reasonable person would not expect that fine print and it is not protecting anyone.  There is an incredible amount of legal precedent behind that." Not sure what legal precedent that you're looking at but the requirement for the bank is to tell you about the fees that can/might be accessed against your account. This is done in the Terms & Conditions paperwork provided during account opening. Since the bank told you about the fee, if/when your account situation triggered a fee the bank legally charged you. Since that put your account into a situation that triggered another fee the bank legally charged you. There was no maliciousness. It wasn't a case of them saying "Yeah we can stick it to him this way". It's a case of you not properly closing the account.

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#2 Author of original report

Malicious *is* The word

AUTHOR: cmartin - ()

I don't really care about you minding your own business.  I'm not sure why the defensive attitude, when you claim to be a fellow consumer.

 

First:  Companies that sneak "daily $5 fee" into their fine print and do not clearly explain that are being malicious.  I have repeatedly seen terms like this fail when actually pressed.

Second: nothing you said supports the point of your rebuttal.  Either sneaking $5/day fees is malicious, or it isn't.  Nothing you said supports that it isn't.

Third: Hidden fine print is not legally enforceable if a reasonable person would not expect that fine print and it is not protecting anyone.  There is an incredible amount of legal precedent behind that.  I'm not complaining about the $10 fee, as much as I dislike it.  I am complaining about the massive number of daily fees that have been incurred after I tried to close the account.

I don't get your whole "mind your own business" emotional bounce.  Why the emotional involvement?  Are you just here trolling (I usually just go to the BBB first to get my results, but decided this was particularly malicious...I don't know if trolls are common here), or are people actually paid to make it look like legitimate complaints are less-so?

So if I may ask, what's your beef with me?  You've genuinely added nothing of value for or against my complaint.  People need to know about the hidden policy of daily overdrafts against fees, which has never been a standard practice at any bank I have used in the past.  Do you disagree about that?

 

If I knew about that policy, I would never have opened a Webster Bank account.  Everyone I tell about this story has said the same.

 

Thanks, Jim, for your rebuttal adding visibility to this malicious action on the part of Webster Bank.  Feel free to keep posting.  I don't know why this is your business (paid employee, or just like trolling people?), but I have no problem with replies in a public forum.

 

I'm curious, though... what would you do if you had an account without a negative balance that you were told you could not close then accrue a negative balance and fees?  Would you smile and pay it saying "thank god this bank is so good to me.  They could have charged 100x as much and I'd have had to pay it as well"

 

This place is for rip-off reports.  Companies hiding this in their fine print are attempting to rip people off.  It was a rip-off, and so I'm here.

Just a reminder for you, and for any other reader... Please, if you care about your money, don't do business with Webster Bank as long as they keep policies like this.  This is dishonest.  I'm going to have to pay this before I have time to really contest is, so what I want to be sure of is that I let as many other people know so they cannot be ripped off the way I have.

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#3 Consumer Comment

"Malicious" Isn't The Word!

AUTHOR: Jim - ()

Here's EXACTLY what you brought forward for the world to see...YOU opened this account with this bank and in the process YOU were given paperwork which governs the business arrangement between you and the bank.  All the Terms and Conditions are contained within this paperwork which is written in English.  You move forward to close the account, but wait, since YOU FAILED TO READ the paperwork, you get hit with penalties.  By your own admission, the closing of account conditions and minimum balance provisions are contained in that paperwork...the paperwork which you failed to read.  What happens now?  Oh yes...you come here and stomp your feet, cry and wail and blame this bank because YOU failed to read the T and C's of this account!  Of course, what they did is illegal!  Really?  Why?  You agreed to them when YOU opened the account.  You can wail and b**** all you want but the bottom line is YOU are to blame...plain and simple!

Oh yes, one more thing...let me save you the effort, the keyboard strokes and the time...don't bother writing back "You should mind your own business!" because this is a public site.  Also, don't waste the effort to wail and stomp your feet some more and say "You must work for them!", because I don't!!!

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