TD Bank Announces Higher Customer Fees

In the controversies that have swirled around bailouts, foreclosures, customer fees and executive pay, one bank that has avoided much attention is TD Bank. The parent company, more properly known as “Toronto-Dominion Bank” (hence, “TD”), is headquartered in Canada, and has tended to play by more traditional banking rules and avoided American media attention.

But today, one day after the Bank of America aborted their plan to increase customer fees, TD Bank sent letters to depositors announcing an increase in the types and amounts of customer fees that they will be charging.

We are in an era of financial crisis, in which the largest financial institutions have been declared to be “too big to fail.” And yet, TD Bank is a glaring example of a multinational bank that is the result of the mergers or purchase of dozens of once-small, community banks. At least 39 once-independent financial and insurance institutions in the United States alone (listed at the end of this post) have been gobbled up by this behemoth.

Today, TD Bank is the 6th largest bank in North America, and the second largest in Canada. Over 41% of the company is owned by Financial investment houses and other banks. It is the largest bank in Maine (controlling over 40% of the market share); within 1% of the being the largest bank in Vermont (with a 21% market share); the second largest in New Hampshire (with a 19% share, it is larger than Bank of America); the third largest in New Jersey; and fifth largest in Massachusetts.

In 2009, due to “industry trends” and the global financial crisis, Toronto-Dominion Bank responded by cutting Chief Executive Ed Clark’s salary by 5.5%, to a “mere” $10.4 million Canadian Dollars ($9.8 million US). This, I guess, should make us feel better about large banks.
Meanwhile, Yahoo Financial Analysts predict that TD Banks profit will increase 354% by this month next year.

Part of that profit-enhancing plan includes the following new fees on customers:

Money Orders: increase from $4 to $5

Bank Checks: increase from $4 to $8

Incoming Wire Fee: increase from Free to $15

Stop Payment Fee: increase from $25 to $30

Printed Check images with statements: increase from Free to $24 per year

Telephone or online bill pay: increase from Free to $9.00 per transaction for all transactions beyond 6 per month

Last year TD Bank was the subject of a class action suit for the manner in which it charges overdraft fees. Customer Donald Kimenker claimed in his complaint that TD Bank “deceptively reorders” an account’s debit card transactions in its computers to maximize overdraft fees. Such fees are processed from highest dollar amount to lowest, rather than in chronological order of purchases, according to the complaint.

“Charging the largest debits against available funds ahead of smaller debits results in more overdraft fees, as available funds decrease faster than they would otherwise, thereby generating hundreds of millions of dollars in additional overdraft fees for TD Bank,” according to the complaint.

Kimenker claims that a customer with $1,150 in an account who makes six debit transactions totaling $180 and then writes a $1,100 rent check would have overdrawn her account by $130. Rather than charging a single $35 overdraft fee on the rent check, TD Bank processes the rent check and then charges five separate $35 fees for a total of $175, according to the complaint.


It’s never too late to Move Your Money to a Credit Union

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The once-local institutions that have been swallowed into TD Bank are as follows:

Portland Savings Bank, People’s Savings Bank (Lewiston, Maine), Rockland Savings Bank, Penobscot Savings, Waterville Savings, Franklin County Savings Bank (St. Albans VT), Lamoille County Bank & Trust Company, Woodstock National Bank, First Vermont Bank & Trust Company, Granite Savings Bank & Trust Company, Howard National Bank & Trust Company (Burlington, VT), Northeast Leasing, six branches of Casco Northern Bank, First Coastal Bank (Portsmouth, NH) Merchants National Bank (Dover NH), First National Bank of Portsmouth (NH), Oxford Bank & Trust Company, Mid-Maine Savings (Auburn, Maine), Bankcore, Inc / North Conway Bank (NH), Bank of New Hampshire, Family Bancorp (Haverhill, Mass.), Atlantic Bancorp (Portland, Maine), CFX (Keene, NH, originally Cheshire County Savings Bank,), Springfield Institution for Savings Springfield, Mass.). Farmington National Bank (NH), Evergreen National Bank (Glens Falls NY), Andover Bancorp (Mass.), 17 branches of MetroWest (Mass.), Ipswich Bancshares (Mass.), Warren Bancorp (MA), Community Insurance Agencies, Inc., Bancorp Connecticut, American Savings Bank (New Britain, CT), Cape Cod Bank & Trust, Boston Federal Savings Bank, acquired Hudson United Bank (Mahwah, NJ), Middletown Savings Bank (NY), Interchange Financial Services Corp (NJ), Boothby & Bartlett Insurance (Waterville, Maine), and Commerce Bancorp (Cherry Hill, NJ)


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Keene Bank of America protest yields immediate results

Today, from 11:00 to 2:00 pm, volunteers with Occupy Keene stood outside of the Keene Bank of America branch to encourage that bank’s customers to close their accounts and support local credit unions instead.

While about seven demonstrators stood in front of the bank singing, passing out flyers, catching much of visual attention of passers-by (and, one case, sporting a Guy Fawkes mask), two others (including your blogger) went around the back of the bank to catch drivers as they exited the drive-through. In all, over 250 flyers were given out to bank customers, each of whom was engaged in direct conversation about the “Move Your Money” movement. One side of our flyer chronicled the fraud, fees, foreclosures, and outrageous actions of the Bank of America since 2007; the other side explained the advantages of using local credit unions, with step-by-step recommendations as to how best to smoothly transfer banking operations from one institution to another.

One customer, a young man who appeared to be in his late twenties, excitedly responded to us, “I just did it! I just opened up an account at the credit union, and I closed my Bank of America account!”

Indeed, he wasn’t alone: a phone interview with the Cheshire County Federal Credit Union by your blogger confirmed that several people came in today to open new accounts, and self-identified as those leaving the Bank of America.

For others, it was just the encouragement they needed. “You know, I’m gonna do this! They just charged me seven bucks just to cash a check!” said one very upset man to me as he exited the Bank of America. In fact, the response overall was overwhelmingly positive and supportive, with most customers smiling, offering ‘thumbs up,’ or expressing outright solidarity. Some bemoaned the fact that BoA owned their mortgage, and they felt they couldn’t ‘escape.’ Others noted, with regret, that their children attended colleges where the BoA has a contractual monopoly on-campus.

Cheshire TV covered much of the event, and interviewed both customers and demonstrators. Overall, the effect of this effort came not from our numbers or loudness, but from our one-on-one conversations with a very specific target population that is already fed up.

Bank Transfer Day: The 5th of November

In a post last week on this blog Bank of America, I highlighted some of the Greed, Bailout activity, Fraud, and Fees engaged in by that bank. But let’s be clear: The Bank of America is certainly not alone. Citibank, J P Morgan Chase, Wells Fargo, and other multi-state, multi-national banking powerhouses have all been involved in foreclosure scandals, bailouts, speculative gambling on hedge funds, the destruction of the global economy, and the imposition of fees on working class depositors.

And last but not least, let us never forget that the bailouts they received from Washington politicians of both parties – bailouts that were given, supposedly, because they were “too big to fail” - were given in reality because 25% of the funds the federal government borrows for deficit spending comes from these financial institutions. And since the American public pays federal income taxes to pay the interest on these debts, this results in yet another transfer of wealth from Americans to Corporate Banks who receive that interest.

But there is a solution.

WHAT? A massive transfer by average Americans of their money out of the banks and into credit unions.

Why? Because you will get better rates and fewer fees; your community banker will learn your name and provide you with more personal service; you will be keeping money in your local community which increases economic development and creates local jobs; you will make your voice heard, that you will stand strong and no longer be used as a pawn in a banking system that has run amok. You will be investing in Main Street - not Wall Street, where deposits are used for risky investments and gambling at the expense of the global economy. Beginning in 2008, Wall Street’s corporate banks demanded a bailout of $700 billion…and while the size of these Wall Street “Banksters” threatens our economic system, their size has actually increased since we bailed them out. According to FDIC data, the largest 5 banks held only 13% of US deposits in 1994; today they hold 38%. If the government won’t step in and apply Antitrust statutes to the Banking Industry and break them up, then we can do it ourselves and end ”Too Big To Fail” once and for all.

WHEN: “Remember, remember the 5th of November” goes a British child’s rhyme, in connection with Guy Fawkes Day (the character ‘channeled’ in the recent film, “V for Vendetta.”) Together we can ensure that these banking institutions will ALWAYS remember the 5th of November!! If the 99% remove their funds from the major banking institutions and support local non-profit credit unions instead on or by this date, we will send a clear message that Americans will not support rapacious and unethical corporate business practices any more.

HOW?

1) Research your local credit union options. Find one here: USA Credit Unions
2) Then, open an account with the one that best suits your needs.
3) Cancel all automatic withdrawals & deposits from your old bank
4) Transfer your funds to the new account, keeping some cash available until your new checks and debit card come through
5) Follow your bank's procedures to close your account before November 5.

Start NOW, because between your debit card, credit cards, direct deposit of paychecks, and automatic bill pay, the banking world has you practically captive.

NERVOUS? A wonderful post recently appeared on Reddit's Occupy Wall Street Forum, and I reprint it here in its unedited entirety:

I know most of you plan to move your bank accounts on or before November 5 and I just wanted to share the experience my wife and I went thorough today. I expect you'll likely have the same experience.

My wife had a BofA account from when she was in college. We went in to our local branch to close out her account.

First off, they are already feeling the squeeze of people leaving. The rep asked us if we were leaving because of the fees. My wife said she was for that reason. The rep then decided to try and educate us on the fees. Don't listen to them. My wife stood to her guns that she wanted to just join a local credit union to support our local economy, etc.. That ended the rep's attempt to keep my wife a customer.

My wife had her account closed and she pulled out all her money. Total time, about 20 minutes at most.

My experience was a bit different as I was with Chase, and had a lot more money in my account.

I walked into my local branch and spoke with the branch manager about closing my account. So she helped me.

Once we say in her cubicle, she asked me why I was leaving. I told her I wanted to move to a local bank and help with our community by investing in it by being a customer. I could tell this conversation was going to be difficult.

It literally took me 30 minutes to close my account. But the branch manager was freaked out because of me closing my account, she was worried her district manager would ask why I was closing my account. I then told her this, "look this isn't anything against you or any of your tellers in this branch. I'm just not comfortable having my life savings wrapped up with Chase. I've read plenty of news articles about shady practices Chase has been in. I'm worried that Chase invests money in other states with bad loans. I'm not comfortable letting a for profit company take everything I saved and make bad choices. I dont want to contribute to the cause. I want to take my money, put it in my local credit union, and help them give borrowing capability to my community."

She looked like she was about to cry. I didn't say it in a dick tone mind you. I just felt that she would have to answer to her boss why someone pulled their entire savings out in one day, she had to know the truth.
At any rate, my wife and I opened our new credit union accounts and we're happy. I'm in my 30s and I remember as a kid, banks used to have a personal feel to them and our credit union has that. Everyone smiling, chocolate candy dish at the front desk, it just feels good.
So the point of this rant is I wanted to just give everyone a heads up about these things:

• remember, the teller, manager, branch manager are not the enemy. They're part of 99% too and they need to earn a living. Please don't take your frustration of fees and other problems out on them. I almost did until I stopped myself.
• when asked about why you're leaving, be honest. Not happy with the $5 fee? Let them know. Not happy they foreclosed on homes of friends? Let them know. As we draw out our funds, the district managers will know something is up and ask their branch managers. If the branch managers have our feedback to give, it could really affect changes in the future.
• stick to your guns. If they dangle a free toaster in front of you, ignore it. It'll make things easier if you pick out a bank ahead of time. It took us ten minutes to find the one we liked. We compared the two banks and decided the CU was way better and was worth an hour or two of our time. If you have an idea of how much better a new bank is, it'll be easier to get rid of the old one.
• don't feel guilty for leaving your bank. I did for a bit, but kept reminding myself that our CU was going to make life easier.

If you feel compelled to tell the CEO of your old bank after you leave, do it. You might feel better. Just don't write any nasty things. Be honest and tell them you left because of this list of reasons. Sorry I you couldn't stay with them, but you found a better bank because they don't have these list of reasons after bank.
Here is a list of the big four banks I could think of. These are the email addresses of the CEOs:

Chase - jamie.dimon@jpmchase.com
BofA - brian.t.moynihan@bankofamerica.com
Wells Fargo - John.G.Stumpf@wellsfargo.com
Citibank - Vikram.Pandit@citi.com

Finally: When closing your bank account, be courteous on your way out the door and don't take it out on the bank staff.

For more information:
Move Your Money Project

Facebook Bank Transfer Day Page