I am simply going to paste a two page letter I wrote to the bank manager regarding what I percieved to be an unethical practice of inventing ways to excessively charge it's customers bank fees which can total large sume of money. I have had so many bad experiences with this bank that I can't understand why I have taken this long to leave. It's because of convenience only, as I live around the corner and my paycheck is direct deposited. It is my opinion that this bank crosses the line of ethical banking practices. Read my story below and you tell me.
Date: October 12th
I just got off the phone with you after calling to inquire how my account was charged three overdraft fees of $35.00 each for two ATM and one POS charge using my ATM card. Apparently a check I wrote in upstate New York on Monday October 8th (a holiday) arrived at Astoria the next day. I always deposit my wifes check every Wednesday and my check is electronically deposited every other Thursday, so I assumed the $410.00 check I wrote on a holiday would be OK. I was wrong, so I was charged $35.00 for that check since there was not enough in the account to cover it. I do not dispute that.
You told me the bank has a new policy of giving its customers who do not apply for a line of credit a courtesy of allowing them to write up to $300.00 worth of checks where the bank would pay in case of insufficient funds. You told me that is why the two ATM and one POS transaction went through since that courtesy allowed for them to go through. You then charged me $105.00 in overdraft fees directly related to your courtesy. When I told you I thought the fees for the three transactions were unfair since I normally would be denied to make those transactions and simply use another account instead saving myself $105.00 in overdraft fees (why would I use the ATM to withdraw $20.00 if I knew I was going to be charged $35.00 to do it?) you told me that you would remove the $300.00 courtesy from my account. When I asked you if that would result in removing my three $35.00 fees from my account you said No, Ill only remove two of them.
After I thought about that conversation for a while I realized what just happened. Your so called courtesy is nothing more than a back-door way for Astoria Federal to extract more money out of its customers without their knowledge or consent. Knowing that I have an electronic deposit every other Thursday for approximately $2,000.00 and a long history of making weekly deposits every Wednesday the bank is all but assured that the money will soon be in the account. As soon as my money is deposited a series of hefty bank fees automatically are withdrawn from my account. Wow, what a great courtesy you provide to your customers. Basically your bank is willing to front up to $300.00 to its loyal customers as you put it, knowing full well that almost immediately they will make a huge profit (in terms of percentage or interest) by way of bank fees. What is the % of $105.00 to $300.00? About 33% by doing the math in my head. Thats not APR either, thats in one day! Not too shabby for a bank, who usually deals in single digit interest rates on typical loans. If I knew how to do it Id love to figure out the APR on that transaction!
I had to make a decision on the phone as to what would have been a worse scenario, having the bank return the $410.00 check or losing $105.00 as a result of your courtesy. Why you were willing to only return two of the three fees is very puzzling as well. You told me the only reason that the bank paid all three transactions was as a result of the courtesy. If you were taking away the courtesy why not return all three fees. If not for your courtesy, I would have been prevented from making all three transactions, as we both agreed on the phone, hence no bank fees! The fact that I was never informed about this courtesy, or that I was charged an ATM fee for the two transactions also add a little salt to the injury.
My wife has been telling me for years to drop Astoria because of their ridiculous fees and poor customer service. I guess Im a victim of convenience, since we live around the corner. This latest creative invention of extracting more money out of your customers bank accounts is the last straw. I know what a true line of credit is. If I had that the bank would have paid the check and the other transactions without any fees to my account. Now thats a courtesy and fair deal for loyal customers. What your bank did to me in my opinion is nothing short of a scam. You lent me money for a few HOURS and charged me $105.00 for that loan. There really is no other way to explain it.
I represent 50,000 Long Island union workers and I wonder how many of them are subjected to these courtesies. I wonder how many of them are Astoria Federal customers? I intend t find out. I wonder how many other banks are trying to pull this off. I will be closing my account as soon as I can have my paycheck and a few other monthly charges redirected to a different bank. I am also going to forward this letter as well as a brief description of what just happened to several authorities including the N.Y. State Attorney General and Better Business Bureau. I usually dont get this agitated, and when Im wrong Im wrong. I feel like I had just taken part in a shell game, like the ones played on the streets in N.Y. City. Whats worse is that I am the unsuspected victim. I certainly do not feel like a loyal customer who has been with this bank from day one. Its a shame that large corporations like Astoria Federal deem it necessary to come up with loopholes and create unjust ways to overcharge their customers. Credit card companies are well known for that, but banks usually try to create a loyal customer relationship. The bank tellers in your branch are fantastic and I guess they are another reason why I have put up with this kind of nonsense for so long. As a whole, Astoria needs to take a look at their customer service policy and stop being a player in corporate deceit.
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