American banks- what is wrong? Bank involved in scam of customers
I have written earlier, in What’s wrong with American banks about the lack of efficiency, the continued use of checks and their outrageous fees. However, it seems I was much too kind. Some American banks seem to do much worse than even that. Now, according to New York Times,
Wachovia has agreed to pay as much as $144 million to end an investigation that accuses the bank of allowing telemarketers to use its accounts to steal millions of dollars.
So instead of trying to build customer confidence, sharpening up the service, improving efficiency, and building business by producing customer satisfaction, a huge American bank gets involved in a rather petty scam against its own customers for a few million dollars in profit! Elderly customers, at that! Wild! What a great way to destroy a brand name! What a great way to destroy customer confidence – just when they need it the most!
The bank’s actions were “part of a pattern of misconduct” that resulted in Wachovia’s collecting millions of dollars in fees, regulators wrote.
Wachovia has agreed to pay a $10 million fine, contribute $8.9 million to consumer education programs and make restitution to victims that could top $125 million. In a statement, the bank said this “situation was unacceptable and we regret it happened.”
How silly is it possible to behave? When is the American banking industry going to stop treating its customers as uneducated, stupid fools, and instead try to focus on building trust, satisfaction and loyalty by means of excellent service? Or building highly efficient transaction systems using the best available technology and software? In a country that, technologically speaking, is ahead of the rest of the world, but that nevertheless, from an implementation point of view – especially as far as the banking sector is concerned – is 10 years behind Scandinavian and German banks in the use of modern technology? They should improve transaction efficiency and lower costs – not run scams!
And if the high paid executives of the huge American bank are unwilling to or unable to improve their banks and customer service, then why hasn’t there been any regulatory action to just force them to increase efficiency and performance? Do American regulators not know how bad American banking is? Do they not go abroad and study how it’s done elsewhere? Do they think America is still in the forefront – and don’t want to be confused with facts?
The odd piece of information, strange facts, comments on news, ranting and rambling. Kicks and licks. Fun, irony and sarcasm, often, though, with some serious intention.
I live and have lived in Europe and the US. I like both.
I’m nekkid, so no need to undress me. Don't bite me. I much prefer stroking.
April 27th, 2008 at 4:33 pm
They’ll stop treating Americans as uneducated, stupid fools when they stop being uneducated, stupid fools.
April 27th, 2008 at 5:14 pm
“They’ll stop treating Americans as uneducated, stupid fools when they stop being uneducated, stupid fools.”
Unlikely. The biggest of the big American banks don’t give a damn about consumers, because the real money is in investment and business banking. I walked away from two big banks years ago, and started doing business with a small, local credit union. I’ve never regretted in. In fact, in light of ongoing news like the Wachovia admission, I’ve had reason to be quite happy about it.
That said, there are still several small banks in my area that treat their customers perfectly well. The dividing line seems to be interstate banking. Once you grow to “regional” status, customer service goes down the toilet.
April 27th, 2008 at 5:58 pm
Unbridled greed has become a core tenant of American capitalism, and any actions to check that greed – by government, business, regulatory agency, or individual – are considered unAmerican. Any demonstration of such greed is a sign that you are a good capitalist citizen and participatory in the system. As such, greed goes unpunished because it is encouraged.
April 27th, 2008 at 7:42 pm
Would you care to tell us WHAT the bank was doing exactly? Or do we have to go search for it?
April 27th, 2008 at 9:24 pm
Tom: Just click the link to the NYT
April 28th, 2008 at 9:29 am
the banks make most of their money laundering drug money. that’s why drugs will never be legalized…too much banking profit.
April 28th, 2008 at 11:30 pm
Simply…disgusting,dis-heartening, and shameful.
As an American consumer (somewhat well-educated, and not entirely stupid or foolish), this news comes as a shock, but not a huge surprise. The kind of activity I assume (hope, at least) our banks are not enabling or engaged in, but in my heart-of-hearts, I imagine goes on far more often than we will ever know.
Perhaps Wacovia getting caught with their pants down will have some small effect on the behavior of their peer institutions. Or perhaps not, who knows.
“Do American regulators not know how bad American banking is?” Well, after the implosion and continued un-raveling of the mortgage banking business, one would hope they are beginning to get the picture. What they will do to clean-up/reform, and when, will be truly fascinating to observe. Very sadly, it feels sort of like watching a train wreck, in slow motion. While many of the bank honchos have kept their positions, big salaries, and clubby lifestyles, the victims of their greedy and irresponsible practices have had their lives and financial futures hijacked.