PREDATORY BANKING PRACTICES IN UPSTATE NEW YORK

I'VE BEEN BANKING IN THE CAPITOL DISTRICT FOR MOST OF MY LIFE.  FROM MY
FIRST EXPOSURE TO THE "ADVANTAGES" OF HAVING A SAVINGS ACCOUNT IN
GRAMMAR SCHOOL, I HAVE BEEN BESET BY A DRAMATICALLY CHANGING INDUSTRY.

DURING THE EARLY 1960'S, THE "GLENS FALLS NATIONAL BANK" SENT THEIR
REPRESENTATIVES TO LOCAL ELEMENTARY SCHOOLS TO ENTICE YOUNG CHILDREN 
TO SAVE THEIR MONEY IN SAVINGS ACCOUNTS.  THEY EXPLAINED THE USAGE OF
PASS BOOKS, SUPERVISED INITIAL DEPOSITS, AND ENTHUSIASTICALLY LURED 
YOUNG CHILDREN INTO THE VENOMOUS PRACTICE OF CAPITALISM.

I REMEMBER WELL MY FIRST ACCOUNT.  I WOULD DEPOSIT VIRTUALLY EVERY 
PENNY INTO THE ACCOUNT.  AS A CHILD MY INCOME WAS EXTREMELY LIMITED.  
IT TOOK NEARLY A YEAR FOR ME TO AMASS A MEASLY $20.  

DURING THIS TIME PERIOD, THE LOCAL BANK SEEMED ECSTATIC TO GARNER THE
MEAGER FUNDS OF PRE-TEENS.  THERE WAS NEVER A SERVICE CHARGE, OR FEE 
OF ANY KIND.  AS CHILDREN WE WERE HAPPY TO SEE OUR MONEY GROW.

THROUGHOUT THE FOLLOWING DECADES, I EVENTUALLY STARTED A CHECKING 
ACCOUNT AND BEGAN THE BUSINESS OF ADULTHOOD.

IMAGINE MY SURPRISE WHEN IN 1979, I ENDEAVORED TO START A SAVINGS 
ACCOUNT FOR MY NEW DAUGHTER, AND WAS TOLD I WOULD HAVE TO MAINTAIN A 
$50 DEPOSIT ON ACCOUNT.  I WAS FLABBERGASTED.  WHAT HAPPENED TO THIS
INDUSTRY THAT HAD PRACTICALLY BEGGED ME AS A CHILD, TO OPEN A SAVINGS
ACCOUNT?  FURTHERMORE, THE BANK INFORMED ME THERE WOULD BE A SERVICE
CHARGE, OR MAINTENANCE FEE ON ACCOUNTS BELOW $200!

INITIALLY, I WAS SUSPECT OF THAT PARTICULAR BANK, UNTIL I DISCOVERED
ALL BANKS WERE DOING THE SAME.

I QUESTIONED THE WISDOM OF THIS BANKING INDUSTRY'S DEVIOUS, HEARTLESS,
AND GREEDY PRACTICE.  THEY SEEMED TO HAVE FORGOTTEN THEIR PRIMARY
PURPOSE.  

BANKS ACCRUE MONIES FROM INDIVIDUALS ON THE PRETENSE OF SAFEGUARDING 
THE DEPOSITOR'S WEALTH.  THE DEPOSITOR'S ONUS, IS TO ALLOW THESE 
BANKS TO USE THESE MONIES, FOR INVESTMENT AND LOANS.  BANKS CHARGE 
HIGH FEES OF THOSE INDIVIDUALS WHO ARE ACQUIRING LOANS.  THEY ALSO 
RECEIVE SIGNIFICANT PREMIUMS FROM THEIR INVESTMENTS.  THESE PROFITS
ARE USED FOR OPERATING EXPENSES, SALARIES, AND FINALLY AS INTEREST 
PASSED ON TO THEIR DEPOSITORS.

IN OTHER WORDS, BANKS USE YOUR MONEY TO MAKE MONEY.  REMEMBER, I 
REPEAT..."YOUR MONEY"!

EVEN CHECKING ACCOUNTS ACRUE INTEREST, THOUGH NOT FOR THE DEPOSITOR.

THE BANKING INDUSTRY HAS SIGNIFICANT MONIES AND ACTUALLY CAN COMPUTE
THEIR INTEREST AND PROFITS ON A DAILY BASIS, AND YOU CAN BE DAMN 
SURE THAT THEY DO.

PUTTING ASIDE THE PRACTICE OF SAVINGS ACCOUNT MAINTENANCE FEES, I 
WAS NEXT ASSAILED WITH THE LACK OF "FAIR PLAY" IN CHECKING ACCOUNTS.

MY FIRST ASTONISHMENT CAME WHEN A CHECK I HAD WRITTEN TO MY INSURANCE
AGENT (ANOTHER DUBIOUS BUSINESS), CAME BACK "NON SUFFICIENT FUNDS".
THE CHECK HAD BEEN "POST-DATED", BECAUSE HE CLAIMED HE WOULD BE OUT
OF TOWN AT THE END OF THE MONTH, WHEN THE PAYMENT WAS DUE.  

HE ASSURED ME HE WOULD NOT DEPOSIT THE CHECK UNTIL THE DAY I HAD 
DATED IT.  HMMMPH!  NOT ONLY DID HE DEPOSIT THE CHECK TOO EARLY, I 
ACTUALLY RECEIVED THE NOTIFICATION A WEEK BEFORE THE CHECK WAS 
DATED FOR!

I CALLED THE BANK, "FLEET BANK" IN SARATOGA SPRINGS, NY, THINKING 
I HAD A LEGITIMATE GRIPE.  THEY TOLD ME THAT THEY ROUTINELY IGNORE 
THE DATES ON CHECKS, AND THAT WRITING A POST-DATED CHECK WAS 
ILLEGAL.  I WAS STUCK FOR A $20 OVERDRAFT CHARGE.  FURTHERMORE, I 
HAD A DRAMATICALLY ACTIVE CHECKING ACCOUNT.  I MADE DEPOSITS DAILY, 
AND COINCIDENTLY HAD DEPOSITED PLENTY OF MONEY TO COVER THE CHECK 
AND OTHERS, THE SAME DAY THAT THEY HAD BOUNCED THE ITEM.

I WONDERED AT THE IDEA OF "POST DATING" BEING ILLEGAL.  I ARGUED
IF I HAD TO PAY A BILL IN SAY, CALIFORNIA BY MAIL, THEN I WOULD
HAVE TO POST DATE THE CHECK, IN ORDER TO PAY THE BILL ON TIME.  

THEY ARGUED THAT YOU SHOULD DATE THE CHECK FOR THE DAY OF MAILING
AND BE SURE YOU HAVE THE FUNDS TO COVER IT.  SO IN OTHER WORDS,
MY BILLS MUST BE PAID AT LEAST THREE DAYS BEFORE THEY ARE DUE.

WELL, THEY SAID THE CHECK HAD BEEN POSTED IN THE MORNING AND 
BECAUSE MY DEPOSIT WASN'T MADE UNTIL AFTER NOON, THEY HAD THE RIGHT 
TO BILL ME.

I CHANGED INSURANCE AGENTS, COMPLAINED TO HIS BOSS, AND EVENTUALLY
CHANGED BANKS.  BUT NOT BEFORE THEY STUNG ME AGAIN.

THE DAY BEFORE THANKSGIVING IN 1984, I MADE A NIGHT DEPOSIT FOR 
THE RESTAURANT I MANAGED, AND ALSO DEPOSITED MY PERSONAL PAY IN 
CASH INTO MY ATM ACCOUNT, AS HAD BEEN MY PRACTICE FOR OVER A YEAR.

THANKSGIVING, OF COURSE WAS A HOLIDAY, AND I REALIZED THAT CASH
DEPOSITS ARE NOT CREDITED UNTIL THE FOLLOWING BUSINESS DAY, WHICH
WAS FRIDAY.  THE BANK WAS ALSO OPEN ON SATURDAYS.

MY GUARD WAS DOWN AND I WROTE CHECKS FOR EVERYTHING.  OVER THAT 
WEEKEND, I WROTE SOME TWENTY CHECKS FOR VARIOUS SUNDRY ITEMS, 
TOTALING AROUND $200.  THE DEPOSIT I HAD MADE ON THE PREVIOUS 
WEDNESDAY RAISED MY ACCOUNT BALANCE TO ABOUT $500.  ON TUESDAY, I
RECEIVED NOTICE FROM THE BANK THAT I OWED THEM NEARLY $400 IN
BAD CHECK FEES!

MY ORIGINAL ACCOUNT BALANCE WAS ABOUT $75.  I WAS LIVID!  THEY 
HAD BOUNCED EVERY CHECK I HAD WRITTEN.

I WAS NEARLY "POSTAL"!  I WENT TO THE BANK AND STORMED INTO A
CSR'S OFFICE AND RANTED AND RAVED.

THEIR EXPLANATION WAS AS FOLLOWS.

"OUR TELLER RESPONSIBLE FOR CALCULATING THE ATM DEPOSITS QUIT, SO
WE HAVEN'T BEEN ABLE TO CREDIT THOSE ACCOUNTS YET."  (HERE IT 
WAS TUESDAY, AND MY DEPOSIT OF NEARLY A WEEK AGO, STILL HADN'T 
SHOWN UP.)

"BUT MISTER BROWN, YOU SHOULDN'T WRITE CHECKS UNLESS THE MONEY IS
IN YOUR ACCOUNT."  I ARGUED I HAD MADE THE DEPOSIT WITH AMPLE 
TIME TO COVER SAID DOCUMENTS.  WHY HAD THEY BOUNCED ALL OF MY
CHECKS WHEN THEIR WAS A BALANCE OF $75 AVAILBLE, BEFORE I EVEN 
MADE THE ATM DEPOSIT?  

"MISTER BROWN, THE FIRST CHECK PRESENTED TO US ON MONDAY, WAS FOR
$77.  THIS MADE YOU OVERDRAWN AND WE THEN HAD TO ASSESS AN 
OVERDRAFT FEE OF $20."

WHY DIDN'T YOU ALLOW A SERIES OF THE SMALLER CHECKS TO CLEAR, IN
EFFECT LESSENING MY OVERDRAFT FEES?  THEY WERE ALSO PRESENTED ON 
MONDAY, WERE THEY NOT?

"MISTER BROWN CONTROL YOUR TEMPER.  THAT'S JUST THE WAY WE DO 
BUSINESS."

BEFORE I WAS DONE, WITH THE BANK FEES INCURRED AND THE CHARGES TO
THE BUSINESSES I HAD WRITTEN CHECKS TO, I OWED NEARLY $600.  

I NEXT CALLED THE ATTORNEY GENERAL'S OFFICE.  THEY SENT ME TO AN 
AGENCY OF THE FDIC.  THEY REVIEWED MY CASE, AND SIX MONTHS LATER,
FLEET BANK FINALLY RETURNED ALL OF MY MONIES, INCLUDING REFUNDS 
AND LETTERS OF APOLOGY TO ALL THE MERCHANTS I HAD DONE BUSINESS 
WITH. 

MEANWHILE, MY CREDIT WAS RUINED.  I WAS FORCED TO BORROW HUNDREDS
OF DOLLARS TO OFFSET MY INITIAL LOSSES.  I LOST THE RESPECT AND 
THE RIGHT TO USE CHECKS AT NEARLY TWENTY LOCAL CONCERNS.  AND
FINALLY, I STARTED TO BE COMPLETELY SUSPICIOUS OF EACH AND EVERY
BANK, CREDIT UNION, AND LENDING INSTITUTION IN THIS GREEDY LAND
OF OURS.

OBVIOUSLY, I CHANGED BANKS.  WITH GREAT TREPIDATION, I FINALLY
WENT WITH A LOCALLY BASED BANK CALLED "THE ADIRONDACK TRUST 
COMPANY".  I HAD FRIENDS WHO SWORE BY THEM (NOT AT THEM!), AND 
MY OTHER BOSS (I'VE ALWAYS WORKED TWO JOBS), HAD BEEN HAPPY 
WITH THEM.

I OPENED THE STANDARD CHECKING ACCOUNT, SIGNED UP FOR THE ATM,
AND EVEN HAD A DIRECT DEPOSIT ESTABLISHED.  

THERE WAS NO CHECKING FEE, CHECKS WERE REASONABLE, AND THE 
SERVICE WAS FRIENDLY AND EFFECIENT.  THEY SEEMED TO BE THE ANSWER 
TO MY BANKING NEEDS.    

"THE ADIRONDACK TRUST COMPANY" WAS DECLARED THE 26TH MOST 
RELIABLE BANK IN THE USA, BY THE WALL STREET JOURNAL.  I WAS 
IMPRESSED.  THIS HOMETOWN BANK FROM A CITY OF BARELY 27,000 HAD 
MADE NATIONAL ATTENTION.  AND FOR THE FIRST TEN YEARS OF MY 
ASSOCIATION WITH THEM, I WAS TREMENDOUSLY SATISFIED.

THEN THE PROVERBIAL MANURE HIT THE FAN.  SUDDENLY I WAS FORCED 
TO PAY FOR MY CHECKING.  THEN THEY BEGAN MAKING SMALL, SUBTLE 
MISTAKES IN MY STATEMENT.  WHEREAS THEY HAD ORIGINALLY ALLOWED ME 
A TWENTY DOLLAR OVERDRAFT, THEY NOW REQUIRED A SAVINGS ACCOUNT, 
IN ORDER TO AVAIL MYSELF OF THE PRIVILEGE.  (IF I COULD AFFORD 
TO MAINTAIN A SECOND ACCOUNT, I WOULDN'T NEED AN OVERDRAFT!)

NOW RETIRED AND 100% DISABLED, MONEY IS TIGHT.  MY CHECKS WERE 
DEPOSITED BY THE FEDERAL GOVERNMENT EVERY 1ST & 3RD OF THE MONTH.
ONE WOULD THINK THIS WOULD AVAIL ME SOME SECURITY, BUT NO.  I
ACTUALLY ENCOUNTERED MORE PROBLEMS INITIALLY WITH DIRECT DEPOSIT
THAN I HAD BEFORE WITH TRADITIONAL MODES OF BANKING.

"OH, MISTER BROWN OUR COMPUTERS ARE DOWN." OR "MISTER BROWN, WE 
CAN'T SEEM TO FIND YOUR CHECK!  TEE, HEE!"

MY NEW WIFE, ADDED TO MY CHECKING ACCOUNT OF TEN YEARS RUNNING,
NOW DECIDED TO LEAVE ME.  I GO TO THE BANK MANAGER TO HAVE HER 
REMOVED FROM THE ACCOUNT,  AND HE TELLS ME I CAN'T DO THAT.  
(SHE, BY THE WAY, WAS PERFECTLY WILLING TO SIGN OFF THE 
ACCOUNT.)

THE MANAGER INFORMS ME THAT I MUST OPEN A NEW ACCOUNT EXCLUSIVE 
TO ME.  I SAID THAT'S ALRIGHT FOR YOU GUYS, BUT I JUST WENT 
THROUGH TWO MONTHS OF HELL, TRYING TO SET UP MY GOVERNMENT CHECK
DIRECT DEPOSIT, AND FRANKLY, I CAN'T AFFORD TO JUGGLE THESE 
FUNDS AGAIN.

I KEPT THINGS AS THEY WERE WHILE I MOVED TO SUPERVISED HOUSING
AND DEALT WITH THE INHERENT PROBLEMS THERE!  LUCKILY, MY EX-WIFE
NEVER USED THE ACCOUNT AGAIN, AND I WAS AT LEAST SAFE FROM HER 
PREDATORY NATURE.

I RELOCATED TO EAST BUM****, AND IMMEDIATELY, I BEGAN TO HAVE 
EVEN MORE PROBLEMS WITH THE "26TH MOST RELIABLE BANK IN AMERICA".
I NOW LIVE 15 MILES FROM THE NEAREST BRANCH OFFICE, AND WITHOUT 
A CAR, OR USEABLE APPENDAGES, I CANNOT GET TO THE BANK.

I TRY MAKING DEPOSITS BY MAIL.  TWO, MAYBE THREE, MAYBE FOUR DAYS
LATER, MY POSTS ARRIVE.  BY NOW ANY CHECK I HAVE WRITTEN IS 
TURNED BACK, OR DELAYED, OR LOST.  

THE COLLECTION AGENCY'S ARE AT MY DOOR.  THE IRS TELLS ME I OWE 
THEM TAXES.  (ON SOCIAL SECURITY!?!)  THE SSI INSISTS THEY 
OVER-PAYED ME.  (HOW DO I KNOW?  I DON'T COMPUTE THE FIGURES!)

I'M NOW BEING CHARGED FOR EVERY TRANSACTION MADE FROM MY ACCOUNT.

THAT'S RIGHT!  INCLUDING CASH DEPOSITS!  THEY ARE BILLING ME FOR
THE USE OF MY OWN MONEY!

I FOUND A NEW BANK A SHORT WALK FROM MY APARTMENT.  I CAN HANDLE
THIS.  IT SEEMED CONVENIENT.  OPTIMISM!!!!

YEAH, RIGHT.  ENTER THE "EVERGREEN BANK".  I OPEN A CHECKING 
ACCOUNT AND DEPOSIT $50 WHILE I WAIT FOR MY DIRECT DEPOSIT TO  
VALIDIDATE.  AGAIN DELAYS.  I AM TOLD I HAVE FREE CHECKING AND 
FREE CHECKS.  THEY GIVE ME A SET OF 10 STARTER CHECKS.  MY FIRST
"REAL" CHECKS WILL ARRIVE IN ABOUT TWO WEEKS.  THEY GIVE ME A 
DEBIT CARD.

A WEEK GOES BY AND I HAVE USED TWO STARTER CHECKS TO PAY FOR FOOD
AND MEDICATION.  TOGETHER THE AMOUNTS TOTAL $39.  I RECEIVE A 
NOTICE FROM THE BANK, TELLING ME I HAVE A BOUNCED CHECK, AND THE
FEE WILL BE $25 + $5 A DAY UNTIL I MAKE IT GOOD!  

ONCE AGAIN, WAYNE GOES "POSTAL".  (THE IRONY IS THE BANK IS 
LOCATED AT THE VILLAGE POST OFFICE!)  ONCE AGAIN, I STORM INTO
A BANK CSR'S OFFICE READY TO CHOP THEIR GREEDY FINGERS OFF!  

THEIR EXPLANATION?  "OH, BUT MISTER BROWN WE TOLD YOU WE CHARGE
FOR CHECKING.  YOUR ACCOUNT WAS CHARGED $12.98 FOR YOUR CHECKS.
AND  THAT MADE YOUR ACCOUNT DELINQUENT BY $1.98.  WE THEN 
ASSESSED YOU $25 FOR INSUFFICIENT FUNDS."

I LOOKED AT HER DUMBFOUNDED.  "I HAVEN'T RECEIVED THOSE CHECKS 
YET."

"BUT MISTER BROWN, WE GAVE YOU THOSE CHECKS WHEN YOU OPENED 
YOUR ACCOUNT."

"YOU MEAN THE STARTER CHECKS!?!"

"WHY CERTAINLY!"

"YOU'RE CHARGING ME $13 FOR 10 STARTER CHECKS WHICH ARE 
VIRTUALLY UNCASHABLE, AFTER TELLING ME REPEATEDLY THAT THERE
WAS NO CHARGE FOR CHECKING, OR MY CHECKS, IN THE FIRST PLACE?"

I FINALLY GOT THEM TO REVERSE THE CHECKING AND OVERDRAFT FEES.
I'M STUCK WITH THEM.  THERE'S NO OTHER GAME IN TOWN, THAT I CAN
GET TO, ANYWAY.  SO FOR THE REST OF MY HOPEFULLY SHORT LIFE, I
AM PREY TO YET ANOTHER ROBBER BARON, THAT SITS ON MAIN STREET, 
SHARING OPERATING EXPENSES WITH THE LOCAL P.O.

INCIDENTALLY, WHEN DID IT BECOME BUSINESS AS USUAL, TO NOT 
RETURN THOSE CANCELED CHECKS WHICH I PAY SO DEARLY FOR?  HOW
AM I TO PROVE MY TRANSACTIONS?  A BILLING STATEMENT IS NOT A 
LEGAL DOCUMENT.  I CAN'T USE A TYPEWRITTEN FORM LETTER TO
ARGUE MY CASE BEFORE A MAGISTRATE!  WHAT'S GOING ON HERE?

ADDENDUM:

I HAVE TRIED INTERNET BANKING AS WELL.  MY FIRST EXPERIENCE WAS
MUCH LIKE THOSE WITH CONVENTIONAL BANKS.  I SIGNED UP FOR AN 
ACCOUNT WITH A COMPANY CALLED "X.COM".  THEY LURED ME IN WITH 
THE PROMISE OF $25, NO STRINGS ATTACHED.  THEY SPECIFICALLY 
TOLD ME I HAD OVERDRAFT PROTECTION.  I COMPLIED WITH ALL OF
THEIR CRITERIA, AND THOUGHT I WAS IN HEAVEN.  

MANAGING MY MONEY FROM MY PC APPEALED TO ME.  I AM MORE, OR 
LESS, HOUSE BOUND, AND I SPEND 8-10 HOURS A DAY AT MY STATION.

EVERYTHING SEEMED DUCKY, UNTIL I RECEIVED A LETTER FROM THEM
INDICATING THAT I OWED THEM $50, AGAIN IN OVER DRAFT FEES!  
AFTER TWO DAYS OF CALLING THEIR CUSTOMER SERVICE DEPARTMENT,
AND BEING UNABLE TO CONNECT WITH THEM, I WAS LIVID.  THEY HAD
ASSIGNED ME TO A NATIONAL CHECK REGISTRY, WHICH PREVENTED ME 
FROM WRITING CHECKS TO ANYONE WITH ACCESS TO ONLINE BANKING.

I HAD ONLY MADE THREE TRANSACTIONS WITH THEM.  THE FIRST 
(BEYOND MY INITIAL DEPOSIT OF $25, THAT IS), WAS A DEBIT 
TRANSFER OF $32.  THE NEXT WAS A DEPOSIT OF $80.  THE FINAL 
TRANSACTION WAS A CHECK FOR $19.95.  

APPARENTLY, MY SECOND CHECK CLEARED BEFORE THE DEPOSIT, 
LEAVING ME A $1.95 OVER-DRAFT.  I WASN'T WORRIED THOUGH, 
THEY HAD ASSURED ME I HAD OVER-DRAFT PROTECTION.  I REASONED 
THAT NO MATTER HOW MUCH PROTECTION I HAD, IT CERTAINLY WOULD 
COVER $1.95!  BY THE WAY, THE $80 DEPOSIT SHOWED UP THE VERY 
NEXT DAY.      

NO WAY!  "NO, NO MISTER BROWN, WE DIDN'T SAY YOU WERE 
AUTOMATICALLY COVERED FOR OVER-DRAFT!  WE SAID IT WAS AVAILABLE
TO SOME OF OUR SUBSCRIBERS!"

FORTUNATELY FOR ME, I HAD PRINTED EVERY NEGOTIATION I HAD 
WITH THEM.  AND SURE ENOUGH IN THE ORIGINAL CONTRACT, A CLAUSE
STATED, "OVER-DRAFT PROTECTION IS AVAILABLE TO ALL CUSTOMERS."
THE IMPLICATION WAS THERE.  THEY SHOULD HAVE ADDED TWO MAGIC 
WORDS TO ALTER THE CONDITION.  "...WHO QUALIFY."

I FINALLY GOT THEM TO REVERSE THE CHARGES AFTER WRITING A
SCATHING REVIEW OF MY EXPERIENCE WITH THE BANK AND IT'S 
DUBIOUS PRACTICES.  TO THIS DAY THAT REVIEW CATCHES THE MOST 
"HITS", WITHIN MY PORTFOLIO AT "EPINIONS".

A FEW MONTHS LATER, I RECIEVED A LETTER FROM THEM, INDICATING
THEY WERE GOING OUT OF THE CHECKING ACCOUNT BUSINESS, AND I
WAS INSTRUCTED TO REMOVE ANY REMAINING FUNDS.

HOWEVER, SINCE THIS INCIDENT, MY ON-LINE EXPERIENCES HAVE 
BEEN MORE "IN-LINE", AND I WILL UPDATE THOSE AT A LATER TIME.