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AmTrust Financial Files for Bankruptcy - Future of AmTrust Bank?

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AmTrustDirect
The parent of AmTrust Bank, AmTrust Financial Corp, filed for bankruptcy yesterday. AmTrust Bank was not included in the bankruptcy. However, according to this WSJ article, the bank is "considered undercapitalized by regulators as a result of the housing crisis."

It was also reported in that WSJ article that the FDIC has been conducting an auction for AmTrust Bank. Banks on the verge of failure are often auctioned off in "secret" by the FDIC. When regulators close a bank, this allows the FDIC to immediately have the buyer take over the bank and assume the deposits. For the vast majority of these acquisitions this year, the buyers have assumed all deposits of the failed banks.

I first reported on AmTrust Bank when it started its internet bank AmTrustDirect back in the summer of 2006. For a couple of years it had offered very competitive savings account and CD rates. However, in the last year the rates haven't been too competitive. Last year the Office of Thrift Supervision (OTS) publicly released a Cease and Desist Order (pdf) for AmTrust Bank, and one of the restrictions included a deposit rate cap.
  Tags: AmTrustDirect

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Comments
15 comments.
Comment #1 by Anonymous posted on
Anonymous
Serves AMTRUST Right for double dipping on my funds and ****ing up ACH on me.

I had an account with them and I kept finding things like bogus fees to my account. They also had an ACH transaction go 2 times, messed up my address and never sent me a welcome letter.

Service was the most horrific of all the banks I have used.

They were a bunch of con artists looking to **** customers at every turn.

I think its a great thing they are going bankrupt. I wish it happened sooner.

I wrote to the OCC but never followed up on a complaint with them.

Bad banks deserve to go bust.

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Comment #2 by Anonymous posted on
Anonymous
And to top it off everytime I dealt with a representative they would be like the bank has been around 70 years or something like that.

Not ANYMORE!

GOOD RIDDANCE TO THE THIEVES AT AMTRUST!

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Comment #3 by Anonymous posted on
Anonymous
I actually found the high rate on here for Amtrust and I should have done due dilligence before I put my funds in.

AmTrust was horrible.

1
Comment #4 by Anonymous posted on
Anonymous
From the website: Since 1889

Way to blow the finances of a bank after over 100 years. I thought it was 70, I didn't recall the figure.

****ty banks who treat customers like crap deserve to die. No exception.

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Comment #5 by Anonymous posted on
Anonymous
This bank is based in Ohio which has seen its share of economic problems. The bank did have one of the highest rate at one time. But the regulators apparently clamped down on their junk bond rate offerings. People are willing to give money to these online banks sight unseen, so you wonder what the underlying bank is really like.

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Comment #6 by Anonymous posted on
Anonymous
You don't have to physically see a bank since they are FDIC regulated.

But banking is supposed to be about trust and honesty and that is really hard to find these days.

AmTrustDirect was the worst Bank Ive experienced sans Washington Mutual which was also horrific.

HSBC was horrific as well in the olden days but has since gotten much better. They actually lost a cash deposit at the ATM Machine which was double marked and I had the receipt and they credited me back the funds.

Fortunately HSBC added cash accepters to the local ATM here and you can accept or deny if the dollar amount doesn't add up right and get the money back so that issue will never happen again.

Capital One has been treating me extremely well so far as has Amex Personal Savings. I had an account with igobanking / Flushing savings bank but they lowered the rate significantly and made a comeback with a bill pay promo after I took out my last funds.

I just found out that I got another $25 of rewards because of Capital One lowering rewards requirements on its checking accounts so I have $1 in the account now and will get a $25 check soon. They said Jan 1st 2009, but I see the system is allowing me to take it out now.

I made $225 from Capital One because of a direct deposit and the opening of the account with them. I was expecting Capital One to be sharks but on the contrary they have been an exceptional bank and they even have a higher rate than Amex Personal Savings with bonus.

No banks I will use will ever play the games like AmTrust Direct did.

Amex should be around for a long time and so should Capital One and even Flushing Savings bank.

Customer service on Flushing Savings Bank/igobanking has not been too good and they did a quick teaser and dropped rates quickly since then but no double dipping or manipulation of funds. But Im going to close that one out and stick with Capital One, HSBC and Amex. Also GE Interest Plus (GE is an awesome company as is GE Capital) due to a bonus I took and I keep a little in there but not too much since its not FDIC insured even though rates are higher.

Banks akin to AmTrustDirect are not welcome.

1
Comment #7 by Anonymous posted on
Anonymous
It's strange but people have very different experiences with banks. I hate Capital One with a passion because of their horrible, horrible Customer Service and their draconian collection tactic, but I've had no problems with WAMU. I love WAMU in fact. I'm so sadden to see WAMU eaten up by Chase. It would have been nicer to see BofA or Citi die, but unfortunately WAMU died. RIP WAMU.

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Comment #8 by Anonymous posted on
Anonymous
I have some 2k total leftover in amtrust direct.
Should I transfer it out ASAP?
I have multiple accounts there and amtrust doesn't have real time transfer between accounts - it takes a day for internal transfer :-(

Any fee of closing account there I should worry about and how to avoid it?
tnx

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Comment #9 by Anonymous posted on
Anonymous
Great news indeed! AmTrust is a horrible bank and belongs to bankruptcy courts.

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Comment #10 by Anonymous posted on
Anonymous
Capital One is terrific to deal with.

Gave me loads of bonuses and has treated me right every step of the way.

When I opened the account my account didn't go live on the same day online so I called in to find out I had to try next day.

The account opened successfully and I got a $200 new checking account reward on the account which they fully honored and paid out earlier than expected and I got a $25 reward because even though I never used the checking account which has no min requirement, I made direct deposit for the promo and the like so I wound up with 5,000 bonus points which can now be used for $25.00.

So thats $225.00 just for doing business with them.

As far as collection tactics, what collection tactics if you pay bills on time and in full. I have one Capital One CC because Capital One has no foreign currency conversion fee.

Capital One is an excellent institution. I have no problems with them and will continue to use them for a long time.

WAMU when it first opened was an excellent institution when Occasio came out but then the bank took a turn for the worst.

Capital One on the other hand since I have used them has been excellent.

1
Comment #11 by Anonymous posted on
Anonymous
Capital One is terrific to deal with.

Gave me loads of bonuses and has treated me right every step of the way.

When I opened the account my account didn't go live on the same day online so I called in to find out I had to try next day.

The account opened successfully and I got a $200 new checking account reward on the account which they fully honored and paid out earlier than expected and I got a $25 reward because even though I never used the checking account which has no min requirement, I made direct deposit for the promo and the like so I wound up with 5,000 bonus points which can now be used for $25.00.

So thats $225.00 just for doing business with them.

As far as collection tactics, what collection tactics if you pay bills on time and in full. I have one Capital One CC because Capital One has no foreign currency conversion fee.

Capital One is an excellent institution. I have no problems with them and will continue to use them for a long time.

WAMU when it first opened was an excellent institution when Occasio came out but then the bank took a turn for the worst.

Capital One on the other hand since I have used them has been excellent.

1
Comment #12 by Anonymous posted on
Anonymous
That didn't take long - Amtrust has now been closed by FDIC.

1
Comment #13 by Anonymous posted on
Anonymous
Wonder if I should withdraw my .37 cents? lol

1
Comment #14 by Anonymous posted on
Anonymous
But, AmTrust Bank (amtrustdirect) is still offering a competitive rate for BOTH their e-Savings account (balance tier $1.00-$99.999k) and Premium e-moneymarket account (balance tier $10k-up) at 0.995%,1.00% apy, which is more than some others. In addition, a 12-month CD at 1.70%apy is still not bad and comparable to ING with $1,000 minimum. Now that they're NYCB, it's still decent.
LOL @7:47p, if it's an old account where you get monthly statements mailed, then that's funnier. They pay 0.337 in US Postage (bulk discounted 1st class pre-sorted mail), +expense for paper of statement and envelope!

1
Comment #15 by Anonymous posted on
Anonymous
To Anonymous who posted on 1:55 PM, December 05, 2009

You think that's funny? I have an account that I closed ($0 balance) and I still get mailed statements from the bank (M&T). When they took over Provident Bank's accounts a few months ago, I closed my account just before the official takeover. Well, apparently their computer system still "moved" my account over to the new bank even though I took out the entire balance before the official transfer date and they still mail me statements. Doesn't the computer system detect that my balance is zero and stop it? It probably is one of those kind of software where it presumes that you have an active account and expect you to add some money back into it later.

1