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Service Change

Sunday, December 1, 2013 - 11:32 AMBanc of California - Details
I logged into my account at Banc of California (formerly PacTrust Bank) and noticed I was being charged a $35 service fee in my One Account. From the website-

https://www.bancofcal.com/banking/the-one-account.php

*Minimum balance to open is $25,000. Minimum balance to earn the stated Annual Percentage Yield (APY) is $250,000. Deposited funds must be new to Banc of California, N.A. and may not be transferred from existing Banc of California, N.A. accounts. Additional rate tiers: $25,000 to $99,999.99 - 0.50% APY, $100,000 to $249,999.99 - 1.00%. APYs effective as of 10/7/13, are guaranteed through 12/31/13 and are subject to change daily thereafter. Fees may reduce earnings.

I just happen to have a balance exceeding this.

Also I noticed I was only paid interest for 29-days instead of 30-days for the month of November.

Has anyone else noticed this?
3
smcsmc19 posts since
Dec 19, 2011
Rep Points: 39
1. Sunday, December 1, 2013 - 5:11 PM
Actually, you don't have enough info for we readers to be certain what the situation is. What you posted clearly says fees might apply.

I gather you are saying that you are locked into a CD and now, before it matures, there is some new fee being applied to it that was not in place before you locked into the CD, and even a high balance on the CD does not avoid that fee? Or, was there always the possibility of that fee, and something in your situation at the bank has changed, maybe a lower amount in another account or something that you didn't know to mention? 

If they are out of nowhere hitting you with a monthly fee that was establish after you already were locked into the CD, that really isn't a lot different than changing an early withdrawal penalty after a CD is opened. YOu are locked in, and then you get hit with new fees to deplete your return. 

Also, how did you determine that you got only 29 days of interest? Did you calculate what you thought you should have gotten and it was different from what you got? If so, are you aware that you have to find out their formula for calculating interest? Different banks use a different number of days of the year to determine, some use 365, some 364, some 366, or other. That should be specified somewhere in their disclosures. Also, some give only simple interest (no compounding), some compound daily, some compound monthly, some compound only quarterly. And with the compounding, that can be quite difficult for you to calculate accurately, although you should be able to get close. But the less you have in the CD, the harder it will be for you to determine if they are really off in their interest calculation because the smaller that number is, the harder it will be to see a definitive difference in the numbers because your calculation will not likely be exact. 

I am wondering if there is some kind of glitch, that the bank thinks you did something that lost you a day of interest -- although I don't see how that could be -- and whatever that something is got you a fee. Regardless, you do need to contact the bank and find out about the fee, complain bitterly about it. And challenge the interest computation as shorting you by a day. 

And if they won't provide satisfaction, then I encourage you to file a complaint with the appropriate banking oversight agency (you can find that for your bank listed here at DepositAccounts.) Don't let them just start to bleed you with a fee that comes out of no where and you are locked in. They should at minimum give you the option to close your CD without any penalty, and return the fee charged so far. 

And then let we readers know what's what.
5
me1004me1004343 posts since
Jan 16, 2010
Rep Points: 2,357
2. Monday, December 2, 2013 - 8:45 PM
 

Update 12/2/13.

I had a little running around the bush in order to get some answer.

The One Account is an online saving account.

Depending on the balance you received the tier rate. Promotion 1.25 APY till 12/31/13 for $250,000+.

Found out a few things, my closes branch is not my local branch, instead it’s the Newport Beach branch.

The service charge free of $35 is system glitch affecting everyone that has this account and “should be corrected tonight at midnight”.

The branch manager said that my interest was being paid up till the last day of the working month. Meaning if the 29th, 30rd, 31st falls on a Saturday or Sunday it will be carried over to the next month.

For the month of November I would receive 29-days worth of interest and for December I would get 32-days worth of interest, even thou there is 31-days.

My point is why should I have to wait when it should have been accounted for already in the November interest like other banks? Keep in mind, prior to the merger PacTrust counted the weekend!

After the promotion the branch manager believes the rates should be 1.07 APY for this balance.

If I have a problem with my account at a bank, why should I have to call the 800 number, only to be told it’s being taken care of my local branch and then find out my local branch is not my local branch office. Then get double talk about interest covers x “working days” per month.

After around 30 minutes of arguing with him, he decided he would inquire about getting my interest paided for 30-days.

To his credit he emailed me, around 2 hours later letting me know, still waiting for an answer, even thou he did say 30 minutes.
1
smcsmc19 posts since
Dec 19, 2011
Rep Points: 39
3. Tuesday, December 3, 2013 - 9:46 AM
Yep, as I said: "I am wondering if there is some kind of glitch, that the bank thinks you did something that lost you a day of interest ..."

So, it was just a glitch. Hey, you should have contacted the bank first, before psoting! Of course, they should have contacted all  account holders the moment they noticed it. 


And this is an alert to  all readers: always double check your statements, as computers do sometimes glitch, whether for an obvious mistake like this on, or just a miscalculation of your amount of interest.

Also, re the interest, what they are doing is common practice. You still have that interest day by day, and it should be paid if you close out the account, they simply post only once a month (actually, I know of at least two banks that do NOT pay out interest that has not been posted, so if you close an account in mid-month, you lost that amount of interest). But your interest is accrued and compounding even though it isn't being posted until next month.
1
me1004me1004343 posts since
Jan 16, 2010
Rep Points: 2,357
4. Tuesday, December 3, 2013 - 10:22 AM
Yep, as I said: "I am wondering if there is some kind of glitch, that the bank thinks you did something that lost you a day of interest ..."

So, it was just a glitch. Hey, you should have contacted the bank first, before psoting! Of course, they should have contacted all  account holders the moment they noticed it.
   
me1004: Thank you for stating the obvious.  I actualy did contact them first then when I was getting the run around which I still am, I decided to let others know.
FYI, I still have not been credit back this "glitch" in fact they have removed the post recent transcation 11/29/13 Interest and 11/29/13 Service Fee, but the balance is the same.
1
smcsmc19 posts since
Dec 19, 2011
Rep Points: 39
5. Wednesday, December 4, 2013 - 6:30 PM
Update:

After 3-business days I was given a full credit refund on the "glitch" service fee.

The interest for the 1-day they didn't pay interest to me will be given to me on 12/31/13. (32-day worth of interest)

This is like having a contact with x dollars per hour, then you decide you're ownly going to pay that person a flat rate.

For those that belive this is also wrong, I incourge you to find another bank after 12/31/13 and move your money else where. Maybe they will take notice and correct this.
3
smcsmc19 posts since
Dec 19, 2011
Rep Points: 39
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