How a Popular $400 sav-acct results in $80 after 5 yrs

PlantaFULL

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Oct 21, 2004
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Opened a standard savings acct at Popular back in 2004. Minimum to open was $300 so I put in 400. No fees, specifically pointed out that the account was only going to sit there without activity. Was meant as a little saving/gift for the kid of a dominican friend when he needs it one day.

Never looked at the account till 5 years later. One would think $410 with whatever moderate interest. Nope, $80 left, bad luck for little Jose. Turns out Popular's policy changed not once but 3 times in the 5 years. First they upped the minimum balance to $500, sub-minimum fee $5 monthly, later upped that fee to $10 and to top it off added another $10 inactivity fee. All monthly. Policy changes affect prior accounts and no need to inform clients. Client is supposed to look at the smallprint policy update memo hanging in the Bank's window so I was told. Glad I went there today and not next year, when the account would have zero'd. Even dared to ask what happens in that case, if then little Jose would owe them fee money.... But Dominican Bankers have a heart too, in that case so I was informed today, after zero'ing the account with fees, they simply close it. How convinient, steal everything from the poor, while a incoming wire transfer of a million Dollars has a flat fee of only $6. Can't steal too much from the rich, they are too smart.

Not specific to DR Banks I know. They just learned from the best I guess, but unlike in the US, no chance of getting your money back no matter how long & loud you bitch. Honestly I think I rather have some pity criminal (non-killer) rob me a few $ or cell phone on the street. That also happened a few times in my life and I have to say this "fee robbery" experience today felt worse then watching street kids run away with my watch. Really makes me wonder how people who work in the financial sector can live with themselves when they make up plans such as "lets clear out all these small sleeper accounts".
 

Squat

Tropical geek in Las Terrenas
Jan 1, 2002
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Banco Popular is well-known to play those kind of dirty little tricks on our back... I am glad I dumped those guys many years ago. I suggest Banreservas as an alternative. I've been with them for ages and never had a single problem.
 

PlantaFULL

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Oct 21, 2004
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Ops.. Not 5 years, 3 since 2004. Felt so sick from this I couldn't sleep and posted in half-asleep state. Rest of the figures are correct tho.

Definitely a lesson. Funny thing is I went in there yesterday with the intention to get their wire-transfer SWIFT in order to transfer a pretty large sum of money to that account. They can of course forget about that.
 

MaineGirl

The Way Life Should Be...
Jun 23, 2002
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One of my banks in Maine (actually a credit union) did the same thing to me. I looked at my statements and they have been charging me an inactivity fee. I called and complained and they restored that money (luckily not a whole lot since I always look at my statements and caught it quick). However federal law (US) now states that accounts with no activity after three years are abandoned. And here I was thinking I was putting it someplace safe until I needed it.....My credit union said one transaction a year is needed.
 

PlantaFULL

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Oct 21, 2004
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Yeah, like I said they learn from he best. The only difference from my experience is that in the US you can solve the issue once they realize that the time it costs them having their customer service deal with you exceeds the costs of issue at hand.

Inactivity fee is something odd indeed. I can see that apply to a checking account, but not a savings account. My granny opened a savings account in my name when I was born. It stayed inactive for nearly 2 decades accumulating interest, not fees. Guess this old fashioned concept of people actually saving money rather then living on credit and spending fast is dead and buried.
 

Talldrink

El Mujeron
Jan 7, 2004
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I cant belive they do that stuff.... My mom bought a cd at 23% and last year we went to cash in, the rate was changed to 12.5 sometime during the year so of course we only got half of what we expected. I asked the manager what is the point of a CD if not to lock in a rate - she said they cannot commit to locking a rate in. So why sell CD's????

Like you said PlantaFULL - it doesnt matter how loud you bitch - you not getting anywere with them. I couldnt get over it!

It reminded me of that Seinfield episode that he tries to pick up his RESERVED rental car and they lady told him that they didnt have any available. He argued that the point of a reservation is to have a car available to when he arrived: "anyone can make a reservation - but it takes a real person to keep one" - Is one of those 'you had to be there moments' to truly appreciate....

I know not everyone out there can relate any moment in life to a Seinfield episode like I do... LOL
 

snoozer

Member
Jan 22, 2004
282
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I had similar problem with one of my credit cards here in Canada, I finally paid off the outstanding balance plus 15 cents. For the past 3 years I have been getting a statement each month showing my account is not active and I have a 15 cent credit balance. Costs the at least 50 cents every month to send the statement. Little things like this make me smile somedays!!!
 

sweetdbt

Bronze
Sep 17, 2004
1,574
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The more stories like this I hear about Dominican banks, the happier I am that my money is with Anoeca. I know people who have no activity on accounts there in years. Alberto just keeps adding the interest each month and renewing at his current rates at the end of each contract year.
 

PlantaFULL

New member
Oct 21, 2004
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It reminded me of that Seinfield episode that he tries to pick up his RESERVED rental car

Funny, I thought about the same thing while in the Bank...The part that came to my mind was "yeah, you better get me the insurance cause I'll beat the hell out of your rental car".
 

bhale

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Mar 1, 2004
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It happens in the US also. My son had an account with Compass Bank in Texas. His acct went into the red by 25 cents. He was hit with $38 charge, and after 4 days, they hit him with $7 a day. When he went to deposit a paycheck, they took half of it to pay for a negative balance of $221. I went to the bank with him and they wouldn't talk to me. I emailed a local guy who writes a column for the newspaper about consumer issues. He immediately called me, and by that afternoon, the overcharges were zeroed out. Guess what caused the overcharge to start with. An automatic $25 transfer from his checking to his savings account. It's not just the DR banks that try to nickle and dime you into debt.
 

PlantaFULL

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Oct 21, 2004
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Popular definitely "imitates" the worst of the US banking system and while informing me about my unfortunate account, it was clear that they justify their wrong doings by whatever bad stories they know about the US system.

The problem isn't the fees and penalties, for all I care they can charge $1000 per day if we go into the negative .25 cents... as long as its written in the contract we signedd. What happened here is several policy changes. I opened the account with $400 knowing the minimum was $300 and a penalty would apply otherwise. That they can just change the minimum to $500 right after we leave the bank without ever informing us is what is criminal. Criminal in any country despite "this contract is subject to change anytime" bs smallprint.

This is like buying a car with a 10 year warranty and after you drive out the lot they change it from 10 to 5 years. I can make up tons of dirty stuff like this too, would probably be good working in this field. What I don't know is how I would avoid killing myself.
 

Estrella1

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Jan 13, 2006
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Banco Mercantil/BHD

I have the same problem but with another bank : before it was Banco Mercantil (Central park Puerto Plata), after it became another name and now it is BHD bank. I have 10 US$ less every month. It was a small amount, but if I put my money on a bank account it is to get more and not less!!!!
And of course they don't tell anything to the clients! :ermm:
 

Talldrink

El Mujeron
Jan 7, 2004
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Bhale - you mentioned
An automatic $25 transfer from his checking to his savings account.

Is this for overdraft protection or this is a simple transfer every month to save money? I ask because some now charge to TRANSFER money from one account to the other. If it is being used for overdraft protection - the bank will also charge a fee for actually doing this for you, usually about $10 per incident.
 

Talldrink

El Mujeron
Jan 7, 2004
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PlantaFULL: I almost did the whole picking at the imaginary 'reservations' in the air scene when she was talking to me at the bank - LOL
 

bhale

New member
Mar 1, 2004
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Talldrink, it was a monthly savings amount. I had never heard of a bank charging a fee daily for a negative balance, and I'm 56. It certainly doesn't cost them anything. I have overdraft protection through a credit card, but if you are living paycheck to paycheck, you get screwed all kinds of ways by countless fees, such as larger deposits for utilities, renting, etc. because of inadequate credit. It's tough to be a young adult these days.
 

Talldrink

El Mujeron
Jan 7, 2004
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Couldnt help but smile when you called yourself a 'young adult' at 56 - that means that I have hope to be young forever since according to your life-clock I'm a toddler!

Thanks...
 

Talldrink

El Mujeron
Jan 7, 2004
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I thought of that too, but my initial thought was what I wrote. Anyway - What happened, it doesnt make sense that I want to think we are all young adults regardless of age?!! LOL
 

Ken

Platinum
Jan 1, 2002
13,884
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Have 0 Balance in My US$300 Account

Was just advised that the US$300 account I opened in 2001 now has a 0 balance. Instead of paying interest, Banco Popular deducted service charges after changing minimum balance requirement from US$300 to 500--all without sending any notification to me.

I was also told that banks have no requirement to notify depositors when they
change policies.

Btw, this was done not only by Banco Popular. I know somebody who lost money in same way way at Banco Santa Cruz. Probably all banks did the same thing.