Bank of America Told Employees to Lie

[chicago51]

Bank of America former employees: 'We were told to lie' - NBC News.com

"Bank of America routinely denied qualified borrowers a chance to modify their loans to more affordable terms and paid cash bonuses to bank staffers for pushing homeowners into foreclosure."

 

[tadman95]

Bank of America former employees: 'We were told to lie' - NBC News.com

"Bank of America routinely denied qualified borrowers a chance to modify their loans to more affordable terms and paid cash bonuses to bank staffers for pushing homeowners into foreclosure."

Wouldn't doubt it.

 

[IrishRugger2013]

Unfortunately, not surprising. So many shenanigans by everyone involved in the housing crisis.

 

[md_bennett]

Been waiting for BOA to finally get hammered. Gonna get their charter revoked pretty soon. They tried to force my family to do a specific kind of loan with horrible terms when we qualified for a much better one. Went elsewhere and got the best terms and style loan available that I was told either we did not qualify for or the house was in the wrong area to get. BOA is the worst kind of greed there is. Never want to see businesses fail but this bank is one that should have been obliterated four years ago and their higher ups imprisoned.

 

[chicago51]

I highly doubt Bank of America gets in too much trouble. The American justice system is terrified of Banks.

I also suggest that if anyone has money in a big bank that has amount of financial derivatives to get your money out of those banks and into a smaller local bank if you can. Now that I left my last job once I get my last paycheck and my vacation pay I'm moving my money out of Chase.

 

[enrico514]

I believe they are too big to prosecute...

 

[pkt77242]

I highly doubt Bank of America gets in too much trouble. The American justice system is terrified of Banks.

I also suggest that if anyone has money in a big bank that has amount of financial derivatives to get your money out of those banks and into a smaller local bank if you can. Now that I left my last job once I get my last paycheck and my vacation pay I'm moving my money out of Chase.

The question is why? Have they screwed you over, have they lied to you, have they given you bad information?

 

[Whiskeyjack]

I highly doubt Bank of America gets in too much trouble. The American justice system is terrified of Banks.

Sadly, this. "Too big to fail" apparently means "too big to prosecute" as well.

I also suggest that if anyone has money in a big bank that has amount of financial derivatives to get your money out of those banks and into a smaller local bank if you can. Now that I left my last job once I get my last paycheck and my vacation pay I'm moving my money out of Chase.

Credit unions are non-profits, so they don't pay taxes. Banks do, though; that alone accounts for the most the disparity in fees, costs, etc. Large retail banks also offer a ton of services that 95% of Americans will never need-- a branch on every corner, wealth management services, institutional knowledge of foreign transaction processes, etc. All of those costs get passed onto their patrons, whether they use them or not.

Size also makes a big difference. The big four have millions of customers and handle mind-boggling amounts of money. As an individual, you're completely insignificant to their big picture. But at a small local credit union, you'll be 1 of maybe a few hundred thousand members. You could even run for their board, if you wanted. That's why they treat you better.

Long story short: get your money out of the large retail banks and into a local credit union.

 

[pkt77242]

Sadly, this. "Too big to fail" apparently means "too big to prosecute" as well.



Credit unions are non-profits, so they don't pay taxes. Banks do, though; that alone accounts for the most the disparity in fees, costs, etc. Large retail banks also offer a ton of services that 95% of Americans will never need-- a branch on every corner, wealth management services, institutional knowledge of foreign transaction processes, etc. All of those costs get passed onto their patrons, whether they used them or not.

Size also makes a big difference. The big four have millions of customers and handle mind-boggling amounts of money. As an individual, you're completely insignificant to their big picture. But at a small local credit union, you'll be 1 of maybe a few hundred thousand members. You could even run for their board, if you wanted. That's why they treat you better.
Long story short: get your money out of the large retail banks and into a local credit union.

I disagree with this completely. Many local credit unions are the most unstable banks/CU currently. They were hurt by the recession and they still haven't recovered (especially living in AZ, CA, NV, FL, etc). They had all of their loans tied up in hard hit places and are struggling.

Also you don't get treated any better. My wife and I have accounts at a local credit union and a large bank, and we find that we get better treatment from the large bank. Need a fee reversed? It was a hundred times easier at the big bank. The credit union just lectured us and wouldn't reverse anything (my wife has banked there for 15 years and never asked for a fee reversal). Now not all Credit Unions are that way and not all big banks are evil and bad. The key is to find what works for you.

Also the line about 95% of Americans never needing the services they offered is a little crazy. Walk into a local credit union and try and talk about rolling over a 401K and then go to a large bank and then compare your experience. Most of us want to retire and most of us want the best advice for how to invest our money so that we can retire someday. I agree with your point that for some people Credit Unions are better but to make a blanket statement that you should get your money out of large banks into credit unions, is over the top.

 

[pkt77242]

By the way I am not defending BofA.

 

[Whiskeyjack]

I disagree with this completely. Many local credit unions are the most unstable banks/CU currently. They were hurt by the recession and they still haven't recovered (especially living in AZ, CA, NV, FL, etc). They had all of their loans tied up in hard hit places and are struggling.

It goes without saying that one should do some basic online research into the strength and reputation of any bank or credit union when considering a switch.

Also you don't get treated any better. My wife and I have accounts at a local credit union and a large bank, and we find that we get better treatment from the large bank. Need a fee reversed? It was a hundred times easier at the big bank. The credit union just lectured us and wouldn't reverse anything (my wife has banked there for 15 years and never asked for a fee reversal). Now not all Credit Unions are that way and not all big banks are evil and bad. The key is to find what works for you.

Sorry to hear you had a bad experience. Was it with Desert Schools? I've been royally screwed over by both BofA and Chase. Never going to a big retail bank again.

Also the line about 95% of Americans never needing the services they offered is a little crazy. Walk into a local credit union and try and talk about rolling over a 401K and then go to a large bank and then compare your experience. Most of us want to retire and most of us want the best advice for how to invest our money so that we can retire someday. I agree with your point that for some people Credit Unions are better but to make a blanket statement that you should get your money out of large banks into credit unions, is over the top.

Most of the credit unions I'm familiar with have affiliated or in-house financial advisors who can roll over a 401k quite easily. Still can't think of a single service not offered by the average credit union that most Americans need.

 

[pkt77242]

It goes without saying that one should do some basic online research into the strength and reputation of any bank or credit union when considering a switch.



Sorry to hear you had a bad experience. What it with Desert Schools? I've been royally screwed over by both BofA and Chase. Never going to a big retail bank again.



Most of the credit unions I'm familiar with have affiliated or in-house financial advisors who can roll over a 401k quite easily. Still can't think of a single service not offered by the average credit union that most Americans need.

It was Desert Schools (I hate Desert Schools). We just finished paying off my wife's car loan with them and I can't wait to close our checking account with them. I agree that anyone can roll and IRA over but it is harder to get good financial advice and to have good options for investing the funds.

 

[Whiskeyjack]

It was Desert Schools (I hate Desert Schools). We just finished paying off my wife's car loan with them and I can't wait to close our checking account with them. I agree that anyone can roll and IRA over but it is harder to get good financial advice and to have good options for investing the funds.

Ha. Well we've both had strong negative experiences, so perhaps we're not fit to offer unbiased advice on this subject.

Though I'd recommend an independent financial advisor over an institutional one anyway. Institutional advisors frequently run into (what I'd characterize as) conflicts of interests in the sorts of products they push onto their clients.

 

[MJ12666]

I highly doubt Bank of America gets in too much trouble. The American justice system is terrified of Banks.

I also suggest that if anyone has money in a big bank that has amount of financial derivatives to get your money out of those banks and into a smaller local bank if you can. Now that I left my last job once I get my last paycheck and my vacation pay I'm moving my money out of Chase.

I highly doubt that they will get in much trouble because of a lack of evidence. These are difficult cases to prosecute. Most of the time the government uses its virtual unlimited resources to extort companies into a settlement even if a case is not warranted. Hank Greenberg is the only individual (see Geenberg vs Spitzer) in recent memory who has the courage and resolve to stand up to government Cosa Nostra.

I concur with your suggest about maintaining an account with a major bank but only if:

1. You are can get the same or better service at another bank at an equal or lesser cost; and

2. If your cash balance is greater then $250,000 (which is the amount insured by the FDIC). Any amount in excess of the $250,000 is at risk (with some exceptions which I don't feel like enumerating). You should never keep more then $250,000 at any one bank.

 

[chicago51]

I agree with Whiskey going with small credit unions is the way to go.

 

[magogian]

I also suggest that if anyone has money in a big bank that has amount of financial derivatives to get your money out of those banks and into a smaller local bank if you can. Now that I left my last job once I get my last paycheck and my vacation pay I'm moving my money out of Chase.

Pretty dumb. Big banks are too big to fail. But they let the medium and small ones fail all the time.

 

[gkautz10]

This type of stuff pisses me off. The banks and their advanced financial derivatives that none of them are smart enough to understand, are the reason why the country went through the recession. I am going to work for 1st Source Bank as a Corporate Management Trainee starting in August and I am lucky to be involved in an ethical bank that is semi large, but still a local community bank.

 

[RDU Irish]

I disagree with this completely. Many local credit unions are the most unstable banks/CU currently. They were hurt by the recession and they still haven't recovered (especially living in AZ, CA, NV, FL, etc). They had all of their loans tied up in hard hit places and are struggling.

Also you don't get treated any better. My wife and I have accounts at a local credit union and a large bank, and we find that we get better treatment from the large bank. Need a fee reversed? It was a hundred times easier at the big bank. The credit union just lectured us and wouldn't reverse anything (my wife has banked there for 15 years and never asked for a fee reversal). Now not all Credit Unions are that way and not all big banks are evil and bad. The key is to find what works for you.

Also the line about 95% of Americans never needing the services they offered is a little crazy. Walk into a local credit union and try and talk about rolling over a 401K and then go to a large bank and then compare your experience. Most of us want to retire and most of us want the best advice for how to invest our money so that we can retire someday. I agree with your point that for some people Credit Unions are better but to make a blanket statement that you should get your money out of large banks into credit unions, is over the top.

Going to the bank to rollover your 401k or do any level of real investing is kind of nuts. I'm sure there are good bank financial advisors out there, however they are typically less experienced and more motivated to push proprietary or heavily loaded products than just about anyone. Not to mention the carousel of people sure to rotate through the position you are dealing with.

And bank trust departments are notoriously inept at investing. Their focus is on feeding the beneficiaries of trusts and the investment decisions can range from poor to dangerous, including loading up on their own bank's stock and CDs. The big dogs are usually better on this front where they have full fledged investment arms doing a professional job on that end, but also charging way more than their services are probably worth since they know trust money is difficult to change advisors when the trustee is in your back pocket.

 

[RDU Irish]

Ha. Well we've both had strong negative experiences, so perhaps we're not fit to offer unbiased advice on this subject.

Though I'd recommend an independent financial advisor over an institutional one anyway. Institutional advisors frequently run into (what I'd characterize as) conflicts of interests in the sorts of products they push onto their clients.

The entire financial industry it littered with conflicts of interest. Merrill Lynch now sends you to a call center if your accounts are less than $250K or $500K, can't even deal with a consistent person.

Most independent advisors will gladly take $50K-$100K and up clients and actually take time to meet with you regularly. All advisors want the business, not all advisors will answer your calls once the account is moved over and they get their commission out of you.

Less than $50K, you run significantly more risk of what I call "hit and run." The "advisor" dumps you in a front end loaded product as fast as possible and takes no proactive steps to work with you. If someone has 1000 clients, they likely do this for a living and you are better off on your own. Advice on budgeting, debt management, 401k, Roth vs. Traditional, insurance, these are things that an advisor can have more impact for you than whether your $20K IRA earns an extra 2% this year. I see too many cases of people obsessing about returns that are largely out of everyone's control while carrying a 5% mortgage that could refinance to save them enough money to fully fund a Roth IRA annually.

Ask how many clients they have, average account sizes and reasonable service expectations. If you are a small client, an annual meeting to review your overall situation is not unreasonable. You may be small today, but if you are a committed saver you are a great client for the future, besides compliant clients with reasonable expectations being much more satisfying to work with than overbearing people with zero financial discipline expecting to beat the market every year. Wirehouse brokers won't want you but most independent advisors will make the time for you.

 

[ulukinatme]

I have some accounts/cards tied to a medium size bank, but my loans are always through the local credit union because they have better interest rates.

 

[Bogtrotter07]

I was just talking to a user in PM about the Verizon spying situation. My thesis was that this is an issue that is really going to resonate for a long while.

Here is the problem. Verizon, AT&T, etc., are all giant whores, to begin with. [Please add all banks and commercial lending institutions here] I think there are a lot of problems with how these mega-giants conduct their business. In actuality, I think there is room for you to be strictly and literally right, but the system to be wrong. I think big companies have been allowed to collect too much information for too long. There needs to be MAJOR legislation busting these companies for what they collect and how they do business.

Just two examples: AT&T is still charging beacoup elderly customers for phone rental. These are the old AT&T phones you had to rent before the '80's. They may only be charging three or four bucks a month, but that is what they have been charging for 50 or more years in some cases! Thousands of dollars these elderly paid, that they didn't have to pay. I consider this theft.

Also, you and I pay our auto insurance rates based upon what? Not our driving record, but our CREDIT SCORE. Also where we live. My rate went up $120 when I moved because I am 600 feet inside the city limits. Had my house been on the other side of that line I would have saved the scratch. I can live with that. But the credit score thing, coming into effect with the economic crash? That has been an insurance company bonanza! Why because they can find out every piece of economic information about you! That just ain't right!

See, you can only screw people over for so long. And they keep doing it. Why? Because the American people don't know how to stop it. People I have listened to want to line people up and shoot them. They want to prosecute big banks, etc. That isn't the problem. The problem is ethics. And honesty. We all go for convenience, and safety instead of standing for what is right. If it were unconscionable for us to do business with the scumbag outfits we put in charge of the show, they would adapt or get out of business.

My dad used to speak about the '50's, '60's, and 70's when they would catch dairies, colluding to fix prices, or cheating on content, the would turn it over to the Federal prosecutors, and in Federal Court the managers of the dairies would be fined. Maybe only a thousand dollars or so, but they had to pay it personally, immediately, and their names were published as having been found guilty. With most the embarrassment and shame was too much.

I just talked to an attorney about another matter, and the attorney's response was, "He doesn't care what other people think of him because he has the money!" And so it goes!

Until we reestablish a sense of honor and justice which includes protection for the weakest among us, we are relegated to shopping for the thief that "screws" us the most comfortably!

 

[Bogtrotter07]

Pretty dumb. Big banks are too big to fail. But they let the medium and small ones fail all the time.

When have you seen a bank fail? As long as you don't have more than 250 K in an account it will be protected.

I worked in IT for a large company that did projects in the '90's. What few know is that every financial institution had to be Y2K certified by 30JUN98. Those that weren't had their names changed overnight and had new management on 1July98. It was more than a few. It was an incredible illustration of how the system works.

How they robbed everyone in '08 was by stealing value of citizens houses, and the value of individuals investments, pensions and retirement accounts. They painted themselves financially into a corner with two wars and massive tax cuts, so they had to accelerate their level of theft beyond the CPI, and that lie that is called inflation.

 

[Ndaccountant]

I have mutiple bank accounts for a variety of reasons with an assortment of banks and CU's. Never had a problem with any of them. Sometime the large banks offer better opportunities, sometimes the credit unions do.

Also, it looks like credit unions will now be allowed to trade interest rate derivitatives after a recent proposal to lift the two year ban. MBS would still be banned.

 

[ACamp1900]

I gave up on Bank of America a while ago over a number of different things...

Not that this was it but I found it very ironic…I know this isn't a national thing but our local branches have tellers that do not speak English... at all... like when you get to the window a secondary interpreter has to come to the window so you can communicate with the employee… That and the special interest rates to illegals that came out a couple years back struck me as laughable for a bank of that name... anyway slightly off topic, but yeah.

 

[BGIF]

I have mutiple bank accounts for a variety of reasons with an assortment of banks and CU's. Never had a problem with any of them. Sometime the large banks offer better opportunities, sometimes the credit unions do.

Also, it looks like credit unions will now be allowed to trade interest rate derivitatives after a recent proposal to lift the two year bank. MBS would still be banned.

Is that "Monetary B.S." or "Major B.S"?





(No reply needed. I looked it up.)

 

[BGIF]

I gave up on Bank of America a while ago over a number of different things...

Not that this was it but I found it very ironic…I know this isn't a national thing but our local branches have tellers that do not speak English... at all... like when you get to the window a secondary interrupter has to come to the window so you can communicate with the employee… That and the special interest rates to illegals that came out a couple years back struck me as laughable for a bank of that name... anyway slightly off topic, but yeah.

You grumpy, old white guys never stop.

The interrupter was very Bunkeresque.

 

[dshans]

You grumpy, old white guys never stop.

The interrupter was very Bunkeresque.

"Stifle yourself, Edith!"

 

[ACamp1900]

BUT DEY TOOK ER JOBS!!!!

 

[chicago51]

I have mutiple bank accounts for a variety of reasons with an assortment of banks and CU's. Never had a problem with any of them. Sometime the large banks offer better opportunities, sometimes the credit unions do.

Also, it looks like credit unions will now be allowed to trade interest rate derivitatives after a recent proposal to lift the two year ban. MBS would still be banned.

Derivatives are a ticking time bomb. Either student debt bubble or the derivatives will be the next bubble that burst. If its derivatives it could be 1929 as the derivative market is market is hundreds of trillions of dollars, multiple times the world GDP.