Next to them was a card that she insisted I look at.

The card was a note to her from the staff at her local bank branch (it was one of the big 4). The flowers had come from the staff personally (most definitely not the bank) and the card read, “Thank you for being such a lovely customer.”

So remember, the staff at your bank – and at the end of the complaints line – are people who are likely to be struggling as much as you. Maybe even more, would you get a job as a complaints officer at a bank unless you were absolutely desperate???

And it pays to be polite with them. Let them know it’s not them you’re upset at…just the great big nasty bank who is trying to take you for every cent you have.

Before things get really bad make sure you read this.

For your own mental health and stress levels (and the sake of your family) have a look at the suggestions below:

1. Talk to someone who really listens – like us
2. Tell the offending party how you FEEL – as a start, send them a spank and go to our Facebook page. And put up a complaint on the wall. It will get noticed believe me. The banks HATE bad press and they do keep an eye on our site.
3. Start to act. This lifts you from a dangerous state of fear, depression and frozen inactivity and gets the blood flowing. Promotes good mental health and heads off heart attacks!! Even if it is just taking a walk and getting some clear air. Change of environment often helps. (Retail Therapy is the exception – it will be followed by deeper depression when the credit card bills arrive and just gives the banks more of your money!)

Tips for Action: (remember we are not lawyers or financial advisors so we are just telling you what we would do and what the self help sites around suggest as good practice – and what we have seen works!!)

As a major hint. Document EVERYTHING. Get EVERYTHING in writing. Make extensive notes in a diary and ALWAYS ask for a name when you first are put through to anyone. Make a note in the diary of that name, the telephone no and time/date of call plus what was said.

Keep it totally factual – “just the facts”

This way when you get in front of anyone, you are a “sane logical person” – not an “hysterical stereotype” – sorry for the bluntness but this sort of situation calls for straight talk between us.

If you have not made any notes so far, sit down right now (if it is not convenient do it anyway!) and write down everything you can remember. Dates of calls, times, collect all names and numbers you can.

Now it’s time to start making some phone calls and letting people know exactly what is not working for you and how it can work for you. Remember you are a paying customer with rights!

For details on the right people to call, Spank Your Bank provides links on this page.

http://www.spankyourbank.com.au/formal-complaints-process

In the mean time you have our good wishes and please keep us in the loop. If you are confident enough to go on our facebook page you might find other folk who have been through the same thing will contact you with more suggestions, and a problem shared is a problem halved!!

Sort of glass half full philosophy which never hurts anyone!!

p.s. if you feel like you’ve hit rock bottom, then  try someone like

]]> http://www.spankyourbank.com.au/blog/?feed=rss2&p=659 0 http://www.spankyourbank.com.au/blog/?p=648 http://www.spankyourbank.com.au/blog/?p=648#comments Wed, 15 Feb 2012 06:25:41 +0000 sybblog http://www.spankyourbank.com.au/blog/?p=648 Continue reading →]]> The banks may be in business for a profit, but it is time to remind them that it pays to put customers NOT shareholders first.

Whether you’re refinancing or applying for your first loan, we believe that the best strategy you can take is to be an active banker. By being an active banker you are keeping the big business banks on their toes and paying them as little as possible. It’s a simple concept we like to call “shop around” .

Here’s how we suggest you go about it,

1. Call a mortgage Referrer (e.g refunds direct). This is a quick and easy way to establish if any of the big banks are worthy of your business. They have an excellent network of available lenders, are experts in their trade and charge a lot less than mortgage brokers for their services.

2. Try a mortgage broker as well (it’s always good to dip your feet in a few ponds). Mates Rates Mortgages refund you their trailing commissions (in other words saving you $1000s over the life of your loan) and we have found are very professional to deal with.

3. If you are self employed or are not seeking a 100% standard loan, then getting a loan can be very difficult since the GFC. Seek Home Loans is a traditional mortgage broker network who can to cater to people who don’t fit into the perfect mould – which unfortunately many of us don’t!

4. Call a credit union. It can be hard to get a loan with a credit union and some times their rates can’t match the competitive market. But, at the end of the day, their business is your business, so it’s ALWAYS worth a call. Comes Back to You is a useful credit union site for helping you to find a local credit union. Alternatively, if you have a teacher as a family member then theTeacher’s Credit Union is renowned for its impeccable customer service.

By contacting these three groups, we believe you will have effectively covered the Australian Mortgage market.

Also, don’t forget to Spank Your Bank so they know exactly why you’re leaving them!

p.s. Even though the Big 4 share ownership, they still do have a little bit of sibling rivalry between one another. So if you would prefer to stick with the Big 4, that’s ok. Just contact them through a mortgage broker. If you go directly to them, they are VERY unlikely to do you their best deal.

NAB certainly hasn’t broken up with the Big Four. In fact almost all of the Aussie banks are just one big happy family sending money to the same groups of shareholders and disregarding you the customer.

Visit this page on our website to see how cuddly all of the Aussie Banks are.

“High returns, little competition – life is still sweet for the big banks”

I have a business proposition for you: how would you like to invest in a company with a steady stream of incoming business, customers that are unlikely to switch to competitors and where, if it all goes wrong, the government guarantees it won’t fail?

”Where do I sign?!” I hear you ask.

Read more: http://www.smh.com.au/opinion/politics/high-returns-little-competition–life-is-still-sweet-for-the-big-banks-20120209-1rwkv.html#ixzz1lvojKuwG

Anyway, I just received an email that looked pretty darn good indeed. Did you receive it too?

The offer is stated as being thanks to a group called Direct to Lenders who act as mortgage referrers. Their phone number is 1300 731 127.

This email certainly got my attention and it sounds like it’s worth the time to make a phone call. Who knows you may be able to save a lot of money and make sure you let your current bank know that because they weren’t treating you right, you left!

We’re keen to know if you have any success, please let us know what happens after you make that phone call!

Some banks have passed the 0.25% rate cut that the RBA announced on Tuesday in full. Others have not. So, if your bank is one that has not, we suggest that you look at getting a better deal with the banks listed below. We’ll add to the list as we hear of more, but if you see a bank or credit union missing, please let us know.

• Bank of Queensland
• Members Equity Bank
• BankMecu
• My Credit Union
• Police Credit Union
• Select Credit Union
• Queensland’s Mutual Bank
• Bankstown City Credit Union
• Everyone’s Credit Union Australia
• Heritage Bank
• Northern Beaches Credit Union
• ANZ – it took them a few days, but they were the first of the BIG 4 to step up to the plate.
• ING Direct Australia
• NAB – Unlike their November shambles, NAB passed the rate cut in full this time round.
• Yellow Brick Road
• CBA
• Westpac – last of the Big Four, but they all did it…finally.
• Bank of Melbourne
• Greater Building Society

Changing banks is no fun matter, despite what Wayne Swan says about it being easy now. However, we do need to remember that banks are businesses who will only care about us if we make them. When they don’t look after us, that means it’s time for us to leave.

When working out how much you can borrow there are four important things you need to keep in mind.

1. Interest rates
2. Interest
3. Your income
4. Loan term

1. Interest rates – Even if you get a fixed rate initially, your interest rate will vary over the course of your loan. Therefore at some points during your loan period, you will be required to be pay and at some points you will be required to pay less. Therefore, even though rates are lower now, it is a good idea to calculate what your repayments will be if your interest rate is 8%. You should consider this to be your repayment amount. That way when interest rates rise, you will have built up a reserve of cash and won’t be needing find money in places where it doesn’t exist.
2. Interest – Interest is an evil thing and the more money you borrow, the more interest you will pay. For example in the first year of a $300,000 loan (25 year term) you will be paying $2315/month in repayments of which approx. $2000 will be interest. This means that starting small is often a good way to go. Put yourself in a position where you can pay back plenty more than what you’re borrowing. This way you’re paying less interest. Remember you can refinance and borrow more down the track. But the less you borrow at a time, the less interest you pay.
3. Your income – you will be making this repayment every month for approximately 25 years. As such, it is important that you assess not what your income is now, but what it is likely to be over the next 25 years. It may grow, but you may also be out of work for a time. If you haven’t done the baby thing yet and are thinking about, then this affects your income significantly too. It’s impossible to know every situation, but it’s still worth preparing yourself where you can.
4. Loan Term – we’ve said it once, we’ve said it twice and we’ll say it again. Unless you win the lottery or something else wonderful like that, then you will have this loan for 25 years (give or take a few). That’s a life time prison sentence. So, once you’ve worked out your weekly repayments work out if you’re willing to come up with this money every week for 25 years and then decide if you really want to borrow that much.

Keeping all of these things in mind, there is a pretty simple formula to working out how much you can borrow. We work this out by establishing how much you can repay. To do this, you need to have some idea of what you’re earning vs what you’re spending – it’s called a budget. Once you’ve worked out your average left over weekly amount minus a little bit for your rainy day fund, then you know what you can repay.

Once you know what you can repay, go to this mortgage calculator and it will tell you how much you can borrow.

It’s then a good idea to set this calculator up and have a fiddle with the interest rate, the amount and extra repayments.

Voila, you’re set and ready to go. Now you just need to prove it to the bank!

Remember when applying for a loan it is important to keep all your options open. Try a credit union, try a mortgage referrer, try a mortgage broker and try a non-banking lender. Taking the time now can save you thousands in the long run.

A fan of our website recently wrote to us to inform of us of a glitch in the banking system that would have resulted in him paying extra fees had he not made a query with the bank. As he was aware that many people were possibly charged this raised fee in error, he has allowed us to re-post his story up here.

The bank error occurred with http://www.cardservicesdirect.com.au/ (a part of the Citibank Group). To give the company credit, as you will see below, when they did realise the error was at their end, they apologised. But it still took an active bank customer on the part of our friend, Consumer101.

Day One -

Consumer101 notices an increased fee on his statement, so writes the following to his bank.

Good morning,

I received my montly credit card bill, and it notes that the Primary Annual Cardholder Fee will increase from $85p.a. to $118p.a.

Can you please advise why this fee has been increased?

Thank you,

His Bank replies with the following,

We thank you for bringing this matter to our attention and sincerely apologise for any inconvenience caused. We regularly review our products and changes are often made which take into consideration the benefits and privileges associated with the cards. This change was made following a product review. We advise you in the terms and conditions when you first receive your card that fees and rates may change and we will always provide you with advanced notice when changes occur. For your convenience, you can also contact us on on 1300 135 538, or if overseas via + 61 2 8225 0620.

We are available 24-hours a day, seven days a week. If there’s anything else we can do to assist you, please let us know and we’ll be happy to help.

Thank you for using Card Services Online.

Yours sincerely,

Card Services Customer Service

Ever diligent Consumer101 continues the query as he feels his question has not been appropriately answered.

Thank you for your response.

I understand that under the terms and conditions that you may change rates and fees, and do not dispute this.

My concern is regarding why the fee was increased. You have stated that following a review of the product, in which you take into consideration benefits and privileges associated with the cards, and following the review made the annual fee increase. I do not believe that fee increase is a benefit or privilege for the card holder.

Can you please further explain this product review, and why this increase was made?

Thank you

And the bank replies again with nothing helpful to offer,

Thank you for your email.

For your reference you are charged an annual fee to cover the cost of operating your account such as sending statements, providing 24-hour customer service, etc.

Regarding your request for additional information on our decision, we regret that we are unable to be more specific as Card Services is entitled to keep certain aspects of our operations confidential.

However, please be advised that we do have a range of credit card products you can choose from and we can help you assess the card that is most suited to your needs.

For example, you may choose to change your product type from a Gold credit card to a Silver card to reduce the cost of the annual fee.

For your convenience, you can contact us on 1300 135 538, or if overseas via + 61 2 8225 0620 for further assistance. We are available 24-hours a day, seven days a week.

If there’s anything else we can do to assist you, please let us know and we’ll be happy to help.

Thank you for using Card Services Online.

Yours sincerely,

Card Services Customer Service

That letter cracks me up…Essentially they’ve said “We can’t help you, but if there’s anything you need, don’t hesitate to ask…so we can say NO again!”

Not long after this letter was sent, a “real person” from the bank wrote the following to Consumer101.

It’s good to see that the matter was resolved and we want to thank Consumer101 for sharing this information. We hope that if you are a customer of Citibank that you take the time to ensure that your fees haven’t jumped up for an inexplicable reason.

Now it’s always handy to know a few facts about the company you’re banking with, so below are just a couple of things you might like to know about Citigroup – the owner of Citibank Australia.

Citibank’s wholly owned subsidiary “Citicorp Nominees Pty Ltd” owns:

• 3.84% of ANZ
• 4.30% of CBA
• 4.57% of NAB
• 4.79% of WBC

In fact they own plenty of a lot of companies. You’ll see their name pop up on the shareholder list of most of Australia’s Top Ten biggest public companies.

According to the Forbes website, they are ranked as the 10th World’s Biggest Public Company with $111.5 billion in annual revenue, $10.6 billion in profit and $1913.9 billion in assets. Citigroup has a market value of $132.8 billion…perhaps you could buy it when you go out to buy some milk tomorrow

Thank you Consumer101 for sharing your experience with us.

To read more about Citibank, visit this page on our website.

Copyright (c) 123RF Stock Photos

Something other than legally being able to drink happens when you turn 18. That is, legally, you are now declared an adult.

Being declared an adult doesn’t really feel like it means a lot. You certainly don’t feel any different and nothing feels like it’s changed – well, except your ID is welcomed when you show up at a pub

What most of us don’t realise is that, once we turn 18, the consequences of our actions have officially become our problem AND the law expects us to act with the wisdom that in reality only someone who has lived a life time can truly do.

Harsh? True. Reality? Also True.

Acknowledging that you are now an adult matters a lot when it comes to things like credit management.

As an 18 year old, you are now legally obliged to pay your bills. If you can’t, there can be problems. But, if you don’t do anything about the fact that you can’t, then there can be plenty more long term unexpected problems… like when you grow up a little more and decide to buy your first home and the bank sees you’ve got a black mark on your credit.

Now before you freak, you need to realise that if you can’t pay your bills, it’s still going to be OK as long – as you deal with the situation. That means, no sticking your head in the sand and pretending the problem doesn’t exist. And the sooner you deal with it, the easier it is going to be to fix.

If you cannot pay a bill that you have received, the first thing you need to do is ring the company that has sent you the bill. RING BEFORE THE DUE DATE. Let them know that you’re having trouble dealing with the amount owing and ask them how they can help.

If this doesn’t fix the situation, then take a look at some of the following links. These websites include phone numbers where you can contact people who will help you with your unpaid bills.

http://www.moneysmart.gov.au/managing-my-money/managing-debts

http://www.moneyhelp.org.au/

http://www.debtmediators.com.au/

Finally, remember that as long as you deal with it, then the problem won’t have long term effects and it will stay manageable.

We hope this post helps you. Please leave a comment below to let us know how you dealt with a situation like this. Sharing knowledge is sharing power.