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U.S. PIRG Consumer Blog
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September 30, 2008
Citi To Acquire Wachovia
In yet another consolidation of the banking industry, Citibank has announced it will acquire the faltering Wachovia (FDIC website). The Big Three banks -- Chase, Bank of America and Citibank -- will now hold around 30% of all deposits nationwide. I expect that the big banks will renew their push to weaken the 10% national deposit cap rule.
Reporters have been calling-- what do consumers do when their bank is acquired?
(0) Well, first, you should bank at a member-owned credit union not at a bank. The fees are lower and the rules are friendlier. But if you are a bank customer and your bank is acquired:
(1) Expect higher fees. Big banks charge bigger fees, because they can. They have market power and you have fewer choices. (2) Expect that your positive account features won't last in the new account at the new bank-- probably the rules will be worse. (3) And for some of you this could be the most important: Keep copies of all your statements (print out statements monthly if you are an on-line customer) and watch for glitches and mistakes, especially if you have automated deposits or withdrawals being made to the account. Banks still have not figured out computers and when they start changing account numbers, there can often be systemic errors affecting many customers who get justifiably angry when their deposits aren't received or their automated payments go awry.
Posted by Ed Mierzwinski at September 30, 2008 03:57 PM
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