Here’s this week’s “Customer NO Service” story.
Friday's mail arrived with a letter from Wells Fargo, my current bank (through merger, not choice). Because they don't have a copy of my homeowner insurance on record, they have put a binder on a bare-bones policy and will be adding the $9,531.33 one-year premium to my line of credit loan (which has had a balance of $0.00 since March of this year). That's roughly five times what I currently pay -- for a lot less coverage.
Ten years ago my Wachovia account rep asked me to take out this line of credit loan for $100,000 because we qualified for their lowest rate -- Prime plus 0%. We qualified because we had a near-perfect credit rating. Turns out points are deducted for not having a mortgage. When I told him I didn't need it, he convinced me it would be a good thing even if I didn't use it and after some negotiation I took out the loan. It was almost a handshake deal but the rep mentioned that I needed to keep insurance on the house and use the loan at least once a year to avoid a $50 service fee. I used it every year and paid it off and never heard a word from the bank until 2009.
Last December Wachovia sent me a pleasant note requesting a copy of my current homeowner policy and I politely complied. A few months later Nationwide Insurance sent me another pleasant note notifying me my insurance was being canceled, along with 60,000 of its other Florida coastal clients. Found another insurance company and on November 1, 2010 the new policy went into effect. I neglected to notify Wells Fargo, who had taken over the loan so I got this multi-page threat letter, dated 11/1/10, which ended with "We appreciate your business and look forward to serving you in the future."
I spent a little time Saturday calming myself and then wrote a brief letter to Wells Fargo, enclosing a copy of my homeowner policy declaration page to be sure they didn't follow through with their own insurance policy. My letter thanked them for their thoughtful reminder and to please close the account immediately. Decided to surprise them in the near future with the closing of the investment account, two checking accounts and two credit cards. Just so they don't take it the wrong way, my wife will keep her money market account open. I’d close that one as well but then my wife would be making the mattress uncomfortably lumpy.