To Switch or Not To Switch
Switching costs. That’s what companies try to build into their model to dissuade you from switching to another company or brand. One of the highest switching costs has got to be changing back accounts. Especially with direct deposit and the various monthly payments directly debited from your account. Well, maybe not yours, but mine. Though if you’d be kind enough to let my payments come from your account. . .
Excuse me. I digress. There’s a new Bank of America across the street from me. Currently, I bank with Citibank, but there’s no ATM nearby my house, which has always been something of a pain. So I am seriously considering changing to Bank America. But the hassle. Coordinating the switch over will be a pain. I’ll probably do it for the long-term convenience.
Comments
I dropped BOA over a lack of customer service with a home loan over a mistake in my credit report, which was cleared up in minutes, but they wouldn't re-process the request. Oh well they didn't get any fees from me, someone else did.
I dropped Wells Fargo over a lenghty dispute over one of their broken ATM's. Took them 45 days to finalize a deposit to cover the cash their machine it did not spit out.
I put a high premium on customer service, and will drop any bank in a heart beat no matter the one time costs of direct deposit changes. I currently bank at a small bank (less than a dozen branches) so any day I want to I can drive down to, and visit the bank president or the loan comittee members. Can they back a hostile takeover bid of sears finanicial? No, but they will talk to me without a service charge. And I get an answer from the controlling authority in a timely manner.
Only problem I have had is I wasn't able to buy Euro's last month when I needed them. Had to go to an exchange house for a slightly higher service charge. Considering the number of times I will have a need for Euros' I am satisfied.
Actually I make a lot of decisions based upon customer service. Competitors with big box stores ought to pay attention to customer service competition, rather than pure price competition. I quit shopping at a combination hardware/housewares store because of their lack of customer service, and I am sure that level of service was corporate wide and one of the reasons they filed for bankruptcy. They were one of those places with 14 checkout stands, but only three cashiers "working." I picked up some item and took it to the cashier to buy, they told me it was a display item and "YOU will have to put it back and find the shelved item." My reponse was no "I do not 'have' to do anything." I left it on the counter and went to the next store where they found it for me, and checked me out with a smile.
Wow what a rant. I hate a lack of customer service.
Posted by: Justin | October 25, 2004 12:58 PM
I agree with you about small banks, and use them in PA. But there are no really small banks in NYC. They're all humongous hogs.
Posted by: Mom | October 25, 2004 04:37 PM