Forum Credit Union = Awesome

A few posts back I was ranting about Chase and their aptitude for not being customer centric. With that in mind, I'd like to tell you what happened with my recent dealings with Forum Credit Union.

I had a few questions about a loan I have through them, so I logged into the online banking to get my account number to call. While there, I noticed they had an online chat option, so I decided to check that out. The app ran surprisingly well, and I got someone right away. We worked though the question that prompted the visit, then she asked the classic "Is there anything else that I can help you with?"

"As a matter of fact, there is." I answered. I asked her what would be involved in setting up a checking account, because I was wanting to move my banking business away from Chase. She responded "I can do that for you right here. I just need you to accept these conditions. Agreeing in this chat is the same as doing it in writing." She then proceeded to paste a few paragraphs into the chat window.

That was all it took. She later asked if I wanted debit cards, so those are on the way now. It was by far the coolest experience I think I ever have had with banking. In contrast, most of the correspondence I've gotten from Chase was a small bit of actual content surrounded by auto-generated legalese and the typical "You are very important to us" nonsense. If I were so important, why is most of what you send generated by a computer?? :)

Anyhow, if anyone is looking for a financial institution that isn't going to screw you over (in service or financially), I would highly recommend Forum. They are quick, courteous, and well, they are a Credit Union. They weren't involved in the sub-prime shenanigans and have a decent financial position. Unlike Chase, I don't foresee Forum changing rates on anything to try to compensate for their bad decisions -- but I digress :).

Bottom line: Forum Credit Union = Awesome.

How Chase is Screwing Its Customers

I know times are a bit lean, especially if you are a financial institution. However, this doesn't give you the right to take it out on your customers in a somewhat captive market.

This story I have heard from multiple sources who come from every walk of life. Until it became my own, I wasn't aware of it. After things affected me and I started looking into the problem more, I became increasingly annoyed with those responsible.

Here's the deal. I've been a customer for chase for quite a few years. I've got a decent credit rating, always paid my bills on time, and brought quite a bit of business to Chase. I was a "responsible customer" as you might want to call it.

The financial crisis hit, and can be boiled down to irresponsible banks giving loans to irresponsible or ill-informed people who couldn't afford said loans. These handful of people completely crippled the financial system because so much was riding on the product they were failing to support.

Fast forward a couple months, and I get a notice in the mail from Chase stating they are changing the terms on my Credit Card. These types of things aren't really that big of a deal, but I actually decided to read this one a bit more closely. Even though I've been a good customer, a "responsible" customer, my interest rate was being changed from 6.5% fixed to 10.99% variable -- which in today's market puts it around 13%. So, for being responsible, I get "rewarded" with a 116% increase in my interest rate wheras those who have been irresponsible with their funds are getting handouts (bailed out) from the government. The interest rate I was moved to is higher than my first credit card I got when I was in HIGH SCHOOL working part time -- and had no credit history.

More stories I've heard range from adding monthly service fees to boosting interest rates even higher -- upwards of 22%. After some heated messages I finally got a reason -- "we needed to adjust our terms to make these products more profitable". So, due to their bad business decisions, those of us who did nothing wrong are being shouldered with carrying the company out of this mess.

As I noted in a previous post, I'm working on moving my business elsewhere. To reference the "captive market" comment above, in today's climate it is getting increasingly hard to find someone willing to take on a large chunk of unsecured debt i.e credit card balances. As soon as I can find somewhere I can move to, I am jumping ship and I hope that most of Chase's customers are in a position to do so.

I know you're hurting, but alienating your good customers is not the way to make it through unscathed. This is the same backward mentality that keeps certain parties from cutting taxes to stimulate the economy because they think it will cut into their tax revenue too much. Here's a news flash -- you put more money back into people's pockets they will spend it. The tax revenue collected from this spending would far outweigh the cost of giving people money back.

As the saying goes - "I'll promise to be nicer when you promise to be smarter". Here's to you Chase.