Bank fees can be pretty steep. Fear not; we will teach you how to deal with this annoyance. They are a terrible way to lose money and the frustration that it causes can be immense. Overdraft fees are perhaps the most common ones we think of, but there is a whole variety of different fees you might get hit for if you are not careful. My inspiration for this post was an experience that I had with Ally Bank. I noticed I had received a $10.00 fee for “Excessive Transactions”. This is the story of how I got it reversed.
I realized that the issue was likely related to multiple withdrawals I had going to a new financial institution within a short amount of time. Some people might accept the fee and move on. I chose not to. I can’t totally take credit for the bravado. I owe a great deal of gratitude to Ramit Sethi for opening my eyes to what is possible when you make a phone call and negotiate.
The call went as follows:
Calling the 800 number… hit zero to get an operator
Representative: Thank you for calling Ally, how may help you?
James: Hi, I noticed that I received an “Excessive Transaction Fee” on my savings account and was hoping you can tell me what that means.
Representative verifies I am who I say I am and asks for a couple minutes to review the account
Representative: An excessive transaction fee is applied when 6 transactions or more occur within a given cycle.
James: What’s my cycle?
Representative: Your cycle is the 10th of the month to the 10th of the month… so basically tomorrow.
James: Brutal… so in other words, I would have been fine tomorrow. I wasn’t aware of that policy and I’m doing business with a new financial organization where I could have lumped all the transactions into one had I been aware. I’ve never had anything like this happen before. Can we get that fee waived?
Representative: Please hold and I’ll check on that.
James: Absolutely, take your time.
I wait probably two minutes or so considering what my next line of negotiation would be if he said no. I was considering something along the lines of, “Well, it was an honest mistake and I’ve been a good customer for a long time. There is a lot of competition in online banking and I’d hate to have to close the account tonight over something as simple as an accidental fee…”
Representative: After reviewing your account, we can definitely get that fee waived for you.
James: Excellent!
I went on to ask some other questions about the policy. It turns out that the “excessive transaction fee” can be applied to transfers between my Ally savings and checking, as well as external transfers. I thanked him for his time and that was the end of the conversation.
This script can be used just as well for overdraft charges (I’ve done it), credit card fees, late payments on bills, and any other situation where you get an unexpected fee. With that said, realize that if you try to do this repeatedly with a particular institution then you will eventually get a “no”. The best defense to fees is to avoid them in the first place. Assuming you’re already doing that, then here are some tips that can help your success when fees unexpectedly occur:
- Know What You Want and What You’re Going to Say
Before you pick up the phone, think about the solution you want. Notice I said, “pick up the phone.” I know this is an alien concept for some. There is often an online chat option, so you might think you’re just going to use that. You can try that, but I think your success rate will be lower. When you’re on the phone you can use charisma, charm, and judge the tonality of the person you’re dealing with. You can’t do that over online chat. Trust me, no one is going to kill you over the phone. In fact, customer representatives are specifically paid to be nice and patient with you. It’s ok… just call and talk to a human being if that is an option. Think about what you’re going to ask for in advance and how you’re going to present your case.
- Be Polite
Are you angry? Probably. You just got charged for something where you didn’t derive a benefit of some kind. Anger is understandable, but it is a terrible place to start a negotiation. Cool off for a while if you need to. Meditate, go for a walk, or think happy thoughts. Do whatever you need to do in order to have a calm conversation with a representative who may or may not be receptive to your request. When you do call and ask for what you want, don’t be let down by an initial no. Try to nudge the representative towards what you want as much as you can. If it seems you are getting nowhere, then ask politely to speak to a supervisor or manager who might be able to make things happen. Always frame this as, “I understand you’re limited in what you can do, but I still really need to work this out” kind of demeanor.
- Be Willing to Walk Away
Depending on the situation, the nuclear option might be your trump card. If you have been with an institution for a long period of time with a good record then point that out to them. Never make outward threats. Instead, say that you would hate to take your business elsewhere, but you’re willing to do so if this can’t be worked out. Only use this method if you really are ok with moving on to another institution.
If you really want to go to war with a business who has wronged you, take your battle to social media. It’s amazing what a single tweet can do in terms of a customer service response. I once had a terrible stay at a hotel and wrote a very negative Yelp review. I tweeted it to the corporate account and within ten minutes I received a response from their headquarters. Within 24 hours I received correspondence from the property I stayed at and they made things right with me. That’s the power of social media. If you choose this method, remember that the rules about being polite apply equally to this medium.
Conclusion
Hopefully these tips help you avoid the massive amount of fees that the financial services industry charges its customers. As mentioned earlier, knowing the policies and avoiding the fees in the first place is the path of least resistance. If you have a bad track record, negotiation is going to be tougher. No matter what the circumstances, always take a shot at negotiating. Even if you fail, you got the opportunity to work on a critical skill that will benefit you in every aspect of your life. People don’t negotiate because they think it’s rude. It’s not! We’re conditioned to believe this as “rule followers” from the day we enter elementary school. Accepting a bad deal is never good and as a rule you should always fight back.
If you’re scared to negotiate, realize that you are the customer. Businesses rely on your patronage. Customer service representatives are employed to take care of you. Never feel bad about talking to them about an issue you are having. If they make you feel bad about it, then they are representing a business that is not worth doing business with. As a customer, you might not always be right, but you certainly have the right to be listened to. Make them listen!
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