American Online Banks

by William Edstrom

Ever get that feeling about online banks of what if there’s a problem? There’s no branch to go to. Where are their offices, is access to their offices even possible?

But, what could go wrong? They block your access to your money in your account. Or worse.

CIT Bank, an online bank, recently did a “technical upgrade” to their system. I’ve been locked out of my savings account ever since. In effect, the CIT Bank people stole my savings. By blocking my access to my money, my savings, the CIT Bank people have, in effect, robbed my money.

So, how did CIT Bank do it? How does CIT Bank steal money from people? How can online banks steal your life savings from you? It’s so easy.

After the CIT Bank “technical upgrade” in June 2016, CIT Bank declared that it was necessary to do a one time security check involving getting a secret bank code (a 5-digit number) text messaged to your phone number that they have on record. I changed my address and phone in 2015 and updated this information in my online banking settings.

Unsigned email responses from CIT Bank claim that they didn’t get the updated address and phone number.

And that there is only one person at CIT Bank who can assist in such situations, Rafael Ramirez. RR for short. RR is not that good with numbers. He incorrectly entered my new phone number the first time I gave it to him.

The second phone call disconnected after a couple minutes. I mentioned this when I called CIT Bank a third time. RR seemed delighted as he insisted that he didn’t hang up. The call just “magically disconnected.”

Then, the next phone call. RR got the number correct that time after I repeated the number several times. Since RR is not good with numbers, as I discovered during the first phone conversation, I repeated my phone number slowly and as clearly as possible. RR complained that it was “not necessary” to repeat the number slowly and clearly. Obviously, after the first phone call, it was necessary.

I asked why this all can’t be done online. A major reason I opened an online bank account was (no doubt) not for the added security, it was for the convenience of not having to ever schlep out to a branch, not having to linger on the phone with some overly chatty overly cheerful bank “customer service” rep reciting scripts from a teleprompter. Not having to call again and again. And again.

Next up, on the computer screen, came ‘click here for a phone call or click here for a text message.’ I chose the latter. (I thought about older people who don’t have or can’t afford a cell phone, what happened to their life savings at CIT Bank.) An error message appeared on the computer screen that my phone number is not the number they have on record.

Then I clicked on the ‘get a phone call from CIT Bank’ option. Then, a 5-digit number appeared on the computer screen with a message that CIT Bank would call (a robo call?) and I would need to enter that secret 5-digit number. After close to an hour, no call, I clicked on ‘I didn’t get a phone call from CIT Bank.’ Then came the message to call a toll free number that doesn’t work.

I tried, so far, 14 times to call back RR to find out what to do next to regain access to my online bank account. RR has caller id. No matter when I call, 930AM, 1030AM, 1130AM, 130PM, 230PM, 330PM, 430PM - RR does not answer the phone. Lights are on, but no one’s home.

I have online messaged and emailed dozens of times since June 2016 repeatedly mentioning the problem in detail and asked many times for contact info for someone other than RR who appears to be having so much fun - as in R R R R laugh out loud fun - at my expense. So far, months later, the only responses I’ve gotten have been RR is the only person who can “grant” you access to your money in your bank account again.

At brick and mortar branches, there may be exasperating moments from time to time, anyone over 21 can tell you about, but at least you get to see who the bank people are. Who are the people at the online banks? When I call CIT Bank I get asked a barrage of questions (e.g. name, date of birth, social, mother’s maiden name, address, complete address including zip, favorite teacher, first concert, name of the street I grew up on, favorite color, etc. etc.) to remind me that the online bank people know so much about me, but what do I know about them. It’s a subtle way of intimidating people, letting customers know who has the upper hand, who has the power to seize your money, your savings, if they wish to seize - or block - your money in your account.

The online bank people - like so many insurance company people - won’t say much about themselves. They won’t even answer most of the questions that they ask you.

I didn’t lose my money in my CIT Bank online savings account due to some hacker or because of forgery. I lost my money in my online savings account at CIT Bank due to the people at CIT Bank denying me access to my money in my bank account. It’s been going on for more than 2 months now, with no end in sight. The bank people at CIT Bank have turned out to be a bigger threat to my money in the bank than hackers or forgers or bears.

It is the people at CIT Bank, simply by insisting that ‘RR and only RR can “grant” access to your online banking account again.’ Then, RR simply looking at his caller id and not answering his telephone, regardless of what time of day he’s called. Regardless of how many times RR is called.

Less passive aggressive, more malicious, what happens when someone at an online bank changes your password or one of the answers to your secret security questions. Good luck trying to ever get your money after that. As easy as it is for the nameless faceless people at online banks to change your password or security question answers, is to simply move the decimal point on your balance. Got $10,660 in an online bank? Just a couple of keystrokes and voila, your balance just became $10.66.

Forgot the answer to one of the secret bank security questions? R R R R R. Ha ha ha ha ha. Fat chance ever getting your money after that.

Bank regulators. Good luck jumping through hoops of fire and spending hundreds (or thousands) of hours of your life with bank regulator type people to try to get your money back.

I opened an online savings account years ago with CIT Bank. I felt queasy and uneasy, who are the CIT Bank people, how will they handle my account, is my money safe in an online bank account? My money is so safe with my online CIT Bank account that no one can access my money. Not even me!

If you have an online bank account, when is someone at your online bank going to do a “technical upgrade” that locks you out of your bank account. For months. Forever. When will some nameless faceless person at some online bank location (on some continent), change a letter in your password and one of your secret security answers as they laugh R R R R R ha ha ha ha ha.

At different times in people’s lives, people go to their savings, often for some important matter like some emergency medical expense, some urgent airline ticket, some rainy day. I’ve been trying for months now to get my money from my online CIT Bank account and the CIT Bank people seem to be so delighted with themselves at how annoying they can be (and for so long) in completely blocking my access to my money in my bank account. True story.

Some people say a better option is smaller savings banks or credit unions where it’s possible to get to know the people at branches. Where it’s possible to even become acquainted with the auditors, the computer people and some of the executives. Often with smaller community oriented banks, the people are actually your neighbors too in addition to being your bankers.

I say - with interest rates hovering around 1% and with the savings I’ve gotten scammed out of by CIT Bank - run and get your money out of such American online banks fast. Just stuff your money in your mattress, it’ll be a lot safer there.