What They Really Meant
We’ve posted before on the differences between banks and credit unions, but I’d like to take that a step further. A really big difference that I’ve noticed between the two is that while they say the same kinds of things to their customers, they really mean different things. Let me translate some things you may hear your bank or credit union say.
1.) Yes, we’d love to have your business here!
What they really meant: Yes, we’d love to have all of your money and if you don’t have money, then we’d love to earn fee income off of you!
Let’s think about this. Banks are held accountable by their stockholders so they need to be making money. Someone bringing in large amounts of money from elsewhere has provided new money that the CFO can now use to lend out and earn even money for stockholders through interest. If the new customer doesn’t have money and isn’t very good at keeping up with their account, then the bank earns fee income from all of the fees that the customer is charged. Either way is a win/win for the bank.
2.) I’m sorry that you’re account is overdrawn, but unfortunately we’re cannot waive any fees unless it’s bank error.
What they really meant: I’m sorry that you’re account is overdrawn. I wish I could help you out but my boss is a bit of a tight wad and won’t give refunds unless it’s bank error.
Each branch has a specific amount of money budgeted each month for refunds and many of the managers don’t want employees arbitrarily handing out money. Don’t fret though. In most cases, the employee is hoping you’ll ask for the manager because they genuinely want to help you, but are limited in what they can do. So, if you ever find yourself in such a position, ask to speak to the manager. ***Tip*** If you’re super nice to the employee and the manager, you’ll usually get some refunds (unless this is a habit for you, in which case, they’re going to start telling you no).
3.) I’ll be glad to assist you with that transaction.
What they really meant: I’ll be glad to assist you with that transaction.
Surprise! I know you were expecting some ulterior message with this response, but employees are generally happy to do what they can to help their customers. Think about it, you may hate your bank, but there are usually one or two employees that keep you there, if for no other reason than you subconsciously enjoy seeing them when you go in. ***Note*** Be sure to show your appreciation of them if you can. They’re overworked and underpaid, so the gesture will make their day!
4.) We’re just going to ask you a few questions and get you pre-approved for this (insert lending product).
What they really meant: We’re going to run an application.
I’m not suggesting that all banks do this, nor do I think it’s the norm. However, if you should run across this situation, be very careful; especially if you’re not interested in what they’re pushing. I left a bank because my manager did this and asked me to run the application. When the customer was declined he was more than a little upset by the fact that we had run an application when he was under the impression it was just meant to be a pre-approval. Just be careful is all I’m saying.
5.) When an employee takes you out of the teller line and says they can help you with your transaction.
What they really meant: I’m sorry to take you out of line but my boss is making me do this so I can sell you something.
Nine times out of ten, they can’t process that transaction themselves. They have to take it to the tellers, leaving you waiting. What they want is to see if there is anything they can sell you. For one of the banks I worked for, this practice was enforced with write ups if we didn’t do it. The top salesperson in the country was superceding his goals by 75% or more every month and he attributed his success to this technique. I suppose it’s not without its merit if it’s done in the customer’s best interest, but my problem was that it wasn’t always to the benefit of the customer. We pulled random people out of line, how could we know what their situation was? Maybe we can’t help them because they have everything they need. Or maybe there’s a no solicitation note on their account (yes, you can do that). Now we’ve just made them mad because they were pulled out of line when all they wanted was to make a deposit or withdrawal.
6.) Sign here next to the ‘X’ and your new account is all set up.
What they really meant: You agree to all terms and conditions set forth by the bank, whether you know about them or not.
There are a lot of terms and conditions that go into an account with a bank. Most of the time you don’t really think about it until something happens that seems out of the ordinary. For example, a bank that posts items as they come in as opposed to all credits before debits on a given day. That can have a huge impact on your account. Or a bank that posts debits in order from largest to smallest. If you run out of money in the account before all of the debits are paid, it is frustrating to have items under $5 returned or to be charged a $30 fee for them. That’s why banks give you the rules and regulations pamphlet when you open your account. Realistically, they can’t go over everything with you so there is some responsibility for you to understand your account. However, once you sign the signature card, you are fully responsible and unfortunately “I wasn’t told that” doesn’t go very far.
So let’s play a game. You tell me what your bank told you and I’ll tell you what they really meant!
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Umm… where is your contrast between banks and credit unions?
Most financial institutions, whether bank or credit union, are going to say the same things. However, I’ve only worked for one credit union, so I can tell you what that particular credit union meant when they’ve said any of the above – which is simply what they said. I’ve worked for three of the major banks so I’m more qualified to tell you what they meant, which I did.
My experience from banking with credit unions and the employees of credit unions that I associate with is that credit unions tend to be upfront with their members. I believe the difference to be the members are owners of the credit union and have a big influence over what happens as opposed to a bank’s customers who usually don’t own stock and have no say in how things are ran.