I don’t know too many people who love their bank, but I do think most people would agree that some institutions are definitely worse than others.
And yeah, Bank of America doesn’t usually get a lot of love.
OP is experienced in the mortgage and banking arena, and so he knew exactly how much money he would be giving B of A – who he did not like at all – when they bought the servicing rights to his loan.
A bit of context: I’ve been in the mortgage and related businesses for over 30 years. I know it very well. I’ve never like Bank of America especially their servicing division. This story happened a few years ago.
I refinanced my mortgage through a mortgage broker and, to my aggravation, they sold the servicing rights to Bank of America (the entity that owns your lown is usally different than one that you pay to service the loan). I was miffed. I estimated that a Bank of America paid ~$5k to service my loan as most folks at the time expect loans to stay on the books at least three years.
Another little fact: Mortgage services are paid 0.25% (fixed)-0.375% (Adjustable) of your outstand loan balance per year (it comes out of the interest you pay to the bank.
If you want to know how much you servicer got any particular month using the formula ServicePay = Current Loan Balance * (0.25%/12) )
When he saw they were going to start charging a fee for online payments, he decided to take matters into his own hands.
About two months after the servicing switched, BoA announced they’d be charging a $5 fee for the convenience to pay the mortgage online.
Truly an unwarranted money grab.
He paid his mortgage (plus a little) in change for two months, angering bank managers and creating general havoc, but finally getting his way.
I’m blessed that I can put a little extra towards my mortgage payment every month. So the following month, I took out my mortgage payment plus $400 in quarter from my local bank. I then went to my local Bank of America branch, and handed them my mortgage payment in quarters and repayment stub. I asked for a receipt of payment. I over paid my mortgage to reduce the current balance and thereby reducing Bank of America’s fees.
The nice branch manager said you can write a check you don’t have to pay in coins. I said I could but I would charge a $9.5 convencie fee for the stamp, my check and ink used. The branch manager actually laughed and said ok. They counted the money and I got my receipt.
Next month the charge was still there, so I went to another local Bank of America Branch which had gotten bad reviews on Yelp due to a hostile bank manager. I did the same thing. The Branch manager said “Write a check. We don’t accept quarters”. I said shall I call the local state’s Banking Commissioner, the Consumer Financial Protection Board, and the Office of the Comptroller of the Currency (US Top bank regulator) and say you won’t accept legal tender? I asked to talk to the district manager. I was making a stink. After about 20 minutes, he grudgingly had the staff count the quarters and I got a reciept. I told the manager that I would be bringing dimes next time.
The next month I brought dimes. He accepted them but glared at me the whole time.
After that payment, Bank of America rescinded their convenience fee.
As soon as possible, he refinanced and took the service of his loan elsewhere, depriving them of thousands as they had expected to have it for at least three years.
The month after that I refinanced my mortgage at a lower rate. Bank of America only got roughly 6 months of fees for servicing they expected to last 3 years at minimum. Five years to be profitable.
One of my proudest malicious compliance moments.
Is Reddit giving him high fives? Let’s see!
The top comment is wondering whether or not this is technically legal (the fees, not the revenge).
Image Credit: Reddit
But this person says yes it is, as long as they give you another option.
Image Credit: Reddit
This commenter is confused, but likes the sound of it anyway.
Image Credit: Reddit
Banks do not understand irony.
Image Credit: Reddit
Be careful what you sign, I guess.
Image Credit: Reddit
Score one for the little guys.
I think we can all get on board with that.