|
My wife and I had been long time customers at the Royal Bank of Canada, somewhere between 15 and 20 years, and had a mortgage, chequing and savings accounts, line of credit and a credit card with them. Time comes up for mortgage renewal, and we're prepared to sign up for another 5 years, on a balance of ~ $140,000. We negotiate and agree on a very competitive interest rate and are getting ready to sign the papers when we're informed of the $250 administrative fee to process the mortgage paperwork. Now, having a friend as a bank manager, I knew that the admin fee is gets waived all the time, especially for existing customers, so I casually mention that we want the $250 fee waived.
"Oh no, sir. I'm afraid we can't do that. We've got orders from head office not to waive any fees"
Hmm. So, I warn them that it's not really the amount, but the principle, and by not waiving the fee, they're going to cause me to shop around. I mean, we're renewing with them. It's not like we're brand new customers with no history.
So, we go away, and get a phone call the next day that they're prepared to cut the fee in half, down to $125.
"That's the best you can do?" I ask.
"Yes, sir."
Later that day, we walked into the Bank of Montreal. Asked them if they wanted us as a new customer, met with the Asst. Manager, and got the same terms on a mortgage, a chequing and a savings account, a credit card, and a secured line of credit - all without any administration fees.
When RBC called the next day to follow up, we told them we'd be in to close our accounts at the end of the month.
"How about if we give you free banking for a year?" they asked. Too little, too late.
The lost out on tens of thousands of dollars in interest, for a measly $125.
Sometimes, I think banks make money in spite of themselves.
Sid
|