The Land of the Fee

Just got off the phone after a very angsty phone conversation with my bank. Backstory: 18 months ago started a teeny, tiny business in an effort to supplement my social security. Anything we've made has gone right back into the business account, which has never been huge. With the economy the way it is, customers are scarce; they like our work, but aren't buying right now. And a couple of customers are apparently not planning to pay for the work we did for them, not returning calls or emails.

So I get a letter from the bank telling me there is a new requirement for businesses that take credit card transactions and it will cost an annual fee ($55) starting this month, deducted automatically from the account. I'm already cancelling the AmEx as it's not part of the original contract and I don't need to be paying their fee every month. But if I want to cancel the rest of the service it will cost nearly $300 because I'm only halfway through the three-year contract; so I'm stuck paying a monthly fee for something that isn't getting used at this time. I've already called the company that hosts our website and they're more than willing to take a smaller monthly fee; now I don't know if I'll be able to pay them at all this month with the new 'surprise fee' being taken out of my account.

Ironic that I've been putting considerable effort into getting this thing going. And I do understand that most new businesses don't start showing a profit for a year or two, so I'm not surprised that I've not yet gotten a paycheck from the business. But I'm now in the bizarre position of having to use part of my SS check toward keeping the bank account active because we don't have the money to pay the $300 penalty for shutting it down. I am soooo not happy right now.

Thanks for letting me bitch.


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which is kinda why all this is disappointing. Small as we are, we do refer people to local businesses on a regular basis, trying to help rebuild our local economy. In the last couple of months we did some work for a new business and recommended this bank; he opened an account there. So, yeah, it feels like being dissed.

Perhaps the contract itself gives them the right to do that, but if it doesn't say so explicitly you might have a loophole.

IANAL and all that -- but it's worth checking out.

that the procedure is being implemented industry-wide. By the way, she just sent me an email: she was able to put the credit card stuff into 'inactive' status until spring, so for four months we'll have no fees. But still have to pay the new thing.

We'll take a close look at our contract, thanks for that suggestion.

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A local bank will probably treat you better than a bigger bank. Close the account and arrange a payment plan with them for the $300 penalty. Then go some place else that actually values its small business, local customers.

On edit: I see this is a small, local bank. :( Banks are evil, that's all there is to it.

I don't have any useful "advice" for you... just an acknowledgement of your frustration and the injury of losing more than you had gained.

If Obama doesn't do more to help small business, he is going to lose support!