Virtual Bank, its holding company Lydian Bank aka Sabadell United Bank failed, it's in FDIC receivership. Listen to how they treat loan customers with 9 years of flawless payment history: The loan subordination department just told our refinance mortgage broker (Bank of America) to not contact them again. After over 100 days and four drafts of subordination requests (per Virtual Bank's revision requests) with the same title company, they're refusing to subordinate a home equity line of credit so that the borrower may refinance their first mortgage. The 1st mortgage rate would drop in half and they are treating their customer horribly. Their behavior is nearing tortoise interference and the FDIC Ombudsman's office is being notified.
I first signed up with Virtualbank in 1999. I simply loved them. And I continued to love them for 12 years. I even got a family member to sign up with them and she loved them too. In 2012 they were bought by Sabadell. In mid 2012, they relaunched their website. Here are the issues I experienced.
1) During the switchover all of my transaction history was entirely deleted. Online access to my transactions IS THE WHOLE REASON I HAVE A VIRTUAL BANK!
2) During the switchover, all of my automatic payments stopped being, well, automatic. Again, why do I have a virtual bank account if I have to remember to send checks? Through sheer luck, I caught this error in time to prevent serious tardiness with my automatic payments.
3) I began receiving a PAPER statement for my overdraft line of credit despite the fact that my preferences state that I should be receiving electronic statements for everything. Again, the whole point of a virtual bank is to avoid paper statements!
4) Said line of credit account is a complete phantom. I have no access to this account online. Seemingly, the only evidence that it exists is.....a paper statement. Did I mention that the whole point of a virtual bank is that I have online access to everything?
5) Even the electronic statements that I WAS receiving were not complete. They only reflected my checking account, not my money market account. I had to email them to request regeneration of correct statements. One more time, WHAT IS THE POINT OF A VIRTUAL BANK ACCOUNT IF I DON'T HAVE ONLINE ACCESS TO EVERYTHING?
I did incur one $5 late fee when my bill payments stopped being automatic. I contacted them about this (and mentioned the above issues as well). Their response: "Please send a copy of the statement showing the late charge." 12 loyal years, then 6 months of hell only to bust my balls over 5 bucks. The appropriate response here would have been "Sorry for the $5 fee and the inconvenience. Here's $500 for your time and patience"
They originally got my money by offering $30 if i put in $100. So I did. Years ago. Now all of it is gone because of some maintenance fee the implemented in Feb 2013. They said they sent an email, I never got it and i have been using it for the last 10 plus years. They said they sent me a letter by snail mail as well. Never got it. They said if i would have been using my online banking to check it I would have seen what was happening. Well the last time i checked in April there was no change from when i checked 6 months before. It's a money market account you put $$ in and then forget about it. Don't fall for their scam. They have just figured out a way to rob you of your money legally. I can't believe banks can treat customers this way after our tax dollars bailed them out.
More than 36 months inactive
|Non-Sufficient Fund (Overdraft)||$25||$30|
|Stop Payment item||$25||$27|
|Domestic Wire Transfer (Outbound)||$20||$22|
|Domestic Wire Transfer (Inbound)||$0||$9|