posted on September 29, 2000 04:25:55 AM
Oh well, it was nice for the grand whole 5 months it existed! Got this sweet email this am:
Dear XFinance Customer:
Thank you for using the X.com Website, which currently provides you access
to banking products from First Western National Bank (the "Bank" and
investment products offered by the X.com Funds. Since its launch, the
success of the X.com website has been tremendous, in part, due to the many
customers who use the X.com website for their banking, investment, and
electronic payment needs.
Upon review of the various programs through the X.com Website, X.com and the
providers of financial services through the X.com website are implementing
certain changes that could affect your account. For example, effective
today, the Bank is eliminating all overdraft lines of credit. Customers with
outstanding balances can continue to pay down their outstanding balance, in
accordance with the Overdraft Agreement; however, no Bank customers through
X.com will be able to borrow additional funds against their overdraft line
of credit. Please plan your check writing and debit card activity
accordingly. As a reminder, you can deposit money into your checking
account two ways: electronic funds transfer or by mailing a check.
**
As you know, X.com and PayPal merged companies a few months back. As a
result of this merger, we have realized incredible account growth as a
combined company, especially in our PayPal e-payments service. We encourage
all XFinance customers to consider opening a PayPal account (if you haven't
done so already) and take advantage of all the features PayPal has to offer.
We will be sure to keep you informed of any additional news or
announcements. To enhance your person-to-person payments, check out the
PayPal system through
posted on September 29, 2000 05:09:37 AM
I suppose when your local bank changes the TOS on your checking account they give you several weeks notice?
Or perhaps they even call you to ask if the changes are okay with you?
GAL
This is just another PP #*!@ thread.
posted on September 29, 2000 05:24:23 AMcapotasto: YIKES! Sorry I struck a nerve! I happen to appreciate X.Com & PayPal -- just not quite as much as I did 2 mos ago.
I thought this email would be of interest to everyone -- large changes happening at X&PP and these changes seem to be lightening fast! EXAMPLE About 3 mos ago, X decreased the overdraft by 50% -- however, they gave about 1 month notice.
Todays email MAY or MAY NOT be significant -- however, I did think it worthy for discussion!
posted on September 29, 2000 05:32:25 AM
Overdraft protection wasn't something I wanted. When that has been an option on any bank account I've declined it. Banks don't exactly offer it out of the goodness of their heart, most interest rates on overdraft protection are obscene.
posted on September 29, 2000 05:37:28 AMuaru: I agree! It is still interesting -- something is going on at X&PP. When I opened my account, they automatically gave me a $500 line. Then, about 2 mos later, all lines were reduced by 50% -- but there was a warning! Today's move seemed a bit abrupt!
My point is that although I like X&PP, I wish they would settle down!
posted on September 29, 2000 06:01:59 AM
tomwii
Thank you for sharing this. Although I've been an x.com customer since very early this year, I haven't received this e-mail.
That's one of the best advantages of this board -- finding out changes in terms before the companies themselves get around to sending me the notice!
posted on September 29, 2000 06:12:19 AM
I received the email this morning as well. Personally, I think anyone who relies on overdraft protection is asking for trouble. It's no great loss, in my viewpoint.
posted on September 29, 2000 06:13:56 AMvargas: Thanks -- I thought some would be interested in this as I'm sure some or many people have probably not been notified, if past experience is any indication!
posted on September 29, 2000 07:00:56 AM
I agree that dropping overdraft protection is not in itself a big loss... but I'm astonished at X.Com/PayPal's timing! Just when they seemed to have a lock on the auction payment market, they start taking steps that make BillPoint and other systems more attractive!!! Are they CRAZY???
So, let me guess that the valuable X.Com services are the next to go, and that pretty soon we'll discover monthly checking service fees, elimination of ATM charge rebates, and who knows what else?
posted on September 29, 2000 07:54:14 AM
Thanks for the info, tomwiii. And yes, capotasto, my bank does give me at least 30 days' notice before changing any of the features of my accounts.
Does make you wonder what else they might change with no notice!
posted on September 29, 2000 08:00:15 AM
I fear elimination of x.com may be next....since it provides all of business paypal's benefits with no fees, and X.com is FDIC insured. We may soon get aemail saying X.com will no longer be in the online banking business and all account holders will be mailed a check for the balance in their account.
CD's are gone from X.com too....and there was never any notice about that either.
posted on September 29, 2000 08:00:50 AM
Does anyone else believe that these abrupt changes are a sign of serious financial trouble?
I am now withdrawing all Paypal funds immediately upon receipt. I'm just not confident that they will still be solvent by the time the daily sweep rolls around.
----------------------------------------------------------------------
All rights reserved. All wrongs reversed.
I don't think that these are a sign of financial trouble, but rather X.COM wants push business Paypal. But the old x.com bank accounts compete with business Paypal, with no fees, so X naturally wants to subtlely and gradually phase out X.com services. (if what they're doing can be called subtle and gradual.)
The funny thing is that people originally signed up for Paypal because it was simple and it didn't include a lot crap people didn't need unlike x.com--debit cards, overdraft protection, checks, social security numbers...but now paypal is being transformed into the reason why more people didn't sign up for x.com originally.
posted on September 29, 2000 08:25:50 AMlabbie1"FDIC Banks have to give 30 days notice to customers before implementing changes."
Well since X.com (First Western National Bank) is a FDIC insured bank either you're wrong or they've violated the law.
I'm curious, is there anyone here that was actually using X.com's overdraft protection?
The sky is falling, the sky is falling!!!
To someone in the banking industry, I pose this question. Would a bank that was about to accept international accounts want to have over-draft protection for its customers?
posted on September 29, 2000 08:32:57 AMuaru All I can tell you is that when my Credit Union, when I lived in another state, changed their TOS without notice, I fired them.
When I investigated, I found out that banking regs require banks to give 30 days notice on changes while Credit Unions and other financial operations were not under that same law. This was in 1993 or 1994. It could be different now...
posted on September 29, 2000 08:35:09 AM
I'm no banking expert, but I do know that an FDIC insured bank is required to maintain certain deposit to loan ratios. I seem to recall that was the reason they gave for reducing the overdraft protection a few months ago. This may or may not have something to do with the current situation.
posted on September 29, 2000 08:42:32 AM
uaru-I am guilty of using the overdraft. I recieved a letter in snail mail yesterday saying to pay bal. of $22.49 asap, in the form of money order or cashiers check only. I guess I better, I don't need this going to collections.
And I got this in the mail, this before any emails (of which I didn't get)
labbie1-OT-thanks for the compliment on the ornaments, couldn't thank you yesterday, that thread got locked!
posted on September 29, 2000 08:42:59 AM
When I read that EMAIL from X.com this morning, I was shocked. No warning at all? My regular bank sends me notices in the mail, as do the credit card companies, to notify me in advance that something is going to change.
I have never used the Overdraft at X.com, but I must admit I thought it was nice to have that, just in case. If for some reason I goofed and wrote a check for 20 cents over my balance (wouldn't happen, but could), then I know I won't be charged $20 by the other person's bank, and another $20 from x.com. X.com would just pay the check and I would have to re-pay the 20 cents. They don't charge a fee for the overdraft, and the interest rate was pretty low if I recall correctly.
Yeah, I don't plan on the first parachute not working, so you can just take out that emergency 'chute. Why would anybody mind a little change like that?
The above links to the FDIC regulation on "Subsequent Disclosure Requirements". Section (c) (1) Change in terms. Written notice required is followed by section (c)(2) Notice not required which says "No notice is required when the change involves ... suspension of future credit privileges or termination of an account or plan".
So, while FDIC insured institutions are required to provide advance notice for many types of changes, elimination of (unused) overdraft lines of credit doesn't appear to be one of them.
posted on September 29, 2000 09:13:30 AMJSmith99 Thanks for the clarification.
I guess this was the difference in my situation before. That involved fees that they intended to implement while this involves suspension of credit. Nice to know.
posted on September 29, 2000 12:21:44 PM
Yeah this ticked me off. I have used it in the past, and paid it back (with interest, thanksverymuch!) so it's not like they were losing money on me. I don't see anything WRONG with, if you know it's there, like I did, and know how much it is, writing a check for $25 on your x.com acct. when you only have $20 in savings and counting on the overdraft amount to cover it. That's why the 'no notice' thing made me mad... what if I'd done JUST THAT before reading my email?
Another thing: since they bothered to mail us about the reduction in the line of credit, I think that the same courtesy could have been extended this time around. Just a matter of treating customers in a courteous manner, once again. Okay, so they aren't BOUND TO BY LAW but so??
One more thing: I didn't get any email demanding payment on my ovedraft protection outstanding balance like someone else says they did. I'm a bit concerned that my next deposit (which I electronically transferred from my credit union yesterday) so I could write a check on my x.com account might be "taken" for the OD protection instead? That would also tick me off.
Spend a lot of time ticked off at X.com/PP lately! <sigh>
and
