Q: What happens when a mega-bank is late with a payment?
A: They receive a nice letter politely asking that they “use maximum discretion and effort” to meet their obligations.
Shame on Wells Fargo, Bank of America, Citibank, and JP Morgan Chase, who are reported to be sitting on $130 million worth of insurance payments due to victims of Superstorm Sandy. Imagine if the banks’ customers could respond to the mega-banks with the same late fees and compound interest that mega-banks demand of their customers who are late with payments far smaller than $130 million! It’s just one more reason to Break Up With Your Mega-Bank.
“Families need to be able to return to their homes and the state economy, which took a hit from Superstorm Sandy, needs the boost from spending on repairs,” Cuomo said in a written statement. “After insurance companies have sent homeowners checks to pay for repairs, the money should not be sitting with the bank because of red tape.”
The state’s Department of Financial Services found that four of the biggest U.S. banks — Wells Fargo, Bank of America, Citibank and JP Morgan Chase — are holding more than 4,100 checks worth more $130 million. The banks were not immediately available for comment, though have maintained that they were socked with a massive amount in payouts that require processing in the wake of the storm.