This information was according to Their Customers and was gathered from The Penny Hoarder.
TheCFPBis a government organization that collects consumer complaints about financial institutions.The Penny Hoarder teamtook a deep dive into the database to determine which banks are making their customers happy - and which are not.
How We Ranked the Worst-Rated Banks in America
To rank banks, we considered the total number of customer complaints, the number of complaints per $1 billion deposited, the percentage of unresolved complaints, and the Better Business Bureau grade.
The 10 Worst-Rated Banks in America
The most popular banks in the U.S. are regional banks like Truist Financial, TD Bank and First National of Omaha. The worst banks are Wells Fargo and Citibank.
1: Wells Fargo
Wells Fargo is the worst bank overall, with a high percentage of unresolved complaints and loss of Better Business Bureau accreditation.
2: Citibank
Citibank has a string of high-profile cases involving operational chaos and regulatory fines.
3: Bank of America
Bank of America has the most complaints overall, but is also facing $250 million in fines over alleged double-dipping schemes.
5: Discover
Discover is a credit card company that also provides banking services. It receives top marks for resolving consumer concerns quickly.
6: Citizens Bank
Citizens Bank was alleged to have failed to manage credit disputes and refund finance charges and fees, and had its BBB rating downgraded.
7: Flagstar Bank
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Flagstar Bancorp, one of the largest U.S. residential mortgage servicers, has an unrated status with the Better Business Bureau and may have a rocky road ahead.
8: Fifth Third Bank
Fifth Third Bank is a large consumer bank with concerns over delays in processing deposits and unresponsive customer service.
What Makes These the Worst Banks?
When shopping for a bank, review the features and look into customer reviews, ratings and complaints. How a bank handles difficult and unusual issues could make all the difference.
AS I WAS WRITING THIS ARTICLE TWO MORE IMPORTANT PIECES OF INFORMATION REGARDING BANKS EMERGED
Over the weekend Wells Fargo had customers seeing their deposits disappear from their accounts. They claim that the glitch has been resolved, but how scary is that? This after in May, Wells Fargo agreed to pay $1 billion to settle a class-action lawsuit that claimed the bank had defrauded investors by misrepresenting the progress it had made in fixing problems in the aftermath of a major fraud case. The scandal included bankers’ opening millions of customer accounts without their knowledge to meet steep sales goals from 2002 to 2016. WOW!!
The second incidents collectively were the closing of three banks in 2023.
Together they had approximately $500 million in deposits at the time of closure.
It Is Important to Choose a Bank That Fits Your Needs and Protects Your Assets.
When choosing a bank, consider what you need, read online reviews and ratings, and ask family and friends for their personal experiences with institutions you're considering. Compare interest rates and fees, and look for an account with low fees and high APY interest.
In Conclusion, the information provided by The Penny Hoarder, based on data collected by the Consumer Financial Protection Bureau (CFPB), sheds light on the best and worst banks in America according to their customers. The ranking was determined by considering various factors, including the total number of customer complaints, complaints per $1 billion deposited, the percentage of unresolved complaints, and the Better Business Bureau grade.
The results reveal that regional banks like Truist Financial, TD Bank, and First National of Omaha are among the most popular and generally well-regarded by their customers. On the other hand, Wells Fargo and Citibank emerged as the two worst-rated banks overall, with high percentages of unresolved complaints and issues such as operational chaos and regulatory fines.
Bank of America, despite having the highest number of overall complaints, is also facing significant fines over alleged double-dipping schemes. Discover, while primarily a credit card company, received positive marks for quickly resolving consumer concerns. Citizens Bank faced allegations of mismanagement in credit disputes and finance charge refunds, leading to a downgrade in their Better Business Bureau rating. Flagstar Bank, one of the largest U.S. residential mortgage servicers, received an unrated status from the Better Business Bureau, indicating potential challenges ahead. Fifth Third Bank, a large consumer bank, faced concerns related to delays in processing deposits and unresponsive customer service.
When considering a bank, it is essential for consumers to review features, read online reviews and ratings, and seek personal experiences from family and friends. How a bank handles difficult and unusual issues can be crucial in ensuring a positive banking experience. Ultimately, individuals should compare interest rates and fees, aiming to find an account that offers low fees and competitive APY interest.
Make an informed decision that aligns with your specific needs and preferences when selecting a bank. Your financial well-being relies on a reliable and customer-focused institution that can meet your requirements and provide a seamless banking experience.
