U.S. Bank showing growth in 2010


Posted Mon, Mar 1, 2010

DENVER – In light of the U.S. recovering from the 2008-2009 financial crisis, financial institutions are still trying to fix problems and entice new customers.

One such institution is U.S. Bank, owned by US Bancorp, which repaid TARP (Troubled Asset Relief Program) last year, a step President and CEO
Richard Davis said was a “significant step forward,” as the bank posted a $602 million net income in the fourth quarter of 2009.

As a result, U.S. Bank surpassed four of  the country’s largest banks in customer satisfaction, expectations and customer loyalty, with a score of 77 in overall ACSI survey U.S. Bank officials on Feb. 16, 2010.

 The next highest bank received a score of 73, the industry average was a 75 point rating.

The American Customer Satisfaction Index is a national indicator of customer evaluations of product quality and services.

With President Obama’s Credit Card Accountability, Responsibility and Disclosure going into effect Monday, U.S. Bank announced plans to expand in 2010, with reformation to bank fees, new business features and a new savings feature for customers.

The most prominently advertised is the S.T.A.R.T. program, or Savings Today, Rewards Tomorrow program.

S.T.A.R.T. incentives customers to save by offering automatic money transfers, $50 gift cards for meeting financial goals, and maintaining that goal for one year, is the highlight of America Saves week (Feb. 21-28).

The nationwide campaign is sponsored by several governmental and corporate groups and helps individuals and families build their wealth by saving money.

But it’s not all-smooth sailing for the nations fifth largest bank.  Dow Jones reported U.S. Bank’s commercial and industrial loans fell $1.7
billion as of Feb. 10, following a $2.9 decrease the previous week.

Along with loan decreases customer complaints about overdraft fees are rising.

Larita Howard, a U.S. Bank employee and customer is one of dozens calling the current fee rates ridiculous.

Howard had money deposited through an ATM and directly into her account, and was charged $37.50 for later overdrawing her account by one cent she said.

“I checked my balance online and it showed I had more money in my account than I withdrew,” Howard said. “Then because a transaction cleared later that night they charged me, even though I went in the next day and deposited cash.”

The incident prompted Howard to consider closing her checking account, she said.

U.S. Bank reported it would eliminate fees for customers who overdrew their account less than $10, in 2010.

The fee change would also add “opt-out” choices, which would decline a debit card transaction if the customer had insufficient funds in their checking account.

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