Consumer complaint received 2021-09-23
Company: INVESTORS BANK
State: NY
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Fee problem

Complaint:
Investors Bank officially acquired XXXX XXXX XXXX  in XXXX of XXXX. As part of the terms of the merger, Investors Bank  agreed to maintain a Service Appreciation Program ( A Program that allowed for Program members to maintain any checking account chosen by them to be hold permanently free of charge ) created by XXXX XXXX XXXX  for checking account holders who had the feature on the account at the time of the merger. Since then Investors BanXXXX  has removed the fee waiver from my account, modified the account type, and has continued to charge monthly fees without providing any sort of written notice of the discontinuance of the discount/promotion that was agreed in writing to be transferred to Investors  Bank  as part of the merger agreement. As no written notice was given, the bank is in violation of CFR subsection 1005.8 and 1005.7 ( b ), part i, which states : 12 CFR 1005.8 - Change in terms notice ; error resolution notice.

( 1 ) Prior notice required. A financial institution shall mail or deliver a written notice to the consumer, at least 21 days before the effective date, of any change in a term or condition required to be disclosed under 1005.7 ( b ) of this part if the change would result in : ( i ) Increased fees for the consumer ; Bank Terms from XXXX XXXX XXXX  and Investors Bank  : XXXX XXXX XXXX  -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- " Service Appreciation Program* At XXXX  XXXX XXXX  XXXX we appreciate the valuable contribution made to our community by our Veterans, Active Military Personnel , Police Officers, Firefighters and First Responders.

We salute their efforts with our special " Service Appreciation Program. '' We're proud to offer these heroes with a point premium above our annual percentage yields. This is a lifetime benefit which also includes free personal checking**.

*Our Service Appreciation Program is only available to U.S. Veterans, U.S . Active Duty Personnel, Police Officers, Firefighters and First Responders with proper identification of service. 1/4 point premium applies only to Personal Deposit Accounts and will be added to the standard current annual percentage yields offered at account opening and will apply for the life of the account. 

For Variable Interest Rate Accounts- the 1/4 point premium will be above the standard current annual percentage yields offered as annual percentage yields change. For Certificate of Deposit ( CD ) opened as part of this promotion, if Certificate of Deposit is renewed at maturity, the 1/4 point premium will be added to the annual percentage yield available on the Maturity Date. Minimum opening balance and balance to avoid service charges : Savings Accounts- {$1000.00} ; Money Market Accounts - {$2500.00}. Certificate of Deposits : {$1000.00}. Certificate of Deposits- early withdrawal penalty will be imposed for withdrawals prior to maturity. Fees may reduce earnings on an account. 

**FREE Checking Account applies only to XXXX  XXXX XXXX  Personal Checking Accounts for Veterans, Active Duty Military, police officers, firefighters and first responders only. No minimum balance requirement, no monthly service charge and no activity fee. Other fees may apply. To obtain the Service Appreciation Program offers, accounts must be opened by XX/XX/XXXX. Call a Customer Service Representative for all details. 

Investors Bank  -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Q. IF I CURRENTLY PARTICIPATE IN THE XXXX XXXX XX/XX/XXXXSERVICE APPRECIATION PROGRAM AS A U.S. VETERAN, U.S. ACTIVE DUTY PERSONNEL, POLICE OFFICER, FIREFIGHTER OR FIRST RESPONDER, WILL MY BENEFITS CONTINUE AFTER THE CHANGE TO INVESTORS BANK? 

A. The benefits of your existing account will remain the same at this time.

Company response to consumer: Closed with explanation