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ING Direct Closed Customer’s Account Due to Bad Credit

This article was written by in Banking. 181 comments.


Is it discrimination to cancel a customer’s checking account for their bad credit? ING Direct has done so to Nick, who emailed me (and Consumerist) a complaint forwarded to the ING Direct ombudsman. ING Direct has closed his Electric Orange account, a checking account that earns 0.20% – 1.10% APY currently.

Evidently, ING Direct performs periodic account reviews and will close accounts from customers who may abuse their overdraft protection based on credit reports. Nick admitted he had been “living in” the $1,000 overdraft protection (more like a cash advance). That could have triggered the account review.

I must express that I am heartbroken!! Yes, I have credit that is less than desirable, but I do not feel that is a basis for your discriminatory actions. Your decision has left me heartbroken, and also feeling foolish for all the recommendations that I’ve made to people for ING Direct…

Also of note, I have received two letters from your company regarding making more than “six transfers” from my savings. After the first letter, I carefully planned my transactions in such a way that I would use 2-3 transactions on each of my savings accounts, after which point they would be used for deposit only. ING Direct does not to tell people that they count transfers among ALL the savings accounts for a customer number toward the six each month.

As someone who received a similar six-transfer-maximum letter, I am sure Nick is misinformed on this point. The limit is six per account, not per SSN, as confimed by an ING Direct customer service representative. Nick probably received a second letter after changing the withdrawals because these letters are delayed by at least a month.

But this issue is unrelated to the closing of the checking account. Was this done fairly? Continue reading for ING Direct’s initial notice and Nick’s full response.

This letter was sent from ING Direct to Nick.

Dear Nicholas,
Customer Number: XXXXXXXXXX

Based on your credit score, which was provided by a consumer-reporting agency, we have decided to close your account. We have reduced your Overdraft Line of Credit to zero ($0). We feel this action is in your best interest as well as ours.

Because we want to make sure you have time to manage the transition of your account, we will leave the deposit portion of your account open for the next 30 days. Please use that time to:

* Change any direct deposits you currently have scheduled for your Electric Orange.
* Update any bill payments that are currently set up for your Electric Orange.
* Repay any outstanding balance you might have on the Overdraft Line of Credit.
* Allow any pending transactions to clear.

After 30 days, you will not be able to use your Electric Orange – it will be restricted from all account activity. This means you will not be able to transfer funds in to or out of your Electric Orange or use your MasterCard(r) debit card.

Any account balance plus any interest earned on your Electric Orange will be transferred back to your external, linked checking account five business days later. However, if we know of transactions that have not cleared within those five days, we will wait to transfer funds until those transactions have been processed.

Please keep in mind, that while information from a consumer-reporting agency in whole or in part influenced our decision, the reporting agency did not make this decision and cannot provide information about it. However, if you have any specific questions regarding your credit report, you can contact that agency directly using the following information:

Equifax
Consumer Services
Atlanta, GA 30374-0241
1-800-685-1111
www.equifax.com

Under section 612 of the Fair Credit Reporting Act, you have a right to obtain a free copy of your credit information on file at the agency, if your request is made within 60 days of receiving this notice. Under Section 611 of the Act, you also have the right to dispute the accuracy or completeness of any information contained in that report.

Please note this does not affect any other accounts you may have with ING DIRECT. In addition, you are welcome to re-apply for another Electric Orange again in 30 days. If you have any questions, you can give us a call at 1-888-464-0727 from 8 AM to 8 PM any day of the week.

Thank you.

Here is Nick’s full response. Is it warranted?

When I first opened my ING Account, the rates, services and products were unlike anything I’d encountered in the banking world! The ING Direct website is fantastic, easy-to-use and VERY helpful. If one calls your call center, the representatives are always helpful, enthusiastic, and definitely one of the better customer service experiences out there. You deserve a great kudos
for that!

However, I have enclosed an email that I received yesterday, and I must express that I am heartbroken!! Yes, I have credit that is less than desirable, but I do not feel that is a basis for your discriminatory actions. Your decision has left me heartbroken, and also feeling foolish for all the reccomendations that I’ve made to people for ING Direct. You can bet that has ceased, and will be replaced with a stern warning for anyone considering opening any kind of account with your company. I have also re-advised people to whom I have reccommended ING Direct to in the past, as I wish no one to have to go through this terrible situation. I’ve also advised several finance ‘blogs as to ING Direct’s new practices, as they have spoken very highly of your company in the past.

Also of note, I have recieved two letters from your company regarding making more than “six transfers” from my savings. After the first letter, I carefully planned my transactions in such a way that I would use 2-3 transactions on each of my savings accounts, after which point they would be used for depost only. ING Direct does not to tell people that they count transfers among ALL the savings accounts for a customer number toward the six each month. This practice is misleading, and should be clarified in future letters sent out.

I have closed out my CD’s, and all but two accounts. I will eventually be closing all of my accounts, and using only my local Credit Union.

Thank you for your time, and I wish you the best of luck in the future.

I still hold a good portion of my cash at ING Direct, though in a few months I plan on simplifying my finances and reducing the number of banks I do business with.

Updated May 20, 2013 and originally published May 10, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 181 comments… read them below or add one }

avatar C

Nick,

Your comments about white and college-educated people are entirely inappropriate. Race and education has no part in this conversation. If anything, your comments show that you are irrational and are perhaps viewing your situation with ING in an unreasonable way.

ING has every right to close ANY account at ANY time for ANY reason. It is in the terms of service.

It seems that the customers who complained about horrible customer service experiences are the only people who have a legitimate complaint here. If the accounts of their experiences with ING are true (and I have no reason to assume they are not) then ING is clearly at fault. The story about trying to withdraw money after merging accounts is absolutely ridiculous. I would also encourage complaints to be filed and money to be taken elsewhere.

I want to go back to Nick – it outrages me that you would say something like you did. Drawing race and education level into the discussion – and then calling people privledged – reflects extremely poorly on your character. Many people who fit that description have never been “privledged” in their lives and some have probably come from harsher backgrounds and overcome more adversity than you.

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avatar Greg

It’s so obvious you either work for them or are part of thier organization… Listen you piece of work .. I just had an experience with them today and after reviewing many others including this poor gebtlemans case … Iam filing a class action suit against ing … And tell you why and I’m sure we will go to the honest court because the way they are running it is clearly discriminatory on another level .on the “new banking ” ethnic that caused so many to come out in outrage on the predatory banking policies..l they are not being preditors in the same way but ….banking is not only business it’s everyone’s life we all are part an economic system and the times come to end the government and policies for the “business” vs for the people …
And I hope that my suit will actually help to focus on a new banking agenda not run by private organizations or “reserves” but for and by a balanced government national bank where we all have rights it’s obvious giving our business to these opportunists allows them to utilize the governments guarantees to make the spread on interest … Enough no …it’s time that that interest and those guarantees work directly for us the people … Beyond credit unions or private parties ..l a national us social bank .. Yes I said “Social” … This power and this industry needs to change and we are not in 1776 anymore ..l today our rights have everything to do with the power of each individual and our individual assets … It’s not ok for some private party to manipulate for thier own whims and profits the personal value and quality of life this way and it’s clear in our day and age the “pursuit of happiness ” is in the hands of extreme profit centered opportunists vaguely interested in the quality of life of each individual … We are members of what we continue to refer to as the greatest nation in the world ..?.what to be slaves to profiteers and manipulates who can tell you after you’ve put “good faith” into thier business venture which uses our guarantees we the people .. To then disrespect an individual who put good faith even recommended it to friends …. Enough with the con men and abuse … And you see me as Greg but in my bloodline my grandfather went up a huge industry and won in the supreme court because of his fervor valor of not being bullied and. Eat up in the 1920′s his case has given benefits to people of that particular industry hence fourth …Enough is ENOUGH …thank you for your comment because you lot the fuse for this …I’m proposing and organizing a movement to install a national us bank by and for the people ..Where we can all have truly fair credit and you know what maybe we can pay all the debts with the interest these louse bankers are pocketing how about that ! …by the way I go to Harvard …and this IS happening kids …I’ll advise where you can sign up and join to support the movement .. Cheers

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avatar InspectorFox

Just checking to see if anyone ever tried to request an increase in the Overdraft limit from ING. I need more spending power :)

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avatar Destardi

Apparently, they no longer close accounts when your Overdraft line of credit is closed. I was told because of my credit rating (due to bankruptcy) they wanted to help me “save my money” so they closed out the Overdraft, and there is no problem with the account, or my debit card, and the account will not be closed.

I haven’t received any emails, etc stating this; I had to login to my account and notice the negative amount, with the Overdraft limit closed.

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avatar Divine

I have also had my overdraft changed from $250.00 to $.00. This happen today. I logged into my account yesterday and it was there. I was a little worried so I called up and was told they check my credit report periodically and that was the reason why. The agent did not say anything about my account was going to be closed. I have a savings account with ING as well. The agent was very nice. I don’t mind that they closed it I only used it once for $100.00 and it was placed back in 2 hours.

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avatar InspectorFox

My overdraft changed from $250 to $25… will be calling ING later today to see what’s the deal. My salary is direcltly being deposited to this checking account.

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avatar girlthree

I received an email today stating that my account was OD by $10.00. I went into my saving to transfer the funds and only then realized that my OD has gone from $1,000.00 to $25.00. Called and got the same response, they are trying to help me save money and letters went out last night. I told the agent that it would have been nice if I received the letter first.

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avatar Susan

All you need to do is fill out the request online to increase the line of credit. There is a credit check to do this though.

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avatar Yana

I was actually horrified when ING closed my account months ago, when they did it to thousands of people with bad credit reports. Of course, I went back to ING after they recanted a week later, though I waited about a month. That kinda traumatized me, because I like ING so much.I just checked my overdraft line. It is still there and the same amount as before. I have a bad credit report and am making no efforts to change it, as I do not use credit at all. If I can’t pay cash, I don’t get the thing. And I don’t deviate from that rule for a home or car, either. To me, it is not justified to do so, even though I do go without things. I would never use the overdraft line. Having bad credit is no biggie if one never intends to use credit, and it is protection from ID theft, which I already had happen in the late 90s. No way am I going to pay to clear that up. The credit bureaus ought to do something besides selling our info for marketing purposes, and then maybe consumers wouldn’t have to do work they should be doing and spend money to attempt to clear up ID theft issues.

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avatar Greg

Absolutely yana … Enough is enough I’m putting together a movement to establish a national bank for and by the people not like the us reserve awhile is a private entity you know the pursuit of happiness in this day and age has everything to do with the power of our wealth individually and collectively …god bless you :)

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avatar Dawnene

I too had a $1000 Overdraft line on my Orange account, I went to log into my account this morning and there was a message saying “you have no active accounts with ING, please contact customer service” I was mortified since I had over $7,000 in my checking and savings combined (NOT counting the $1,000 overdraft) I called and they said that was a “mistake” a “glitch” and that everything was fine. When I got home tonight, I have an email from ING stating that they have reduced my overdraft from $1000 to ZERO – I never used the overdraft, not even once. I’ve never been overdrawn and have auto deposit of my paycheck and regularly contribute funds to my savings. My credit score is bad, about 575. I hope this is not the beginning of the end of my relationship with ING, I am just sitting here stressed thinking that they removed the overdraft and now they are probably going to close the checking account. It states clearly on the information FAQ page for the Orange Accounts that the Overdraft line is a critical component to the account. So…unless they have changed their policy after the thousands of poor folks who had their accounts closed several months back, I’m pretty concerned that I’m going to need to find another bank.
Anyone have any more info on this?

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avatar Carl

ING Round TWO…

Enough of ING. Here we go again. I got my Over Draft Line of Credit ODLC reduced to ZERO today too. I used it just yesterday for the first time. This time they didn’t close the Orange Checking just the ODLC. Mistake or not ING has issues.

I am over it. NO MORE ING. E TRADE pays better interest than anyone on the net. E TRADE transfers your money faster than any other bank. Faster than HSBC, Capital ONE, WAMU and especially ING. Switch your savings to E TRADE.

The best online checking and best BILL PAY is Bank of America. Absolutely the best BILL PAY out there bar none. If you just want a paperless checking HSBC has one…but, what it the point. I don’t write many checks but there are times when you have to do so. Bank of America is the place to do checking with BILL PAY. E Trade is the place to save.

ING is saving me money because I will earn more interest at E Trade and I will not be paying interest on an ODLC that I did not ask for in the first place. ING can just go back to HOLLAND or where ever they came from. There customer service people are not so nice. And the last time they closed accounts and then reopened some When I called I asked if this was going to happen again….the Rep. said that my Orange checking and ODLC was good for now but that could change. Change has come and now I am gone.

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avatar Doobles

I was one of ING’s customers with bad credit who’s account was suppose to be closed.

I paid my Overdraft protection and my account online reads $0.00.

Seeing this forum is getting more active reminded me to contact ING tonight and ask why my account wasn’t closed.

They told me my account can’t be closed because I still have a negative balance.

I guess I owe $5.98 because of interest for using the Overdraft protection. I told them can you please change my balance to show this online? they said “No”.. I then asked them if they could send me a paper statement. They said “No”.. But they would take a telephone payment over the phone.

According to my account I paid the overdraft protection in full on August 28th.. But they tell me my interest continues to accumulate on the $5.98 I owe them. Even though my online account does not show this.

I am not too happy about this. For those who had accounts closed.. You might want to log in and check to see if your account is REALLY closed. You still might have accumulated a small interest even though your account does not show this.

What happened to this once great company?

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avatar Greg

They got bought by Capitol one …and enough is enough brother time for a national USA bank a new model for banking by and for the people and the management of the monetary system.. Which really isn’t our brother …
.if we made the interest that the banks make we would be able to wipe out the national debt …hang in thier

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avatar GELL

I have never used the OD protection from ING and never asked for it. I opened an EO account when it was first offered as I had an ING Direct savings that I didn’t use much. Anyway, I too received an e-mail stating my OD was being decreased to $25 – I don’t care as I never used it nor did I plan to use it. What bothers me is that they said they did a hard pull on my credit. What gives them the right to pull my credit – they didn’t when it was opened and I have never used it! I wrote them demanding an explanation. Really, that is all I care about; I actually want to close my ING accounts because they really aren’t all that convenient to use and their services are extremely limited compared to other banks.

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avatar Anon

I just had my overdraft of $250 eliminated. I was notified in an email that said it was because my credit score had dropped. So I rushed to check my report so see if my identity was stolen. My credit score is 784 and is better than 95% of people in the U.S. I don’t think I have ever used the overdraft feature. I called ING, and they basically said they don’t know what is going on and I should get a letter in the mail–which I expect will say the same thing as the email. Very strange.

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avatar Destardi

Here is the email “letter” I received:
Dear Josh,
Customer Number: XXXXXXX574

At ING DIRECT, we’re committed to helping our Customers save their money by offering great deals and industry leading security. We hope you’ve had a great experience with Electric Orange so far.

As you know, Electric Orange comes with an Overdraft Line of Credit that’s connected right to your account. Since you’ve opened your Electric Orange, we have learned, based on information we received from a consumer-reporting agency, that your credit score is lower than we accept for the overdraft feature. As a result, we have reduced your Electric Orange Overdraft Line of Credit to zero ($0) and no further advances will be permitted. You will receive a letter in the mail within the next few days explaining the decision. We feel this action is in your best interest.

IF YOU HAVE AN OUTSTANDING OVERDRAFT LINE OF CREDIT BALANCE:
Since your line of credit has been reduced to zero, the only spending power you have in your Electric Orange is your deposited balance over $0. Given that there is a balance owed on your Overdraft Line of Credit, any future payments or transactions made using your Electric Orange MasterCard® Debit Card or any withdrawals (including Bill Pay, Electric Checks, and paper checks) will not be processed until you make a deposit that satisfies your Overdraft Line of Credit balance and brings your deposit balance above $0. Once that happens, you will be able to resume all account activities.

To make a payment, you must make a deposit into your Electric Orange by following these steps:

Login to ingdirect.com
Select the “Transfer Money” tab
Transfer the minimum amount required from your external linked checking account or other ING DIRECT account to your Electric Orange
Please Note: Until a payment is made, be sure to adjust your bill payments (made through online Bill Pay or your Electric Orange Card) accordingly.

In addition, this does not affect any other accounts you have with ING DIRECT.

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avatar Doobles

784?? That sounds more like a Vantage score (which isn’t a true FICO score).. 784 FICO score would be better than 99.9% of the population.

If you have a 784 FICO congratulations.

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avatar Divine

Received this letter in an email today. My account is still active. Strange thing is I have not used the overdraft since the first time I used it in Aug and that was paid back in two hours. There was a glitch with my direct deposit. Unless this is a generic letter I can’t see how they feel I owe any money.

Dear,
Customer Number: XXXXXXX
At ING DIRECT, we’re committed to helping our Customers save their money by offering great deals and industry leading security. We hope you’ve had a great experience with Electric Orange so far.
As you know, Electric Orange comes with an Overdraft Line of Credit that’s connected right to your account. Since you’ve opened your Electric Orange, we have learned, based on information we received from a consumer-reporting agency, that your credit score is lower than we accept for the overdraft feature. As a result, we have reduced your Electric Orange Overdraft Line of Credit to zero ($0) and no further advances will be permitted. You will receive a letter in the mail within the next few days explaining the decision. We feel this action is in your best interest.
IF YOU HAVE AN OUTSTANDING OVERDRAFT LINE OF CREDIT BALANCE:
Since your line of credit has been reduced to zero, the only spending power you have in your Electric Orange is your deposited balance over $0. Given that there is a balance owed on your Overdraft Line of Credit, any future payments or transactions made using your Electric Orange MasterCard® Debit Card or any withdrawals (including Bill Pay, Electric Checks, and paper checks) will not be processed until you make a deposit that satisfies your Overdraft Line of Credit balance and brings your deposit balance above $0. Once that happens, you will be able to resume all account activities.
To make a payment, you must make a deposit into your Electric Orange by following these steps:
1. Login to ingdirect.com
2. Select the “Transfer Money” tab
3. Transfer the minimum amount required from your external linked checking account or other ING DIRECT account to your Electric Orange
Please Note: Until a payment is made, be sure to adjust your bill payments (made through online Bill Pay or your Electric Orange Card) accordingly.
In addition, this does not affect any other accounts you have with ING DIRECT.
Thanks

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avatar Beth

Based on current economic conditions ING Direct has reviewed all EO accts and made decisions on a case by case basis what is an acceptable risk for their bank and us ING Direct customers. It is unfortunate that this had to happen, but it is understandable. I am sure we do not want our bank to go down like Net Bank did. They are looking out for not only the bank, but us as customers.

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avatar Jesse

I just had my credit limit reduced from $1000 to $25. Most enfuriating for me was not the fact that I had such a reduction, but that they ran my credit! I just called to try and discuss this deception. I was unable to get someone that knew what they were talking about…After 4 years with the big Orange, I’m over it. My money is going to Emigrant!!

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avatar John

Mine line of credit was reduced to zero from 1000 also. I did use the overdraft several times, though not any more than $10 and only for one day at the most. And I have no credit history, but the email said my credit rating was not high enough.

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avatar InspectorFox

I think either ING is doing this intentionally to avoid risk or there is some technical glitch. I have my salary deposited directly into this checking account – i don’t understand how do they see me as a risk even though my credit score is in the 600s.

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avatar Carl

Beth…

ING is only looking out for ING…not the customer. ING needs to go under like NET Bank…that would make my day. I wish they could receive and email telling them their accounts were closed and their line of credit revoked based on nothing. Credit score my behind. They haven’t done any hard pull on credit. But, doing this twice to twice too much. ING isn’t about their customer. I’d understand if one had defaulted on the OLC. But lowering OLC limit is uncalled for. Once an account is established and in good standing there is no reason to lower or close unless there is a default. What if your Credit Card lowered your credit limit without notice and for no good reason. What if your home equity line was reduced without notice and without good cause. No this is not the way to treat customers, it is not the way to treat people and no it is not the way to do business. Burn ING Burn…..take your coffee, take your oranges and lion and get back across the pond…Americans do not need ING.

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avatar Ihatebanks

I logged into my EO account on Wednesday and saw that my OD LOC was $25 (it had been $250 since I opened the account). I have never had an overdraft and kept an average balance in the account of at least $1,500. I have had an Orange Savings acct since April 2006, and just recently purchased a $1,000 CD as well. There was no e-mail, no explanation. Then Thursday a.m. their ridiculous e-mail arrived, that they feel this action is in my best interest.

I think the way they handled this was absolutely horrible. We were completely insulted that 1) they would treat us like we were deadbeats when we have been rock solid customers and have never defaulted on our account, and 2) they would take this action before they sent out any communication about it. On a side note, I had 2 bill pay checks mysteriously go missing last month, it took over 3 weeks for them to finally arrive.

I have always been an avid fan of ING since I first opened my savings account and recommended them to many of my friends and family. No more. I will be shopping for another checking and savings account. Obviously having reliable customers who religiously direct deposit their money and use their products is not important to them. I wonder if it’s worth sending them a letter, but I’m afraid of getting “blacklisted” like the poster above. Goodbye ING, thanks for nothing.

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avatar Tammy

I agree. I thought I would NEVER be approved for their overdraft line. But I was and it was because they checked (my bad) credit and gave it to me. It was only $ 165 but it helped immensely, and it was a “line of credit” AND I had direct deposit every 2 weeks, so it was ALWAYS repaid – plus the small fees that they charged too. I finally thought- I was on my way to improving my credit score..which I have been working on for a year.

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avatar Doobles

I think it would be in the best interest of ING to get out of the checking account business.

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avatar Angry

Well – I just had this happen to me and I had no notice. I was sent and letter last week stating they were going to be pulling my overdraft after having my account since the day they starting offerring checking and my savings for three years. I also had direct payroll deposit which paid off any overdraft automatically every other Friday if needed. The letter also stated that I would still have continued use of all the other services ING offered and my checking account would remain open. Not the case. Today I went to pay for a co-pay at a doctors appointment and my card came up expired. Yeah – they closed it without telling me and now they are telling me it could take 2-3 weeks to get my money back. I am a single mom with two kids and ALL my money was in that account. They basically told me there was nothing they could do for me and I would have to wait for them to send me a check. They also told me they didn’t have to notify me about closing the account because it is in their fineprint that they can close accounts at any time and basically hold my money hostage!

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avatar Tammy

This was the reply I got from the Ombudsman today…
Generic reply – no doubt.

***We received your email and wanted to follow up with you to address your concerns. Electric Orange was designed as a self-service paperless checking account equipped with an Overdraft Line of Credit. The Overdraft Line of Credit was designed to assist our Customers if they withdrew more than they had on deposit.

From time to time, we review all of our lines of credit. The purpose of this review is to determine if, at the time of the review, the borrower meets the Bank’s standards for maintaining a loan account with us. Based on this review of your account and information received from a consumer reporting agency, we decided to reduce your Overdraft Line of Credit.

We encourage you to contact Equifax, the consumer reporting agency whose information we used, so you can obtain a copy of your most recent credit report.***

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avatar destardi

“ANGRY,” did they give you a reason for closing the account after saying everything else was still usuable/business as usual?

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avatar Aheula

When I opened my ING account a year ago, my credit score was much lower than it is now. They closed my account in May; sent me an apology letter and I continued to use my account and $250 overdraft protection. I had faith that that was the end of it. Until this month when they randomly took my overdraft away and caused me late fees on bills I was paying with the overdraft (that was paid and used according to all agreements). It seems to me that they are unreliable and I am certainly closing the account. I don’t know that the bank will be able to stand if everyone affected by this change closes their accounts. We shall see. Given the circumstances I suggest everyone (whether affected by the overdraft or not) withdrawl their funds and redeposit into a more reliable source.

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avatar cto

That’s not bad advice! My overdraft was $1000 and they took it away and demanded the money within 30 days and threatened me with reporting me to the credit agencies. I dont have bad credit and wasn’t about to let that happen so I immediately transfered them the money. Then they gave me the $1000 overdraft back. I have not used it since and was way in the positive when they decided to yank the overdraft again. I just pulled ALL of my funds out. So did my sister and father and roommate. A bank can’t survive without money, and they won’t get to mess with mine again.

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avatar marehoop

They did the same to me. They closed me out and took away my $1000.00. Then the next week I got a letter of apology and they re-instated my account along with the $1000.00 overdraft, then in October, I get another email stating they took away. I was not using it at the time but it would have been nice for notice. I plan to pull my funds once I get things established….

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avatar Tammy

I have now opened an account with E Trade. The heck with ING. They have screwed a lot of people over.

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avatar Mike

ING Direct must be doing something right! Almost 6 million customers that don’t abuse overdraft protection and are responsible with their money. Maybe the people on this blog should look in the mirror :)

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avatar Lorraine

A while ago (I don’t know when), I opened up an Orange Savings account. I didn’t do much with the account; a while later, they apparently closed the account due to inactivity. I have a daughter in college and was budgeting carefully at that point. Now, I’m in a better financial position, and tried to re-open the account. GUESS WHAT! You can’t! If they had to manual close the account, they blacklist you from every being able to open another account with them. I called them twice, trying to talk to a different person, to see if I could get this lifted, but NO. They said the bank made a business decision that prohibits me from ever opening another account with them, ever. By the way, I have excellent credit, never bounced a check, always pay my credit card balances in full, etc. This bank is awful and I think others should know about it before considering doing business with them, even if their interest rates are good.

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avatar Destardi

Mike…you’re a simpleton.

Maybe you should go back and reread every post on here. I can’t explain any better than that, if you don’t understand the point of the blog posts.

Good luck.

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avatar Aheula

Mike must work at ING. ING is a huge disappointment to all who bank there. Mike open up your ING account and let us know in one year what you think. As a representative of a customer who doesn’t abuse overdraft and is responsible with money (unlike the 145 people who posted here) you would be a good guinea pig. Prove us wrong about the level of service and business ethics of ING Direct.

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avatar Aheula

This is a quote from the ING webpage. Please be warned; do not buy the laptop.

“How does the Overdraft Line of Credit work?
The Overdraft Line of Credit covers you if you make a withdrawal that takes your Electric Orange balance below $0.00.

Example: You have $1000 available in your Electric Orange. You want to buy a new laptop computer for $1,100. Since you have a $165 Overdraft Line of Credit available to you, you can use your Card to buy that laptop. The charge for $1,100 will be approved. Your Electric Orange balance will appear as -$100 on our website. You will now be paying a competitive interest rate on the $100 you have borrowed.”

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avatar Nick

I am the NICK that originally submitted this story, and I must let you all know, they did keep my account open, for some reason… I am probably not ever going to use it, but I am glad it costs them money to have my .16 cents in there.

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avatar D

I read every post on this blog in the vain attempt of reducing the level of frustration in dealing with ING. As stated in an earlier post. One can be one “event” away from your account being closed.

I understand a business utilizing your credit score to make a business decision. However, having zero negative activity and never using OD. Solely basing their decision for the EO account with just a number just doesn’t feel right and leaves a person frustrated.

All this due to the snowball affect on my credit created by medical bills.

Exercise your rights and do business with an institution that satisfies you. I know I’m just one customer, at least I’m satisfying myself by taking my meager dollars elsewhere.

I realize this is a late posting but I wanted to let any potential ING customers have a little more information. I’ve also rescinded all my personal recommedations to friends and co workers. Personally, very satisfied with HSBC.

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avatar Tammy

Here is another Perfect example of ING not knowing what they are doing.

On 12/24/07 my ING was closed. First they took away my overdraft then they “decided” to close my account.

well, I complained to the BBB and one person called me (on the 23rd I believe) from the same “customer service” number. Since they closed my account without trying to resolve anything I figured “why bother.”

So get this – 15 minutes ago I got a NEW ING card delivered to me via Fed Ex! It was mailed to me on the 24th (same day they closed my accounts!)
And was overnighted to me – for today.

When I called ING to ask WHY… They had no idea.
my accounts were closed – but they had NO IDEA why I was issued a new card…

I am so glad I found another bank to keep my money in. They are unbelievable.

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avatar T. Rupert

I live in Florida where the boom took place and you couldn’t find a commercial office space or hire enough people in the real estate/mortgage/title industry some 18 months ago. That has all changed and it is only getting worse. One of these days the banks that think they are so high and mighty putting severe rules on YOUR MONEY…not theirs, YOURS, they will be begging anyone to put money into the bank so they can keep their jobs. After all if it weren’t for the people none of these establishments would be in business. I personally can’t wait to see some of these large corporations crumble and fall. Florida where I live is ranked 5th highest for foreclosures and it is becoming a ghost town….mortgage companies have closed, realtors have left the city and most of the title companies are not closed. It can all happen in the blink of an eye and leave us all wondering what happened. Even Donald Trump can fall hard.

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avatar me

I’ve been trying for weeks to get ING to let me withdraw my money. Apparently, they’ve forgotten it’s MY money. They keep on making me jump through loops. I’ve wasted so much time with them. Whatever you do, don’t do business with ING Direct.

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avatar Bigcat

Amtrustdirect works just fine for me. Very competitive E-savings & E-money market accounts every day – regardless of what the fed rate is at. Only takes two business days to withdraw funds back into my checking at my credit union.

For the people commenting on how ING is in it for them, not for the customer…. Answer this one question… Are they a “for profit” entity? Like someone posted earlier, if you want a bank that will truly treat you like you are important to them, do all your banking with a local community credit union – where the money stays in YOUR COMMUNITY!

Search out the knowledge that will help you all become financially more stable.

Good luck!

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avatar Richard

@Bigcat – You act as though “customer-service” and “for profit” can never be synonymous.

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avatar Bigcat

I didn’t say a for profit company can’t give good “customer-service”. I do applaud you for being able to use a word with so many syllables! What was that? Like 4?

Now go out there and do your own DD! You know, read the fine print!!!

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avatar Richard

Typical Internet idiot. Focusing on attacking the people, rather than the issue. Good for you.

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avatar Rob

I’ve got to say it — if you’re a credit risk and live in the overdraft regularly you pretty much deserve what you get. ING may not have felt they needed to protect themselves originally when they offered these accounts, but the behavior of their customers was liking costing them a great deal of money. As part of their agreement to change the terms as they see necessary, they made a change. IMHO a person who is taking advantage of another person or institution is not entitled to complain when the situation has been ended by the other party. Quit complaining and be glad they don’t still have debtor’s prisons.

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avatar Carl

Rob was it? It wasn’t what! It was how ING Direct did what it did. Rob, be aware the next time you use any of your line of credits “LOC” for what ever reason from what ever source….they all have a right to change the agreement. Hopefully “they” will not change that agreement in the middle of your transaction without notice….. That is what ING did… Electric Orange Line of Credit may be tied to the Electric Orange Checking for overdraft protection; but it is in fact a Line of Credit that ING encourages its’ customers to use. Debtor’s Prisons were for people that did not meet their obligations….and that was not the issue either. The facts remain… ING SUCKS…and you have no idea what this thread is about. May god continue to bless you with your ignorance because you surely are not that arrogant or stupid.

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avatar cluelessnomore

Debtor’s Prisons, how cute. Guess you forgot America was and is built on debt. Take away the debt, watch Banks, Credit cards, and major industries and their boards of directors jump out the windows as profits plument. I have used my OD many times. Always repaid. Like the convience of a short loan when needed. Hope I don’t drop a bar of soap in the shower as they cart me off to the dreaded Debtors prision. Shouldn’t be alone long, with the Government coming soon behind me.

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avatar Bigcat

I apologize for working Richard into a lather on wednesday. I didn’t mean to upset people – okay maybe just one – by telling them to be responsible for their own actions. If that makes me an idiot, boy i’ll take that definition anytime. I guess never having used OD/LOC’s must be why my FICO score can’t get past that last .1 to .2% of the population.

My point from the beginning is simply that anytime you agree to accept terms, you should read them thoroughly and know what could happen if you don’t follow the rules you have agreed to.

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avatar Sarah

I think what you are forgetting is that there are many people who DID follow the rules. ING stated that no credit check would be done (which, IMHO, was stupid to begin with but anyway…), and that if the ODLOC was used, it simply had to be paid back and you would pay interest. I was one of many people who used it (I don’t like credit cards b/c I know myself too well and occasionally used it for work expenses–which all got paid right back as soon as I got that expense check), followed the rules, was not living outside my means, and still I was on that account closure list, albeit the one where the accounts weren’t closed after all. My point, again, is that some people DID follow the rules and still got screwed in an unprofessional manner.

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avatar cluelessnomore

It seems most everyone here is being responsible. Just another arrogant remark from a Fico snob. I have an average Fico score not excellent. Various reason, none which include irresponsibility. I have had a very high Fico score before and proberly will again one day when this storm of life passes. But I do know for sure I have never bragged or would base my character or spiritual being on a score based used for credit rating.

The ING closings made no sense or have rhyme or reason to the people they choose to keep open or close. They have kept my account open?

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avatar josh

Comment 154, “Rob”

You should be thanking God they don’t lock up people without empathy.

Let me clue you in on something…Not having the ability to put yourself in others’ shoes, and viewing life from their vantage point is a horrible lack of information.

Also, “Rob”, poor reading comprehension in addition to lacking empathy must make you one cold kinda guy; sort of like a neo-conservative authoritarian. Makes me wanna see what happens when YOU lose your job, have a medical problem, or someone in your family experiences it, and exceeds your insurance coverage, OR lose your job, and THEN have a major medical issue balloon your debt. Is that where the rest of us normally human, warm-hearted types can go “nener nener told ya so!”?

Seeing things in black and white must be a terrible way to live…sort of lacks a 3 dimensional view of human life.

What part of “closed my account because of credit score”, not OLOC, did you miss?

Sorry man, but your chastizing others for situations that you have no idea actually exist takes big cojones, and little brains.

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avatar Bigcat

For now, ING has paid a price for their previous policies, and many consumers have learned a valuable lesson in what can happen at any time when you agree to certain terms.

I hope for everyone’s sake that some day we all can reach a point in life where everything is fair. Until then, I wish you all good luck dealing with how nasty life can be.

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avatar todd

Recently it became possible to “freeze” your credit with the credit bureaus so no one can access it. Wonder what ING would do then? They request a SSN to report interest to the IRS and then abuse having it by accessing your credit report. Sounds like dirty pool to me.

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avatar John

I have recently closed my ING DIRECT accounts after their shady business practice, i would recommend anyone who’s thinking of converting to an ONLINE BANK from their traditional B&M to hold that thought.
John

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avatar Joe McNally

I don’t know anything about this specific case. But I do know that ING has lied to me and that they are, in effect, stealing money from me. Serious charges I know, but hear me out.

I was one of my customers that ING “inherited” when NetBank went belly up. I received documents from ING shortly thereafter (fall of 07′). I had 4 CDs at ING. Once I received those docs I called ING and their customer rep told me that, because of the special circumstances of the funds transfer (over which I had absolutely no control!!) I would be allowed to “break” my CDs at any time (not just within 30 days, but anytime!!), without penalty. I wanted to adjust the maturity date of the CDs to more conveniently create a CD ladder for my son’s college education, making all of them come due in early June in anticipation of paying tuition over the summer of ’09 thru ’12. So I made a reminder in Outlook to call ING in early June of ’08 to do just that. The reminder came up…I called ING…and they told me that I would have to pay a penalty. Needless to say, I am removing all funds from this bank.

They lied…plain and simple. And they are stealing money from me by making me pay a penalty for “breaking” my CDs…after they had told me they would do no such thing.

Do not do business with these people.

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avatar christine

Hi Joe, I can absolutely 100% sure that netbank customers were not told that they change their CD terms at anytime. You were suppose to either take your cd’s out at the time of conversion or wait till it matured. Why would you call 7 months later to change the CD when the takeover occured in Dec. I am sure there is more to your story, please do not bash when without telling both sides.

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avatar Joe McNally

I was told that. Why did I wait?…because I wanted the maturity dates to be in June…so the funds would be available at an appropriate time to pay college tuition, etc.

How can you be “…100% sure…”??…you weren’t listening to my conversation with the ING rep who told me that. The take away lesson is…if it ain’t written down, it hasn’t been said. What bothers me is that the ING rep was slimy enough to lie to me in order to keep my funds for another 6 months. In don’t treat clients like that.

Both sides? What is the other said except lies…a lie 7 months ago…and a lie now denying the lie 7 months ago? If you wish not to believe me, so be it. I have no proof. But I can tell you that after that conversation, I set up a reminder in Outlook, reminding me to “break” my CDs and set up a new CD ladder in early June…now why would I do that if I hadn’t been told I could break the CDs sans penalties? Do you think me delusional?

Believe me, if the rep hadn’t told me I could “break” penalty free at a later date I would have cashed them in right then.

Some bankers do lie…I know that for a fact. You are, of course, free to believe as you wish. But sometimes, someone has to say…”the emperor has no clothes…” when all around us everyone says how beautiful his gown is…and he’s really naked as a jaybird.

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avatar Former ING Employee

Joe and Christine.

I was an employee if ING Direct at the time that they aquired Netbank directly involved with the Sales and Service side of the business. There were multiple times that information was told to customers that were correct at the time and then policies changed. From what I understand, Joe should be at no fault for a penalty. ING is known for policy changes to protect the bank quite often. I can honestly say that the only safe product they offer is the Orange Savings Account. Because there are no strings attached.

— Joe that is rediculous that they can not make an exception for you due to the issues that you have had to deal with the Netbank conversion. It ended up being a partial disaster for all parties involved.

—Christine, I would check where you recieved your information from. It is 100% incorrect.

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avatar christine

All of the phone calls are recorded so you can actually call and have the conversation listened to and in some cases you can listen to the call yourself.

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avatar nightwatchman

To Anon or anyone who feels the way he feels: If you’re going to help, then help, if not, shut up. You sound like the type who would callously say to a drowning man “why are you screaming, you should have learned to swim while you had the opportunity”!! I’m also willing to bet that you will even defend your right to act so cold!! “Out of the abundance of the heart, the mouth speaks”

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avatar Ranger Bob

Hello.. Its been 18 months since my account was closed. I wasn’t happy. But eventually I got over it. There were MANY other banks begging for my business. Maybe its time everyone else moved on as well. ING will eventually pay for what it did to many of its customers. They won’t get my business anymore and I won’t recommend them. End of story.

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avatar Tubbs

This is crazy. ING makes money on overdaraft fees. anyone who thinks that ING is looking out for their customers by filtering out the “deadbeats” should buy this bridge I’m selling in Brooklyn.

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avatar Christine

No I am correct but I guess one too many errors would explain why you are a former employee.

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avatar aann

When you open the electric orange account online or by phone it clearly states that your credit will be pulled and your credit must meet the requirements before the account is open. It also states that your credit will be looked at randomly to make sure you still qualify for the account. ING is great! Sorry Nick but it is your fault. People who make this mistake probably didnt listen to the associate or didnt read the terms and agreements ( by the way you have to read the terms and agreements before the account is opened as well). If you dont believe the associate didnt tell you that the credit would be pulled then call and have the call pulled to found out. Its that easy.

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avatar Nick

Aann: You probably didn’t realize this, so I’ll forgive your ignorance, but that was NOT in the TOS when I signed up for this OVER A YEAR AND A HALF AGO!! When you are on the internet, please look at the DATE of a posting if you are going to reply to something, so you can remember to look at things in context, and you will make a more informed post.

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avatar simplemind

When the EO accounts were initially offered the terms said Overdraft Protection WITHOUT ANY credit check. I guess you didn’t read the entire blog or didn’t understand the point of it all. The terms were changed and the people who had an under the previous terms were never “grandfathered” in.

I read the terms and agreements before I opened an account. “No Credit Check” were the origional terms. That was the entire point of the blog.

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avatar Jessica

I’ve had a series of hitherto inconceivable violations of policy committed against me and my accounts there. I had two CDs, a savings account, and a checking account. My husband had one CD, and a checking account which we shared [both names and both social security numbers attached].
Today, I have one CD, one savings account, and one jointly held checking account. My husband closed my other accounts and opened new accounts in his name alone with the proceeds, then [destroyed all my shoes, most of my clothes, books, and furniture, broke my foot and knee, destroyed the surgical recontruction of my previously injured right hand and ruptured ligaments and cartilage of my left, and tried to push me out of the house we shared, leased in my name. then he went to jail, for two hours, which is when I discovered the changes made at the bank and immediately changed my passwords, but] attempted to gain control of my remaining accounts, which accounts were frozen as he’d made the maximum allowed attempts using incorrect passwords. ING froze my access to my accounts, not just his access: they required that I use a new ING generated PIN, and delayed providing it for 10 days. When I received the new PIN, I was advised that they were holding all of my accounts, at my husband’s request, pending submission of a document granting him ownership and total proceeds of all but the jointly held checking account.
I won’t quote the diverse written policies broken here, but merely offer that ombusman reps repeatedly deny knowledge of any policy at all. Their manner is so unprofessional that one might presume they are not an accredited, insured financial institution headquartered in NL at all but are more likely a Romanian laundering outfit. Every request for information, every attempt to provide documentation, every single encounter with ING Direct’s fraud unit is not just time wasted; it’s engagement of the sort of obstreperous bullying covered by 8 different State of CA civil codes. And that’s likely how I’ll recover / spend the funds in question.

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avatar Denny

I have been with ING for over a year now and never had a problem until last week. I am presently deployed in Iraq. I use sharebuilder linked in my ING banking account and when I tried to buy some stocks last week, I was blocked from the sharebuilder account. I called ING and they said because I am overseas I cannot enter the ING/Sharebuilder website. We really sucks because I have thousands of dollars in their brokerage and have no access to it. I am presently trying to figure a way for my attorney to gain access to my stock account to remove all my investments and money markets from ING and transfer them to other brokers. When I called the man just said sorry but the computer picked up you were not in the USA and so access is denied. I told him I needed to withdraw my funds and he said sorry sir but you can not do that from overseas. I do not have R&R for 5 month so cannot get to my money unless my attorney can access my accounts. As soon as I remove the money from ING brokerage I intend on removing all accounts from ING and transfering to E-trade.

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avatar Jeff

Have you tried USAA? They work with the military, including if you are deployed overseas and they have multiple products and great customer service.

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avatar G

Do not get an ING Direct mortgage – it is classed a Predatory Home Loan in Massachusetts, due to their 3% prepayment penalty! ING Direct may be a Predatory Lender in your state too. I held my loan for 3 years and did not miss a payment, upon selling my house ING took 60% of the profits as a fee without any warning, which is illegal under Mass State Law. I’m trying to recover the thousands ING decided to keep for themselves and I’ll let you know what progress I make…

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avatar Cody

You know an easy way to control whether or not they can check your credit and then close your account? I’ve placed a freeze on all of my credit records, you can’t pull them at all without specific authorization which I have to call in to the credit agency they are trying to pull my record with. I have to pay a small fee to the credit company to life the freeze for a limited time, if I choose to let them. This prevents so many problems. They can’t close an account based on credit if you don’t allow them to check your credit. I personally see no reason why any company should touch your records without approval from you first. If they hit your credit when it’s frozen and it comes back that it’s frozen, and they approve your account anyway, you now have legal ammo if they close your account and use that “we checked your credit” BS. Then you’d know it’s just a lie they’ve used to close your account down.

Although, I doubt in 2010 this will be a problem anymore. There have been several new bills passed into law in regards to credit and banking thanks to banks being unable to handle themselves as a private enterprise. They need someone to hold their hands apparently. I’m all for strict regulation on banks. I personally don’t think they are able to balance their own check books let alone yours.

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avatar Alex B.

Stay away from ING. If you login from outside the US (like from Canada), they can lock your account and keep the money for up to a year. They are great until you run into a single problem. Only then you’ll see the true face of this nasty bank. A friend of mine also had a very bad experience with ING. They blocked his account because he used PO box as a mailing address (While moving to another state). If you change your mailing address it raises the ‘red flag’ automatically and they pull your credit history to verify that the mailing address is already part of your credit report. If not, then say good bye to your money. Stay away from this “bank”.

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avatar Nate

I hate to read these negative comments about ING. I’ve been a customer for 5 yrs and I haven’t had any problems. I was in Korea for 12 months and accessed my ShareBuilder account with no problems whatsoever. I was only shocked that I was able to make free withdrawals at a Bank of America ATM.

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avatar Al

Sorry to say but people with the low credit scores are the ones that drove the economy into the dirt, but the people that allowed them to take out credit are the ones at fault, the customer is always right, sometimes. All I know is that if i were a bank and someone walked through the door with a low credit score i would NOT let them overcharge their account because what if i never get the money back and get defaulted upon. Stop seeing things from the little one’s point of view and see it from the ones who actually have money on the line.

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avatar Michael Cole

As stated in the Account Terms and Conditions you agreed to when you opened your ING DIRECT account(s), we can close Customer accounts at any time, for any reason and without advance notice. After reviewing your activity, we’ve determined it’s in the Bank’s best interest to close your account(s).

Your Electric Orange(SM) and Debit MasterCard® will be closed 30 days from the date of this email.

That is the letter I got. They closed my account for no reason. Also, they refused to inform me of why they closed the account. DO NOT USE THIS BANK!!!

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avatar andrew

Unfortunately, according to the terms and conditions of ING they have a right to close your account. However, you may still have a case; you claimed that they first sent you a letter limiting the number of transactions you’ve made – you did in actual fact do this. You limited your transactions to 2-3, well below the 6 they had requested. They sent you a letter with a 30 day notification – now I have to be honest, unfortunately, as unfair as it is, they do seem to have given you reasonable warning. If you have proof of an extenuating circumstance that did not allow you to do what needed to be done in 30 days you can request an extension. However I would start to look at alternatives; you can either look getting a pre-paid card – you can even get a mastercard,

The best prepaid cards I can think of are cashplus, clearcash and tuxedo. Another alternative is to look into opening an offshore account, you can go to the banks themselves e.g. barclays or lloyds but some of them require a large deposit so check their conditions first. Alternatively have a look at SFM and bank-solution who will open your account for you.

either way good luck!

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avatar VikingsFan

Ing’s not the only one out there doing this….

On my blog I explain how to open up bank accounts with FDIC banks that do no credit checks or ChexSystems. [edited to remove promotion]

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