Since ceo bill cooper's contract was extended and he continues trying to re-invent the bank by changing account terms and fees, i am done as a tcf customer. I am excited to be leaving and should have done it long ago.
tcf, keep giving new customers $100 for opening an account and start charging(screwing) your long term customers with a $9.95/month service fee to pay for it.(great business plan!)
if i have a minimum number of qualifying transactions a month,(i believe it's 15) i can avoid the monthly service fee. If i don't meet the minimum for a particular month(which is actually less work for the bank to service my account)tcf will charge me a monthly service fee. I think i'm just over 10 per month, but would rather not feel i have to track this on a monthly basis to avoid the fee. Who knows if terms to this fee or something else will change next month. It's getting old!
from numerous other changes to my account's terms and services over the years, being shorted cash back at a tcf drive thru three times in a six month period and hearing other tcf stories, this break up is long over due!
i am aware that fees are very important for tcf's survival. I also feel, if you treat the customers you already have right and with respect, they will help you build your business. Tcf tries to bribe it's customers with cash for their referals thus raising my fees again.
sorry bill, i am not sticking around to contribute to your pay raise and watch the less financially fortunate go further in debt due to your "re-inventing" the bank and all the new fees.
Tcf had acquired too many non active checking accounts over the years of offering incentives to open an account. They were costing money and not generating any. The monthly fee will take care of the problem and generate a little fee income in the process as the accounts are assessed fees to a 0 balance and then closed.
While this is a logical approach to the problem it points out the difficulty TCF is having and will continue to have going forward.
If an account has 15 transactions it is a free account. However, the numbers of new account openings will drop as people will not open an account they know they won't use if they have to pay fees. The lack of new account openings the new policy will cause will draw back the curtin on TCF's entire operation.
They are in a mature market. They have lost their #1 loan product (home equity) and now their #1 deposit product(totally free checking) has been severly comprimised.
They can't make more money without new customers. They can't charge the customers they have any more than they already do. They have lost any competitive edge they once had. They can't cut expenses any more without effecting customer service and losing customers. Lastly, they are not committed to the future. Bill Cooper did a wonderful job with TCF 20 years ago. But his new contract for an additional 3 years signals a lack of management continuity.
There is no reason to purchase this bank unless you believe it will be sold. I think that will happen sooner than later but the premium will not be that much. This bank has very little future and any prospective buyer knows that.
This stock peaked at 32.14 over 7 years ago. It in now at 10.48, down 67%. The dividend peaked at 1.00 and is now .20, down 80%. This bank was on the down hill slide long before the housing crisis and economic meltdown. That investors choose to ignore this will prove to problematic for them.
There are many much better opportunities out there paying significantly higher dividends with much greater appreciation potential. As I have said before this stock is dead money.