This is definitely poor customer service. Making an account dormant is the last resort that any financial institution should take. When customers interact with the financial institution on a regular basis, it would be good practice to inform the customer of any pending drastic measure to be taken. Since the “Customer is always right,” as much as is feasible, the interest of the customer should be given priority.
The plan in my mind to forestall this unconscionable action by the financial institutions is to deposit a cent in each account twice per year. I tried to understand the meaning of “Dormant Account,” from YouTube, but I am none the wiser. I still would like an explanation and wish that a banker would appear on a talk show to answer questions to enlighten customers. Generally, I think that experts should make themselves available on talk shows to interact with the “Now for Now” generation that is quickly moving away from the print media towards the audio media. Who makes money from a Dormant Account?
Who loses money from a Dormant Account. What is the nature of the loss or gain involved?
From time to time utility services are disconnected, some of them permanently because the impoverished customer overextended himself. It would be better for customer service to provide financial counselling to allow the customer to budget within his financial means and determine how many units he can afford. Some companies provide prepaid services that automatically cut off when the established number of units are used. Old equipment tends to use more units and should be considered during financial counselling. This means that it might be more economical in the long term to purchase a new appliance because of its energy efficiency.
Budgeting and finances are areas that are deficient in our education and every effort should be made to correct this. This, however is no excuse for institutions to prey on unsuspecting customers by orchestrating to charge unnecessary fees by unscrupulous means.
Anthony G. Stewart PhD