Eric

How long does it take to open up CDs with the other online banks? Is it a fairly quick and painless process or is it more like the pain of opening and maintaining CDs at a brick & mortar institution? Thanks.

The only disadvantage I can see with using the electric orange account is that you really need a local bank to make it easy to quickly transfer funds. Say for instance you receive cash or a paper check and want to deposit it; If you deposit the funds in a local bank on Monday, and initiate a transfer from the ING website the same day, the funds generally show up in the online account by Wednesday.

I’ve seen a few posts where someone said they didn’t earn interest on deposits until a few days after the deposit was made. I’ve checked my statements every month and the amounts I’ve been paid match up to what they should.

Elecronic transfers begin to accrue interest the same day as the transfer. It’s possible to mail a check to them for deposit, but I’ve never done that (except when I opened the savings account in 2001)… I do remember reading something about a brief delay on interest accrual if deposits are mailed to them… but I’ve never done that. Depositing checks and cash at a local bank and then initiating a transfer from the ING site is the way I’ve deposited money with them since the first account was opened.

Granted, they don’t always have the highest rates, but the other benefits I listed above make up for the small difference in rates. The only thing I’m not 100% certain on is opening CDs. It appears to be as quick and easy as the other accounts, but I can’t really say much since I haven’t opened any as of yet. I’ll be opening my first 12 month CD on 12-1-2007 and then another 12 month CD on 1-1-2008.

I’ll post again after opening the CD in a few days to note whether or not I have any problems.

We want to ensure our Customers are a good fit for Electric Orange, so we are reviewing their accounts to determine whether the Overdraft Line of Credit feature is helping them save money. To help make the decision, we assessed Customers’ Electric Orange payment history and credit information (provided by Equifax). Based on this information, we either reduced the Customer’s Overdraft Line of Credit to $25 or closed the Overdraft Line. We are mailing letters to approximately 45,000 of these Customers to notify them of our decision. The toll-free number for the Sales Center will not be included in the letter. We have also sent emails to Customers to notify them of the change.

Customers Who Aren’t a Good Fit for a High Overdraft Line
Closing the Overdraft Line
After reviewing these Customers’ credit and Electric Orange account history through an account review process, we determined that it was in the best of interest of the Customer and ING DIRECT to close his/her Overdraft Line based on information obtained from a credit reporting agency (Equifax) and his/her current financial situation. If a Customer has an outstanding balance on his/her Overdraft Line when we close it, he/she must pay off the outstanding balance. Click here to view the letter.

Reducing the Overdraft Line to $25
Similar to the group above, we determined these Customers have an Overdraft Line that is inconsistent with information obtained form their credit bureau and current financial situation. These Customers also have the option to re-apply at any time to increase their Overdraft Line. Click here to view the letter.

Why did we lower or close these Customers’ Overdraft Lines of Credit?
It’s in ING DIRECT and Customer’s best interest to periodically review Overdraft Lines to determine if the Customer’s current credit situation is still reflective of the original decision. We are involved in a market place where businesses of different sizes and services are tightening their standards for extending lines of credit to Customers. Basically, we are working to prevent any potential losses associated with products like the Overdraft Line of Credit. If we discover the Overdraft Line doesn’t match a Customer’s current needs, we will take action by reducing or closing his/her Overdraft Line. This ensures we’re matching our products (and features of these products) to the right Customers.

How are we notifying these Customers?
As stated earlier, we are mailing letters to these Customers to notify them of our decision. In addition, we have sent follow-up emails to impacted Customers to let them know about the Overdraft Line of Credit reduction, so they can plan their Electric Orange transactions accordingly. Please click here to see the emails.

How should I handle calls from these Customers?
This is what you should do if you speak with a Customer affected by this change:
• Please provide the following explanation:
o We are making our credit standards more rigorous to limit ING DIRECT’s exposure to potential losses from products like the Overdraft Line of Credit, which is an unsecured open-ended loan. Everyone from major corporations to small business are keeping a close watch on the lines of credit they offer to Customers, given the changing marketplace. ING DIRECT reviews all lines of credit periodically, including Customers with Electric Orange Overdraft Lines of Credit, to determine whether the Customer meets the Bank’s standards for having a loan account. These reviews include obtaining credit information about our Customers with loan accounts. We encourage you to contact Equifax directly to learn more about your credit rating. This way you can get a copy of the most recent credit report we used to revise your Overdraft Line. Here’s how you can contact Equifax:
 Phone – 1-800-685-1111
 Online – http://www.equifax.com
 Mail – Equifax Consumer Services, PO Box 740241, Atlanta GA 30374-0241
NOTE: If a Customer is interested in increasing his/her Overdraft Line, please explain he/she may re-apply for an Overdraft Line increase at any time; however, it is not guaranteed he/she will be approved.
• Ask the Customer if he/she has any pending or scheduled Bill Pays or transactions.
o Advise the Customer to transfer money from his/her Orange Savings Account or external link to ensure there are sufficient funds to cover all pending and scheduled transactions.
o Bill Payments and transactions will not be processed if there are insufficient funds in Electric Orange.
• If the Customer’s Overdraft Line was closed and he/she has an Overdraft Line balance, please advise him/her to continue to payoff the balance by making deposits into his/her Electric Orange.
• Assure the Customer he/she will not be charged any fees from ING DIRECT in the event a transaction is rejected.
• If the Customer is adamant about disputing our decision, you can email Unsecured Credit as a last resort. Do not forward all inquiries about this issue to the Credit Team.
o Send an auto-index email stating the Customer is disputing our recent decision to close/reduce his/her Overdraft Line.
o Set the expectation a member of the Credit Team will contact him/her via email within 24-48 hours to follow up on the request.
o If Customers want to file the dispute themselves, they can email UnsecuredCredit@ingdirect.com.
• If the Customer is calling to complain about our decision, please make sure you log the Gripe in SASSy.

Some Customer Concerns
What happens if a Customer doesn’t have enough funds to cover a preauthorized, pending or prescheduled transaction?
• Preauthorized Card transactions (e.g. hotel stay, car reservation) and ‘Pending’ status (the funds have been verified and the transaction is scheduled to occur) – These transactions will go through, even if there are not enough funds in Electric Orange to cover the transactions.
• Prescheduled Card transactions and Bill Pays (the transaction has not occurred and payments were previously set up) – These transactions will not go through if there are not enough funds in the account. Please assure Customers they will not be charged any fees from ING DIRECT for this rejection.

Did we ever tell Customers ING DIRECT would check their credit after opening an Electric Orange?
Yes, the Overdraft Line of Credit Terms & Conditions specify the Bank may obtain information from a credit bureau in order to manage the account. Customers were provided with the Terms & Conditions during the application process. They are also available on our website for Customers to easily access. Here are some important excerpts that relate to this issue:
• We’re allowed to increase or decrease your credit limit at our discretion, at any time, without advance notice to you, as allowed by applicable law. You also agree that the Bank reserves the right to obtain follow-up credit reports on you in connection with the maintenance, review or collection of your OLOC.

ING can rot in hell for all I care.

AND.. ING doesn’t immediately raise rates when the fed raises them.. It normally takes a month. But when the fed drops rates, ING drops immediately.