Complaints

• Initial Complaint

  10/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Based on the information you've provided, here's a suggested response for the BBB complaint form's "Tell us about your problem" section:On September 18, 2024, I applied to open a Certificate of Deposit (CD) account with ******************. I spoke with *********** ********, branch manager of the 96th ************* branch *************), who assured me that my account would be opened and not to worry, explaining they had received a large influx of CD account applications.Later that same day, I received an automated email from Merchants Bank of Indiana stating, "Unfortunately we are unable to open your account at this time" without providing any reasoning. Since then, I have made multiple attempts to contact the bank:1. Left a voicemail on the number provided on 9/18/2024 2. Sent several emails to their designated address on 9/19/2024 and 9/20/2024 3. Called and left a voicemail for *********** ******** on 9/20/2024 To date, I have not received any response to my inquiries. The bank has all my personal information and government ID documentation required for opening the account. I believe the bank's actions may violate consumer protection laws, particularly regarding unfair and deceptive practices in financial services. As a resolution, I am requesting that my CD account be opened at the interest rate I had applied for on the original date of application (9/18/2024).The lack of communication and transparency from Merchants Bank of Indiana is unacceptable for a financial institution. I am seeking BBB's assistance in resolving this issue and obtaining a clear explanation for why my account application was denied.

  

  Business response

  10/11/2024

  October 11, 2024
  
  
  ******* *****
  Better Business Bureau
  Serving Central Indiana
  *********************************************************** 103A
  Indianapolis,IN 46241
  
  RE:  Customer Complaint ID #********
  
  Dear *******,
  
  On October 4, 2024, Merchants Bank received notice of the complaint from **************** (Complaint ID #*********.  We are committed to providing a transparent and responsive customer experience. We sincerely regret any frustration or confusion caused in his recent attempt to open a Certificate of Deposit (CD) account with us.
  
  In reviewing the submitted application, we followed our standard procedures and employed robust fraud prevention tools, which are designed to protect our customers and the bank. These systems flagged certain aspects of the application, and as a result, we were unable to proceed with opening the account. Unfortunately, based on our procedures and the requirements we have in place to confirm identity, the account application did not meet the thresholds required for approval. While we understand this may be disappointing, these measures are in place to ensure the security of all accounts.
  
  Regarding Mr. ******** attempts to contact us, we deeply apologize for the delays in our response. Following the Federal Reserves rate announcement on September *******, we experienced an exceptionally high volume of inquiries, which led to longer-than-expected response times. While we prioritize returning calls for approved applications, we regret that this impacted our ability to respond to his inquiry in a timely manner. We are continuously working to improve our customer service response times, especially during periods of high demand.
  
  Please know that personal information provided to us remains secure, and we have taken appropriate measures to ensure its protection. If you have any further questions or if theres anything else we can assist you with, we encourage you to contact us directly.

• Initial Complaint

  09/20/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  **** said it would take 1-2 days to review my application for CDs. On 9/20/2024 within 20 minutes they opened the CDs without my final authorization and refused to close them. The interest rate they advertised was not the interest rate recevied at the end of the applicaiton process, so I did not want to go through with the application for 2 CDs. This is fradulaent and misleading information being portrayed by a bank. I issued a stop payment on the *** debits but if they go through I will follow with a lawsuit.

  

  Business response

  09/27/2024

  RE: Customer Complaint ID #********
  
  On September 23, 2024, Merchants Bank received notice of the complaint from *************************** ID #*********. This complaint involves his recent experience with opening accounts online with us. At Merchants Bank, we are committed to ensuring our customers have a smooth and transparent experience when opening any account or product.
  
  Following the Federal Reserves decision on September 18, 2024, to lower interest rates, we adjusted and published our updated product rates accordingly. All advertising,including our bank website, the banks online account opening platform, and product disclosures were updated to reflect this change, effective September 19, 2024.
  
  Our records indicate that at 3:31 p.m. on Friday, September 20, 2024, Mr. ******* submitted applications through Merchants online account opening platform for two Fixed-Rate CDs:  one for a 12-month term and one for a 6-month term, each for $50,000, totaling $100,000. The two CD applications were processed quickly, following our standard procedures. Upon contacting us at 4:15 p.m. that day, Mr. ******* expressed a desire to cancel these applications due to the change in interest rates. We fully understood his request and advised him to initiate a stop payment of the funds transfer with the originating bank. We appreciate Mr. ******* following this recommendation,and we can confirm that the funds were returned, and both CD applications were cancelled without any further action required.
  
  We value Mr. ********* feedback and are pleased that this matter has been resolved as desired. Our priority remains to ensure that our customers feel supported and that any concerns are handled with care. We trust this response addresses the concerns expressed in the complaint. 

• Initial Complaint

  09/27/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Tried opening on online CD account. I was denied and a representative said "my application failed". I asked why? Was given no answer other than it just did. I asked this representative to take my information and check me out personally. He said no. I told him to get a supervisor. The supervisor told me the same thing. I then explained that I've NEVER been turned down for a bank account in my life. I have stellar credit (over 810), same job for over 32 years; multiple bank accounts; multiple investment firms; multiple real estate properties; etc.etc.They hung the phone up on me and said we can't help you if you can't get by our online application!!!!Their system has a glitch that won't process me correctly. It's not my fault. I'm being denied and SHOULD NOT BE. They are refusing to step up and take the extra time to have me vetted properly!! That is lazy and unprofessional and that is my complaint with the people at this bank!!!!!

  

  Business response

  11/21/2022

  Our response to the compliant is included in the attached document.

   

  Customer response

  11/21/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined the response would not resolve my complaint.  For your reference, details of the offer I reviewed appear below. 
  
  [Provide details of why you are not satisfied with this resolution.]
  
  Regards,
  
  *******************************
  

  
  

  They merely made excuses as to why their system is NOT working as it should be.....AND there is NO follow-up system in place for those who the system is failing.  If someone with competency was in charge of their compliance department AND received these types of complaints from licensing

  authorities, you would think they would work to resolve them and prove their system has been made better.  Just read the online views about this bank and you can dig up many of the same complaints.

  
  

  Obviously, I went on to another bank and gave them my business.  But that's not the point.  The point is this bank is invested with a software system that is kicking people out and making them ineligible to do business WITHOUT merits.  Furthermore, there is no follow-up process for the customer to be

  handled by a person by this bank.  Another mistake that's a "lose-lose"  for both the customer and the merchant.

  
  

  **********************************

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩