“Research Report Says, Customer Service NOT Important, Really?”
I had to read the article below, to make sure I didn’t miss the punch line. I can’t fathom this thought process, that this is the thinking, but maybe it really is how the big banks think.
I took a mortgage application earlier this week. Rick was contacted by the bank that holds his mortgage (Wells Fargo), to find out if he was interested in refinancing. He presently is paying 5.5%, so the saving would be $350 per month, which is very nice.
He did the application and went through the process, 11 weeks and finally the loan was turned down. No calls, just a denial letter. When he called the loan officer, he was simply told, they couldn’t understand his income and tax returns. He asked if there was something he could explain to fix the outstanding issues. He was told, NO.
Rick ownes 2 investment properties, has a business and works full time for the state. OK, it’s not simple, but certainly a doable transaction. After spending 2 hours with him, ripping apart the tax returns, his debt ratio was under 30%, which make him well qualified to get him a new mortgage.
Personally, I’m glad that these so called big banks are out there, just better for me.
Good Customer Service Not Important?
By: Brad Finkelstein
Recently I came across a bank analyst research report that made my jaw drop. Richard X. Bove of Rochdale Research came to the following “logical” conclusion regarding Wells Fargo:
1. Wachovia provided excellent customer service, but ran into financial difficulties that drove it to the brink of failure and acquisition by Wells Fargo.
2. The Wells Fargo branch that Bove deals with provides lousy customer service, which is something he has extrapolated to the entire company.
3. He said there is not a better-run bank in the U.S. than Wells Fargo. Therefore, since Wells Fargo is lousy at service, customer service is quite likely “a detriment to success, not a source of it.”
In speaking with a customer service expert for an article I am working on, the expert said (and I agree) this attitude (if it is true) is good for Wells Fargo’s bottom line in the short term, but in the long term, it is customer relationships that will sustain a business of any size.
Even with the vastly reduced number of mortgage originators out there today, there is still too much competition on the street to take your customer for granted.
There is a postscript to this story. Bove said he was in the process of terminating his banking relationship with Wells Fargo because of the lack of customer service. One of the proverbial straws that broke the camel’s back—Wells Fargo solicited him for a mortgage refinance and then managed to botch it badly.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
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