As TD Bank works out problems, competitors benefit

While TD Bank works to resolve a computer problem that has left customer accounts out of date, local competitors say they have benefited from frustrated people willing to switch banks.

Citizens Bank said that "thousands" of people had taken them up on a promotion announced Friday aimed at luring new customers. Under the offer, which started Saturday, customers who open a Citizens checking account get $100 automatically deposited.

The bank said that the number of new accounts was seven times normal volume but would not be more specific.

Other banks, such as Wachovia, National Penn Bank, and PNC, said they were conducting only normal marketing activities. PNC said that it was seeing a surge in new customers from TD Bank; the others said they had not been tracking the source of their new customers.

"We have seen a significant interest in new customers coming through our door and switching over to PNC," said Kelly Finch, PNC Bank's market manager of retail banking. "A significant number are from TD Bank, but they are not the only ones."

Jim McLaughlin, senior vice president and regional manager for Citizens Bank, said the response to the $100 promotion had been so favorable that all Citizens branch offices will extend their hours and remain open until 8 p.m. through tomorrow.

The banks that have benefited declined to give specific numbers, given the competitive nature of the industry.

Meanwhile, TD Bank experienced some delays in overnight posting but is making progress, spokeswoman Rebecca S. Acevedo said yesterday.

"TD Bank account balances are currently up to date," she said. "Please note transaction processing usually does not happen over the weekend."

The problems at TD Bank N.A., formerly Commerce Bank, began the weekend of Sept. 26-27 when the bank tried to merge the former Commerce Bank's system with one at a bank it had acquired in Maine. The company is trying to process credits, including direct deposits, before it processes debits, to avoid generating fees.

Over the last week, some TD Bank customers have complained of checks not being deposited into accounts, resulting in overdrafts or in missed money transfers. Others who checked their balances couldn't tell whether deposits had been credited or whether automatic bill payments had been made.

A Citizens Bank official downplayed any connection between the timing of its promotion and TD Bank's problems.

"Citizens Bank has been playing offense aggressively all through 2009," said Dan Fitzpatrick, Citizens Bank's local chief executive officer and president. "We really want to grow our market share. This is a very competitive bank market."

Based on the latest figures, which are from June 2008, TD Bank has a 12.9 percent market share ($15.24 billion) in the Philadelphia region, based on deposits; Citizens Bank has a 12.5 percent share ($14.8 billion); PNC Bank has an 8.2 percent share ($9.68 billion); Wachovia has 20.9 percent ($24.66 billion); and National Penn Bank has 1.63 percent ($1.92 billion).

Acevedo at TD Bank said the company was trying to keep its customers informed and would reverse any fees, charges, or interest incurred because of the disruption.

"We are sorry for the inconvenience this has caused them," she said, "and we thank them for their patience and understanding."

South Philadelphia resident Joshua Mattucci, 31, a Wawa clerk and father of two, said he'd had enough of TD Bank. He opened a checking account yesterday with Citizens Bank and said he would be moving the rest of his funds from TD Bank today.

Mattucci, who had been with Commerce Bank for seven years, said that, on Thursday, he couldn't access his money with his debit card at a convenience store and gas station in South Philadelphia.

And, Mattucci said, his paycheck, which he gets through direct deposit, landed in his account two days late.

"If you cannot access your funds, you cannot access a major part of your life," he said. "Your life is on hold because of a massive networking mistake by TD Bank."