BBB Logo

Better Business Bureau ®
Start With Trust®
In Northern Indiana

BBB Business Review

What is a BBB Business Review?

Consumer Complaints

BBB Accredited Business since 09/01/1987

1st Source Bank

BBB Business Reviews may not be reproduced for sales or promotional purposes.

Customer Complaints Summary

5 complaints closed with BBB in last 3 years | 2 closed in last 12 months
Complaint TypeTotal Closed Complaints
Billing / Collection Issues2
Problems with Product / Service3
Advertising / Sales Issues0
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints5

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (5)BBB Closure Definitions
05/16/2014Problems with Product / Service | Read Complaint Details

Additional Notes

Complaint Category: None of the Above - Customer Service Complaint Issue

Complaint: I wanted a distribution of my 401(k) and am still waiting for my money after two weeks now.
I contacted 1st Source Bank to received a distribution of my 401(k) that I had with my previous employer. After being given a bit of a run-around, I was finally transferred to ***** **** who is a Financial Services Supervisor. She told me I needed to fill out a distribution form and have my previous employer fill out a portion and then I would get my money in 3-5 business days. It has been 10 business days now and I still have not received my money. I have tried to contact ***** several times now and she will not return any messages. In my last message I clearly stated that I need my check because I have pending items that I am trying to take care of and now I am facing penalties and late fees because I am still waiting for my check and I can't seem to get any response from the bank or ***** as to when I can expect it. I am extremely angered by this. This is my money and I am entitled to it. I need it so that I do not fall behind on bills and now am facing penalties and fees because the bank can't seem to send my check. Also it has been twice the length of time and that is not right. It is also beyond poor customer service to ignore a customer. My previous employer was a bank. I know how these distributions are handled and it is not a two week process. I am extremely angry by this. I just want my money.

Initial Business Response
Contact Name and Title: ****** ********** VP
Contact Phone: XXX-XXX-XXXX
Contact Email: **********
Retirement Plan Services Manager has researched incident and contacted participant who has lodged this complaint. Check to participant was issued in a timely manner on March 31st, mailed to individuals home. If individual entitled to check has not received the check my Thursday, April 3rd, they have been requested to contact the Retirement Plan Services Manager for further review and action.


Initial Consumer Rebuttal
(The consumer indicated he/she DID NOT accept the response from the business.)
****** ********* did call me and I received the check at the end of this week. However he claimed that my distribution request had not been entered by ***** until a week after I had emailed it to her. Then he informed me that things had been going through the run-around there, so I am not sure what that was supposed to mean. When I had called to find out how to receive my distribution, I was told that there was no account and was transferred around to various departments of the bank and no employee seemed to be able to find a record of my account even though I had my statement in front of me and gave the information to each person when I spoke to them. It took several calls just to find someone who was able to acknowledge that I did in fact have an account. It took nearly three weeks to receive my check from the bank, which is not what I would consider "timely". In the original conversation I had with *****, I was told it would take at most three to five business days to receive my distribution check. This had been March 10th. She emailed me the paperwork, and it was emailed back to her on March 13th after both I and my previous employer had filled it out and signed it. When ****** called me, he said that it had not even begun to be processed until March 25th. I had been trying to contact ***** between March 14th through the 25th through email and calling and leaving messages for her because I wanted to make sure she had received my request and also when I could expect my distribution. I had informed her that I had needed that money because I had come across unexpected financial issues and did not want to make them worse, fall behind, or be penalized. So the fact that it took ten business days to even begin to process my request is very poor action on her behalf. When I finally received an email from *****, she was very rude to me and changed the length of time from three to five business days to ten. It took three full weeks which was about 16 days in total for my distribution. My previous employer was a bank, so I know it does not take three weeks to process any kind of distribution whatsoever. So I do not appreciate being given such a complete run-around, nor do I appreciate being insulted with that kind of treatment. Also, I find it interesting that my check was still not processed when I filed my complaint with the BBB because it was not until the bank received notice of my complaint and ****** contacted me that my check distribution was finally processed and mailed out to me. I do not understand why it was easy to be completed after my complaint and mailed out to me that following business day, but not any time in the three weeks before then. I think this is terrible customer service on the parts of multiple employees of 1st Source Bank. Also, my distribution was not the amount my statement showed. My statement gave a balance of ********** The bank claimed it was only ******* and so after taxes my check was only ******** When I tried to contact the bank to ask why it was off by so much, not only was I unable to reach anyone, but I have yet to hear anything back. I am not someone who complains or goes around looking to create problems with companies. I am just very dissatisfied with the way this entire situation was handled by the bank from start to finish. I think it is very wrong and unprofessional to treat any customer in such a negative and degrading manner, especially someone who is just trying to make ends meet and take care of their family. I needed money which was rightfully mine. I was not happy to have to take my distribution, but it was what I needed to do to take care of my family. That is not something that should have put me in a situation where I could not get any kind of proper or timely customer service, nor should it warrant anyone to treat me as a customer so terribly. I was hit with penalties because it took so long to receive my distribution, and since I had no idea when I would be receiving it, it made things very difficult for me and that is not right. There was nothing "timely" about this situation, nor profession since the customer service I received was terrible. I will never use their financial institution ever again. I have worked customer service for years and I would never treat anyone the way I was the past month.

Final Business Response
1st Source Bank acknowledges this transaction was not completed on a timely basis in the eyes of the customer. In situations where 1st Source Bank ins conducting business on behalf of one of our business customers, as in a 401K Plan, additional approvals are required by Federal Regulations which often extends transactions times. 1st Source Bank has changed internal processes to track the internal approvals, external approvals, and completeness of the forms to be able to be more responsive to our customers and provide them with more complete information on where their distribution is in the process and why.

Complaint Resolution: Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

10/28/2013Problems with Product / Service | Read Complaint Details

Additional Notes

Complaint Category: None of the Above - Service Complaint Issue

Complaint: 1st Source failed to explain hidden fees
I have banked with 1st Source on two occasions and both have turned out unfavorable. The first time I banked with 1st Source I opened an account with direct deposit but eventually I got laid off. I was never notified when I opened the account that I would be charged for not using direct deposit. So after about two months I checked my balance and realized that they had been charging me fees. I contacted the bank and after much effort they agreed to remedy the situation by giving me a **** gift card. I then ended up locking myself out of my account by putting in the incorrect password online too many times.

The second occurrence is much like the first. I got another job and I re-opened my account a 1st Source. Things are going pretty smooth. A few months go by, I checked my paper statement that I hope they are not charging me for after I opted out, and found out that they have been charging me for not using my direct deposit. My job is switching check systems and we have been getting paper checks for almost two months. I explained this to the banker when I received my first paper check and she assured me that she would change my account to avoid any fees that I was well aware of at this point.
I also found out that 1st Source also charges ****** on top of the ** or ** a non-associated ATM charges. I wonder how much money I have lost by doing this. I had no idea they did this and had I known I would have never used a non-associated ATM. Why didn't they explain this to me? It's simple, they get to suck you dry, and you have no idea. I wonder what other fees I am being charged and am unaware of.

I have been thinking of changing banks and closing out that account for some time but now I really have a reason to. I understand that the bank has to make money but taking money from my account without notifying me is stealing. I would rather that they be honest with me and allow me the opportunity to go somewhere else than to tell me all of the good points in an effort to get my account, only to steal from me.

Initial Business Response
Contact Name and Title: *** **********
Contact Phone: XXX-XXX-XXXX
Contact Email: ***********
I spoke with Mr ***** on 10/9/2013 at 9:40 a.m. He explained his concerns (mostly the same as outlined in this BBB case).
We discussed the issues - and he was very civil that his concerns had been addressed & resolved by the branch personnel at our South Bend Main office banking center.
He was good with the bank, and said there was nothing further that concerned him. In his mind, the case was resolved.
*** **********
Manager of Central Region Banking Centers - 1st Source Bank XXX-XXX-XXXX


Complaint Resolution: Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

04/25/2013Problems with Product / Service | Read Complaint Details

Additional Notes

Complaint Category: None of the Above - Refund or Exchange Complaint Issue

Complaint: I am filing a complaint about fees 1st Source Bank has charged me.
To Whom It May Concern:

I have been a member of 1st Source bank since January 2008. I do not use this account (XXXXXXXX) often and I mainly signed up to have a checking account for ebay. In November 2011, 1st Source started charging their customers $**** per month to have a paper statement sent via mail. I did not pay close attention to my statements and by the time I noticed the fees, it was February 2012 and $***** was already taken out of my account. I signed up for E-statements in February 2012 to avoid these ridiculous charges. In March 2012, I received another paper statement in the mail with another $**** charge. When I contacted 1st Source, they stated that I had gone on-line to sign up for E-statements, but did not hit the "confirm" button. I went back on-line, signed up for E-statements, hit "confirm" and they waived the $**** fee for the month of March 2012.

I do not use this account often and I mainly signed up to have a checking account for ebay.

On April 19, 2013, I received a paper statement from 1st Source with fees totaling $10.00. They not only charged me a "dormant fee" for not accessing my account, but also discontinued my E-statements and charged me $**** to send a paper statement. I contacted my branch in Granger IN at XXX-XXX-XXXX and was told by a teller that she would talk to her manger about what they could do to waive these ridiculous fees. The teller returned my call about an hour later and informed me that they were unwilling to waive these fees. I went to the branch and closed my account.

I believe what 1st Source Bank is doing to their customers is wrong. I never received any notification that my account would start accruing charges. If I had, I would have closed the account down before they started withdrawing money from my account. I am contacting the Better Business Bureau to file a complaint.

If you have any questions, please contact me at XXX-XXX-XXXX or email at *****


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

Business' Initial Response
Ms. ******,
I received a copy of your Better Business Bureau complaint toward 1st Source Bank, our Granger Martins office, and our fees.

First of all, let me say I'm sorry we were not able to resolve your fee concerns to your satisfaction, certainly our desire is to find mutually satisfactory outcomes whenever possible. Without the benefit of speaking with you, from what the BBB report states, you seemed to have a very legitimate complaint regarding the $**. fee. (particularly in light of the fact that we had addressed the fees in Feb/March of 2012, and we both likely thought things were resolved with the e-statement).

From my perspective reading through your complaint, there really are at least two issues:
1. The fees
2. Our employees response to you - how we handled your question.

I have spoken with ***********, in our branch administration area regarding why this most recent $**. fee 'was assessed' to you. According to our records, your account was 'inactive' for the previous 12 months, thus the dormancy fee - while you may not agree with it, this is a legitimate fee assessed for inactivity on an account. The paper statement that was generated (when you had signed up for e-statements) is a puzzler to us that we are still researching.

I've also spoke with ***********, our Banking Center Manager at our Granger & Granger Martins Banking Centers, and she has/is digging into this further. She was not involved initially with your fee waiver request, and is speaking with various staff members who you may have interacted with. We have identified who assisted you when you came into the branch and closed the account. Regardless, ***** and I are both disappointed and apologize for how your concern was handled by our staff. We empower and depend on all of our people, myself included, to treat people with integrity and respect, give 'straight talk and sound advice' and always 'keep your best interest in mind'. Clearly, we failed you in how we handled your situation - please accept our apology, and offer to discuss with you in person, or over the phone.

I would like to discuss this further with you, if you desire. I can be reached at either of the numbers below, please feel free to contact my cell number, on which I can be reached 24/7.
Thank you, I look forward to hearing from you, and trust we can resolve this issue.
Manager of Central Region

Complaint Resolution: Company resolved the complaint issues. The consumer acknowledged acceptance to BBB.

01/13/2012Billing / Collection Issues
10/11/2011Billing / Collection Issues

Industry Comparison| Chart

Banks, Mortgage Brokers


What is a BBB Business Review?

We offer free reviews on businesses that include background, licensing, consumer experience and other information such as governmental actions that is known to BBB. These reviews are provided for businesses that are BBB accredited and also for businesses that are not BBB accredited.


BBB Reporting Policy

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.