The EverBank Gold Story
March 13th, 2010WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Disclosure: I have no relationship with EverBank.
Dozens of blogs are reporting that EverBank has changed the terms and conditions with regard to their Non-FDIC Insured Metals Select product.
The typical way that stories like this work is that one goldbug uses another goldbug as a source and on it goes. I decided to authoritatively verify this one before running it on Cryptogon. I went over to EverBank to read their terms and conditions.
The changes, cited on dozens of sites, weren’t present on EverBank’s site.
I sent an email to EverBank:
Hello,
I am a blogger and I am trying to verify recent changes that were
supposedly made to the terms related to your Non-FDIC Insured Metals
Select product.
Several sites are reporting that the following changes were made:
“Non-FDIC Insured Metals Select Changes” –
Section 6.3.7. General Terms: We have added language clarifying our
right to close your account. We may close your Metals Select Account at
anytime upon reasonable notice to you. If we believe that it is ncessary
to close your account immediately in order to limit losses by you or us,
we may close your account prior to providing notice to you. Notice from
us to one of you is notice to all of you. If we close your account, we
reserve the right to convert your Precious Metals to U.S. dollars and
tender the balance to you by mail.
—
I do not see this language in your terms sheet:
http://www.everbank.com/000Terms.aspx
Is the language above actually EverBank policy?
Thank you,
Kevin Flaherty
cryptogon.com
In about an hour, I received this response from EverBank. I have added emphasis in bold:
Yes, the change was made to our Terms and Conditions, but we have since
pulled this language from our T&Cs. I appreciate you doing some
research on this issue. Several bloggers seem to have picked up this
story and ran with it, never even asking about the language. The
following is the response our President, Frank Trotter has been sending
out in response to these blogs and newsletters:
“We have noticed some blog and newsletter comments concerning the new
Terms and Conditions for our EverBank Metals Select accounts. As part of
our periodic review of these contracts we recently standardized and
consolidated the Terms and Conditions for all EverBank accounts and
products. In connection with this process, we have included the new
language in Section 6.3.7.3 of the Terms and Conditions that has been
quoted in some commentary.
This language was not intended to allow EverBank to close your Metals
Account arbitrarily or without good reason. This technical contract
language was added to clarify EverBank’s rights in the event that
unforeseen circumstances necessitated a change in EverBank’s ability to
act as custodian for precious metals purchased by you through EverBank.
Given the concerns that have been posted and the fact that we do not
foresee any likely circumstance that would affect our ability to
continue to serve as custodian for your precious metals, we are in the
process of deleting Section 6.3.7.3 from the EverBank Terms and
Conditions in its entirety and notifying customers.
As a reminder you can request that metals held in any EverBank Metals
Select account be shipped to you (in the case of allocated accounts) or
converted to a specific physical form and shipped to you (in the case of
non-IRA pooled accounts) at any time.
I hope that this clarifies the matter and invite those with further
questions to contact the World Markets desk directly.
Thank you –
Frank Trotter, President, EverBank Direct”
Please don’t hesitate to contact me with any additional questions.
Again, I appreciate you doing the legwork to verify the information.
Thanks,
Chris Gaffney, CFA
Vice President
Ah yes, the old unilateral altering of the CONTRACTUAL terms and conditions by the more powerful and energetic party trick. Wouldn’t it be great if we could unilaterally alter our cell-phone and ISP contracts to collect punitive damages for invasion of our privacy? Or maybe graduates who can’t find jobs could unilaterally alter the terms and conditions of their loans. Of course, these parties always “reserve” the “right” to alter the terms and conditions for a deal they engineered and drafted in the first place. Since they made the thing, they also think that gives them right to unilaterally change it. But this behavior is just another example of the routine mockery that is made of contract law between big organizations and individuals, where the big guys get to run roughshod over the little guys, all under the fig leaves of various “laws.”
If you don’t hold it, you don’t own it.
What do you expect? They’re a bank. It’s right there in their name. Don’t even bother with the fine print, just go ahead and assume they’ve got a license to screw you.
I used to have some CDs with those guys. Glad to have them out of my hair, finally. Their rating on The Street, by the way, is “C,” down from “B-” when I did business with them. Time for some new stress tests…
Ya, I had Everbank too for awhile. Got out of there by the hair of my chinny-chin-chin (that’s from an old nursery rhyme- I think the 3 Pigs).
Didn’t understand the carry trade to well. 🙂
I spent about an hour this weekend trying to understand the fine print on the back of my credit card statement. In December, I paid that balance off, but then spent a shit load of money.
Still can’t figure out why I was charged interest when I paid the prior balance off.
Guess I’m going to have to experiment. Pay more than what I owe, and then see if the company charges me interest. If that happens, I am going to cut it in half and say kiss my ass goodbye and pay effing cash through Paypal..eg, pay as you go.
My Dad humbled me years ago with a credit card sermon. You want to be on the side of the ledger where people owe you money, he said. I’ve tried to live by Dad’s dictum for years, but in the last one, got in over my head.
That all countries, nations, and peoples had been taught to do similarly. This funny money is why the world will go through its hell this summer. And Everbank, you too will be all tied up in your underwear if you are playing with your investors. Good luck folks. But I’d say get on down the road.
Store your money in any place other than a bank. Dig a hole out in a hole in the yard (give those you want to find it a map – of course don’t email or talk on the phone with this info- probably best to deliver the info in person if able to), wherever- just don’t store it ALL in ANY BANK. Keep some for yourselves. Hear me?