We’re featuring the worst banks in America to help you find out which banks might not be the best option for you.Our list of the worst banks in America is based on customer reviews sourced from the Better Business Bureau (BBB) and Consumer Affairs to gauge customer sentiment. We also considered data from FairShake, which researched the most hated banks in the US on a state-by-state basis.
When it comes to online reviews of businesses, we have to keep in mind that they tend to be slanted very negatively. Simply put, customers who have a good experience with a business usually won’t bother to leave a review, while disgruntled customers are much more likely to share their frustrations with the company.
However, online reviews can still give us a sense of overall customer satisfaction when we compare the reviews of different businesses against each other.
Key takeaways:
- Reviews from platforms like the BBB and Consumer Affairs contribute to identifying the worst banks in America but may lean heavily toward negative experiences.
- Data from FairShake highlights Wells Fargo as the most hated bank in 9 states, earning a concerning 1.06/5 rating from BBB customer reviews.
- Credit One garnered a staggering 55% ratio of 1-star ratings on Consumer Affairs, showcasing the highest proportion among the banks listed.
- Bank of America frequently appears on lists of the worst banks, sharing the title of most hated in 9 states with Wells Fargo. In 2023, it settled for over $250 million due to several violations discovered by the CFPB.
- US Bank faced scrutiny and a $37.5 million penalty in July 2022 for allegedly opening accounts and credit lines without customer consent.
The worst banks in America of 2024
It’s important to keep in mind that even if a bank is featured here, that doesn’t mean it should be avoided at all costs — these are still major businesses with large customer bases, and might be able to serve your banking needs just fine. However, it would be prudent to be a little more thorough than usual in your research before deciding to become a client of one of these banks.
1. Wells Fargo
BBB customer review rating: 1.06/5
According to data from FairShake, which collected information on a state-by-state basis, Wells Fargo is the most hated bank in 9 different U.S. states, which was tied for the worst result out of all banks analyzed by the site. On Consumer Affairs, 45% of all customer ratings for Wells Fargo are 1-star ratings.
In 2016, Wells Fargo lost its accreditation with the Better Business Bureau and the bank is rated only 1.06 out of 5 according to customer reviews left with the BBB. In 2021, the Office of the Comptroller of the Currency issued a cease and desist against Wells Fargo, requiring the bank “to take comprehensive corrective actions to improve the execution, risk management and oversight of the bank’s loss mitigation program”.
2. Credit One
BBB customer review rating: 1.11/5
Credit One has very poor reviews from Consumer Affairs users, as a whopping 55% of consumers who left a review gave the bank a 1-star rating. This is the highest ratio of 1-star reviews among all the banks featured in this article.
According to the BBB, their files indicate that Credit One bank “has a pattern of complaints concerning billing/collection issues”. We have also found several customer reviews on Trustpilot complaining about poor customer service from Credit One.
3. Bank of America
BBB customer review rating: 1.06/5
Bank of America is quite frequently found on lists of the worst banks in America. Per FairShake, Bank of America is the most hated bank in 9 U.S. states, which makes it tied with Wells Fargo. According to Consumer Affairs data, 47% of users who left a rating gave Bank of America a 1-star rating.
In July 2023, Bank of America agreed to pay more than $100 million to its customers and $150 million in penalties to the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency. According to the CFPB, they discovered several violations such as double-dipping on fees, withholding bonuses that were promised to credit card customers, and misappropriating the personal information of clients.
4. Chase Bank
BBB customer review rating: 1.1 / 5
Chase Bank is yet another bank that’s quite frequently cited as one of the worst banks in America. However, it’s also the country’s largest bank, so it’s not too surprising that you’ll be able to find plenty of negative reviews online due to the sheer size of its customer base.
42% of Consumer Affairs users who left a Chase Bank review gave the bank a 1-star rating. According to FairShake data, Chase Bank is the most hated bank in five different U.S. states.
5. US Bank
BBB customer review rating: 1.1 / 5
On Consumer Affairs, 39% of consumers who left a US Bank review rated the bank with 1 star. US Bank is also the most hated bank in three separate states, according to FairShake.
In July 2022, US Bank settled with the Consumer Financial Protection Bureau (CFPB), which alleged that the bank opened checking accounts, savings accounts, lines of credit, and credit cards after illegally accessing customer information and without obtaining the permission of customers first. As part of the settlement, US Bank paid a $37.5 million penalty.
Which banks are in trouble in 2024?
In 2023, we saw the failures of three United States-based banks — Silicon Valley Bank, Signature Bank, and First Republic Bank.
However, the collapse of these banks did not have major repercussions on the US banking system. Philip N Jefferson, a member of the Board of Governors of the Federal Reserve System, said in May of 2023 that “the overwhelming majority of banks have strong balance sheets with limited leverage, high levels of loss-absorbing capacity, and healthy liquidity”. With the interest rates projected to come down throughout 2024, the pressure on banks with not the strongest balance sheets will only further reduce.
The bottom line
Hopefully, our list of the worst banks in America helped you find out which banks might be better to avoid or at least think twice about using them. While most of these banks will be able to meet the needs of the average customer just fine, it’s worth taking a closer look and conducting some extra research if you’re considering opening an account with one of these banks.
If you’re a cryptocurrency investor, make sure to check out our list of the best crypto-friendly banks.
