In spite of reform efforts, a new report says, big banks are still choking customers with hidden charges to be able to make more profit. How many times have you needed more info on how to apply for a payday loan, and turned to a web search on "personal loans bad credit?" Your search is over, all the information you need is at MatchFinancial.
Extra hidden fees in spite of regulation
The Pew Charitable Trusts report, released Wednesday, looked to the practices of 12 major banking institutions over the last 18 months. According to the report's findings, many banks are still misleading customers and finding excuses to tag on additional costs.
The report looked at practices in Bank of America, Chase bank, Citibank, Wells Fargo, Capital One, Regions Bank, HSBC Bank USA, Branch Banking and Trust Company, TD Bank, PNC Bank, U.S. Bank and SunTrust Bank.
Does not matter that there is less
According to the report, though bank disclosures have shortened from an average 111 pages last year to 69 this year, inappropriate fees are still hidden within the bulk and sometimes-confusing language used in the disclosures.
It was also hard for consumers to find pertinent info since it was not on the site. To get a copy of it all, a consumer had to get a mailed document or go to a branch.
A card fee
A year ago, federal regulators capped the amount banking institutions are allowed to charge merchants for processing debit card transactions. As a result, Wells Fargo Bank, for example, saw a 32 percent drop in revenue from debit card purchases year-over-year.
It is more expensive to keep deposits too since getting insurance from the Federal Deposit Insurance Commission costs more now.
Lenders, says Pew, then started applying more hidden charges to consumers to make up for the lost revue. Charges for ATM withdrawals and for overdraft protection was among the most widespread ways banking institutions tried to recoup losses on the backs of depositors.
'Don’t have some inherent right'
Last year, Obama spoke on the issue saying:
“You do not have some inherent right just to get a certain amount of profit if your customers are being mistreated."
According to banking institutions, the prices are fair. Pew does not agree though. It is simply ridiculous that customers are dealing with more fees and higher fees because of laws that required banking institutions to make the fees more apparent and brought on banks to lose a profit.
Needing more regulation
To be able to keep banks from hurting consumers to get more cash, the Consumer Financial Protection Bureau is encouraged by the report to bring more legislation.
According to the report:
“An efficient market requires informed consumers who can make choices based on the product that best meets their needs. This is particularly important for an item as fundamental and significant as a checking account.”
Sources
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