Sign in Subscribe
Banks (Finance)

Senators Call for Transparency in Bank Account Fees

Strategic Insights

— 1 min read

Senators Dick Durbin and Jack Reed have taken a crucial step to protect American consumers by urging financial institutions to adopt a voluntary bank account fee disclosure form designed to make checking account terms and fees transparent and easy to understand. The move comes after bank giants like Bank of America and Wells Fargo rolled back or canceled planned debit card usage fees, only to introduce new hidden fees. The Senators are joined by Susan Weinstock from The Pew Charitable Trusts' Safe Checking in the Electronic Age Project, which has designed a clear and simple form for financial institutions to adopt.

Key Takeaways:

  • The Senators are calling on financial institutions to voluntarily adopt a one-page, easy-to-read model disclosure listing the fees and key terms for their checking accounts.
  • The median length of checking account disclosures is 111 pages, making it difficult for consumers to understand their account operations.
  • Failure to provide succinct and comprehensive data can expose accountholders to hidden risks.
  • The Pew Charitable Trusts' Safe Checking in the Electronic Age Project has designed a clear and simple form for financial institutions to adopt.
  • Senators Durbin and Reed have sent a letter to the Consumer Financial Protection Bureau asking them to require financial institutions to post on their websites a standardized, concise, and consumer-friendly disclosure form.
  • The Senators argue that transparency and competition are the pillars of a strong free market economy, and consumers have had enough of banks trying to sneak fees past them.
  • The Senators recognize that the Consumer Financial Protection Bureau has many important tasks currently underway, but urge them to prioritize transparency for checking account fees.

Statistics:

  • 111 pages: the median length of checking account disclosures customers are supposed to read and understand before opening an account.
  • One page: the proposed length of the model disclosure form for financial institutions to adopt.
  • Many: the number of tasks currently underway at the Consumer Financial Protection Bureau.

Sources:

  • Senator Jack Reed's office - News Release
  • The Pew Charitable Trusts' Safe Checking in the Electronic Age Project
  • Senator Dick Durbin and Senator Jack Reed's letter to the Consumer Financial Protection Bureau

Read more