Banks Get Better at Hiding Charges
Published: Friday, 8 Jun 2012
By: Richard Satran
Personal Finance Editor
Overdraft fees that banks launched in recent years with little notice to consumers have not gone away despite efforts by consumer groups and regulators to end a practice that generated billions in fees from unwitting customers.
Instead, two new studies show, banks are charging more, hiding the fees deeper than ever and making it difficult to have charges reversed.
Fees in the latest year totaled $29 billion, according to Moebs Services. And the charges are rising again without customers’ awareness, said the advocates.
Notice of pending charges are buried in bank account consumer disclosures that average 69 pages, said Pew Health Group in a report released Friday. For consumers who complain, the banks require “binding arbitration” through industry channels, not independent regulators, a practice that Pew said discourages customers from being reimbursed.
“Consumers are expected to wade through long, confusing documents and may be subject to steep, unexpected fees,” said Pew project director Susan Weinstock.
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