Payday Pundit » GAO

Motley Fool: How to waste $36 billion

Payday Pundit — Tue, 04 Mar 2008 20:25:47 +0000

The Motley Fool picks up on the GAO report finding that, in 2006, consumers paid $36 billion in bank fees. The Fool is highly critical of the government but also critical of consumers who don’t understand how much they’re paying in fees.

How does this relate to payday lending? Storefront payday lenders collected $6.5 billion in fees in 2006. And payday lending customers understand exactly what they are paying per $100 for their two-week loan. Members of CFSA are required to post their fees on poster-size displays in large type.

Yet, nobody is calling for a ban on banks.

Full GAO report on bank fees now available online

Payday Pundit — Mon, 03 Mar 2008 20:19:34 +0000

GAO: BANK FEES: Federal Banking Regulators Could Better Ensure That Consumers Have Required Disclosure Documents Prior to Opening Checking or Savings Accounts

GAO: Bank fees skyrocket, lack transparency

Payday Pundit — Sun, 02 Mar 2008 06:34:18 +0000

A new GAO report coming out on Monday details rising bank fees and lack of transparency in fee disclosure. The report says overdraft protection fees increased 11% between 2000-2007. Excepts from Sunday’s Washington Post story on the report:

“Banks are failing to provide consumers with information about fees on savings and checking accounts even though federal rules require such disclosures.”

“The GAO report says the percentage of income at banks and thrifts derived from “noninterest sources,” which include fees, rose to 27 percent in 2006 from 24 percent in 2000. Increased consumer use of electronic payments, as well as increased marketing of automatic overdraft protection programs, are likely contributing to the trend, the report says.”

In comparison, members of CFSA, the national trade association of payday lenders, are required to display their fees on poster-size displays in all story locations.