GAO: Bank fees skyrocket, lack transparency
March 1, 2008 | alternatives, best practices, industry, media coverage, research, Washington Post | Comments (0)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.
Setting the record straight in the Dairy State
February 29, 2008 | best practices, Capital Times, industry, media coverage, states, Wisconsin | Comments (0)An article pennded by Dave Zweifel, appearing in today’s Capital Times – out of Madison, WI — says that state legislators need to “place some protection for the folks who all too often get suckered into small loans that wind up with triple-digit interest rates.”
This accusation might make for good copy, but is far from the truth. Payday lenders have some of the most consumer friendly disclosure rules in the lending business. Our disclosure policy states that all CFSA member-companies will prominently display posters in their stores explaining their fees, and will post this information to their company websites. Knowing the fees means that no one is getting “suckered”.
