Washington Post: Banks Improving on Fee Disclosure, But More Rules Needed, Pew Says
Banks are doing a better job of informing consumers about the costs associated with their checking accounts, but more regulation is needed to ensure that the terms are fair and transparent, according to a report issued by Pew Charitable Trusts on Thursday.
Pew researchers examined checking accounts offered by 36 of the nation’s biggest banks, including how effective they were in providing clear cost disclosures and reducing incidences of overdrafts in which consumers are charged a fee for spending more than they have in their accounts.
Ninety-seven percent of banks received high marks in at least one category, although none got a thumbs up across the board. Ally Bank received the highest marks, followed by Charles Schwab, First Republic Bank, Citibank and Bank of America. On the low end of the scale were First Tennessee Bank, Sovereign Bank, Union Bank, KeyBank and First Niagara Bank.
“While a majority of the banks [improved], there is still lots of room for improvement,” said Susan Weinstock, director of the Safe Checking in the Electronic Age Project at Pew. “The [Consumer Financial Protection Bureau] can take action in a number of ways to clear up some of these problems with overdraft.”
Read the full article at washingtonpost.com.