Hidden Risks
Report
In October 2010, a study of checking account terms and conditions was started to examine both the state of the marketplace and the effect of current regulations covering checking accounts.
Full StorySafe Checking in the Electronic Age
Project Contact
Project Focus:
Checking accounts play a vital role in the United States’ economy. They are the most basic and necessary financial product for Americans and often provide consumers entry into the financial mainstream. Nine in 10 adult Americans have checking accounts and use them to collect earnings, pay their bills, and to transfer funds. As vital as this product is for American families, many checking accounts contain hidden risks that can potentially harm accountholders.
The Safe Checking in the Electronic Age Project raises awareness, builds partnerships with industry and advocates for policies that reduce risks and allow Americans to responsibly manage their checking accounts. It provides the public with information about policies that promote a competitive marketplace in the age of electronic banking and foster a level playing field among financial institutions. The initiative educates the public and policy makers by analyzing current overdraft and deposit practices and disclosure provisions, as well as uncovering the hidden costs associated with many checking accounts. The project supports solutions that require depository institutions to
- provide customers information about checking account terms, conditions, and fees in a concise, easy-to-read, one-page format;
- provide accountholders with clear, comprehensive pricing information for all available overdraft options;
- make overdraft penalty fees reasonable and proportional to the bank’s costs in providing the overdraft loan; and
- post deposits and withdrawals in a fully disclosed, objective, and neutral manner that does not maximize overdraft fees.
Susan K. Weinstock
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Cora Ganzglass
