Lawmakers ask Banks to Simplify Fee Disclosure Documents
In recent weeks, the amount banks charge to consumers for services that used to be free has been the subject of considerable debate.
For example, major U.S. financial institutions such as Bank of America, Wells Fargo 
and JPMorgan Chase all either announced or began testing fee structures that would charge consumers a flat rate for any month in which they used their debit card to make a purchase. But the backlash from consumers was considerable, and many made good on threats to switch to a new, smaller bank, which would allow them to avoid paying fees for banking services that used to be offered at little or no cost. As a result, the major banks canceled their plans for the controversial fees.
But now two major U.S. lawmakers are working to increase the clarity consumers find when agreeing to a bank account. U.S. Senators Dick Durbin of Illinois and Jack Reed of Rhode Island, both Democrats, are encouraging the nation's top financial institutions to institute voluntary simplified fee disclosure forms that will give consumers a better understanding of the basic costs they face with a checking or savings account. Currently, the median length of a checking account disclosure stands at 111 pages.
"Consumers want a fair shake and better of understanding of what they're paying and why they're paying for it," said Reed. "Too often we hear about financial institutions changing the timing and amount of all kinds of different surcharges. It is time to bring these fees into the open because the best market is a transparent market, and that's why we think up-front transparent disclosures help consumers make well-informed choices and improve the entire marketplace."
Durbin and Reed also collaborated to send a letter to Raj Date, the official from the U.S. Department of the Treasury who is now heading up the new federal Consumer Financial Protection Bureau, urging him to institute a requirement for financial institutions to post simple fee disclosures on their websites. These lists would be standardized across the whole banking industry.
The CFPB is already working on standardized disclosure forms for other consumer financial products, such as home loans and credit cards. Currently, it is focusing its operational efforts on building the protections associated with the latter type of account moreso than others, including a national database of every credit card offer currently available
5-7-2012
by Chris Martin
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