Clark Howard's Tips
Many banks fail to disclose fees and rulesMarch 31, 2008
If you think that banks are lying to you, the feds now say that you're right! The U.S. Government Accountability Office -- the investigative arm of Congress -- sent out undercover agents to determine whether a sampling of 185 banks across the country lie about their fees and rules. The results? Banks did lie, or they would not provide a disclosure of fees about 80% of the time.
Think about the debit card con game for a moment. These little cards are massive profit centers for banks. Banks say they approve transactions you don't have enough money for as a "courtesy" to you. But what they really want to do is rip you off with an overdraft fee of $30-$40. The Washington Post reports that banks make $18 billion annually on this con.
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CLARK'S TIP TOPICS
Find more consumer advice in Clark Howard's book, "Get Clark Smart" |
The bottom line is that you have a right to get a price list at a bank, just like you would at a restaurant. Did you know that in banking circles, free checking is called "fee checking" behind your back? Banks use offers of free checking as a loss leader to fee you to death.
So if you're not good at keeping tabs on your balance, you need to become a cash person and buy with green. If you keep overdrawing anyway, you need to be more responsible and track your balance down to the penny. Some people think these suggestions sound quaint and very '90s, but what's the alternative? Clark has a teenager who has learned it all the hard way. She had a debit card at 15 and repeatedly overdrew it and got hit with fees. Now she's 18 and learned her lesson.
