Checking account disclosures – most americans demand better disclosures

Pew Charitable Trusts had conducted a survey and published the results sometime earlier this year. The study included ten of the nation’s biggest banks and it was shocked to find that the average length of the checking account disclosures ran into a whopping 111 pages.

The non-profit had made some recommendations at this point, in order to simplify these crucial disclosures and streamline the entire process. However, as per the results of the new survey it has become abundantly clear that most Americans are in agreement that banks need to come out with better disclosures. Hence, Pew is trying its best to push the CFPB or Consumer Financial Protection Bureau to bring down the amount of paperwork stating that consumers find it difficult to decipher the information that is contained in these disclosures.

Around 75% of the American population has welcomed the suggestions made by Pew. These regulations are aimed at making checking account disclosures more comprehensive and clear as well. Around 81% of the Democrats had responded positively, two-thirds of the Republicans as well Independents also were in favor of these stricter regulations regarding disclosures on checking accounts. Even the Tea Party supporters stated that they supported increased disclosures, and that included 62% of the respondents.

Susan Weinstock, the Director of Safe Checking in the Electronic Age project at Pew Charitable Trusts has stated that it is difficult to do a comparison shopping just based on information such as minimum balance requirements or the policies and monthly fees, since you can never figure out what they really are. She also adds that something similar to the Schumer Box has been proposed by Pew and the credit card issuers are supposed to include this in their marketing materials as well. The layout of this box is such that it will spell out all the important terms and conditions. The information that is included in the Schumer box is the same for all issuers, and hence consumers can have a fair chance at making a comparison of what various cards have to offer.

Consumers will also get information on what would happen if they were to overdraw from their accounts. Banks were forced by the Fed last year to bring in some changes in the way they operated the overdraft programs. They were asked to stop the practice of giving customers the automatic option of availing the overdraft facility, which was by far the most expensive way of processing them.