Move to simplify disclosures governing checking accounts in the pipeline

In recent times, learning more about the checking accounts of various banks implies going through pages of fine print trying to understand the hidden implications of the rules and regulations mentioned. The fact that each bank has its own set of terms and rules that customers need to adhere to has made the entire process time consuming and laborious. However, thanks to a move by Pew Charitable Trust, this may soon become a thing of the past and customers may be able to breathe a sigh of relief.

The Pew Charitable Trust which is non-profit organization has been pushing for a uniform system that allows customers to understand the fine print governing the bank accounts easily. Consumer issues and public policy are among the key issues that have been surveyed and studied by this organization recently. One of the evident results of the study is that customers are still finding it tough to compare checking accounts from various banks to find the right one for their needs.

As a part of the study, disclosure statements from 12 leading banks across the country were surveyed by this trust. This has revealed the customers have to skim through at least 69 pages of these disclosure statements. Of the 12 banks that were a part of the study, seven banks with long disclosure statements were based out of Connecticut.

Susan Weinstock, the director of the checking account study, said that based on the findings of the study they decided that there was an impending need for a nutrition box that could simplify the checking account disclosures. She said that the Trust intended to work on behalf of the consumers to make it easier for them to shop for checking accounts.

For a long time, consumer advocates have pointed out that the disclosures being drafted by banks are too difficult for customers to follow, thus giving an option to the banks to profit from the various fees they levy. However, banks have been vehemently denying this charge. This study from Pew clearly highlights that there is a need for change in the immediate future.