(Image Source: My Bank Tracker )

 

BY LOGAN TITTLE

 

When was the last time you read through an entire bank disclosure? Or maybe the last time you were satisfied with overdraft fees? Well, Pew Charitable Trust did some research and found if you’re drawing a blank for those questions, you’re not alone.

 

KSWB explains why—

 

“Too many long, ambiguous documents, high fees for overdraft protection and confusing rules…there are an average of 69 pages in checking account documents.”

 

That’s a big drop from 111 pages back in 2010, when the banking industry caught heat from Congress and the Fed over confusing disclosures. But those disclosures are still too cluttered for most customers.

 

The report compares findings from Pew’s previous study two years ago. So far, not much has changed. The average overdraft fee remains at $35 and more checking accounts have even added an extended overdraft penalty—which has grown by 32%.

 

Another problem is how banks are charging overdraft fees, since there aren’t any federal rules on how banks process transactions. MSNBC explains —

 

“Let’s say you have $500 in your account. You write a series of checks that day: $25, $75, $125 and $600. If the bank processes those checks in order, you would overdraw once and pay one overdraft fee. But if the bank processed those checks from highest to lowest...the bank can hit you with four penalty fees.”

 

But KOMO reports a spokesperson for the American Bankers Association is questioning Pew’s findings—saying they should acknowledge that consumers have choices when dealing with their own accounts.

 

“...many banks now process withdrawals from low to high, or in consecutive order...financial institutions should not be required to handle them that way...people’s preferences vary, and some customers might want certain transactions processed from high to low."

 

The project’s director told ABC News —they're not trying to tell banks what to charge customers, but rather what banks should tell customers so they can see what they’re signing up for. Think nutrition labels for bank accounts.

 

“What we found is that consumers really need a disclosure box…You’d be able to look at accounts beyond banks and within banks, and decide this is the account that best meets my needs based on the terms the conditions and fees that suit you.”

 

So far seven banks have adopted the box.