Recent Checking Account Disclosure Report Lauded by ClearOne Advantage Executives
Baltimore, MD, June 30, 2012 --(PR.com)-- Executives at ClearOne Advantage, a Maryland-based debt resolution company, are encouraged by a recent report from Pew Charitable Trusts that investigates the issues surrounding checking account disclosure practices, and supports Pew’s call for stricter industry guidelines and regulation to ensure transparency and customer satisfaction.
The report, part of Pew’s larger Safe Checking in the Electronic Age Project, was compiled through checking account disclosure data from two dozen of the nation’s largest banks and credit unions. In examining the data, researchers found that there continue to be key consumer banking disclosure practices that place customers at financial risk and potentially expose them to high and unexpected costs.
“With checking accounts serving as a fundamental part of most of our financial lives, it is absolutely critical that disclosure information, particularly concerning overdraft fees, be understandable and easy to use,” says Tomas Gordon, CEO of ClearOne Advantage.
Pew notes that 9 out of 10 Americans have checking accounts, and those account holders paid nearly $29.5 billion in overdraft fees in 2011. Discouraged by the fine print and confusing jargon of their financial institutions’ terms and conditions, consumers often struggle to understand the information or fail to completely read the forms.
The Pew report concluded that regulatory changes need to be put in place within the banking industry, allowing customers “transparency and protection from predatory practices.”
The key findings include:
· Financial institutions do not summarize important policies and fee information in a uniform, concise, and easy-to-understand format that allows customers to compare account terms and conditions.
· Financial institutions do not provide account holders with clear and comprehensive information about overdraft options and their costs.
· Certain overdraft fees have increased.
· All 12 banks either already reorder withdrawals from highest to lowest dollar amount or reserve the right to do so without notice to the customer, thus maximizing overdraft fees.
With their findings, Pew notes four policy recommendations that the Consumer Financial Protection Bureau should implement:
· Include a disclosure box for all checking accounts that clearly annotates all terms, conditions and fees and made available through bank branches and their respective online websites.
· Ensure that all overdraft options are clearly laid out, allowing consumers to make an informed decision about which plan is best for them.
· Make overdraft reasonable and proportional to the cost of the bank for providing the service.
· Prohibit banks from reordering transactions to maximize overdraft fees.
“In speaking with our clients who are resolving debt and re-establishing their financial independence, we often hear about their frustrations with overdraft fees and the confusing terms and conditions their banks have in place,” said Gordon. “We echo Pew’s call to action for the banking industry to lift the veil on their disclosure policies and ensure customer peace of mind and satisfaction.”
To learn more, visit ClearOneAdvantage.com.
About
ClearOne Advantage is a full-service debt resolution company providing resolution of credit cards and other unsecured debts. Our executive leadership team is comprised of financial industry professionals with expertise in many of the industries that provide consumer lending services, making ClearOne Advantage the obvious choice when looking to resolve debt. In addition, ClearOne Advantage is a technology leader with its AdvantagePOINT software platform, which is designed to provide clients with stream lined service. To learn more about the products and services that make ClearOne Advantage an easy choice in debt resolution, call 1-888-785-5376 or visit ClearOneAdvantage.com.
The report, part of Pew’s larger Safe Checking in the Electronic Age Project, was compiled through checking account disclosure data from two dozen of the nation’s largest banks and credit unions. In examining the data, researchers found that there continue to be key consumer banking disclosure practices that place customers at financial risk and potentially expose them to high and unexpected costs.
“With checking accounts serving as a fundamental part of most of our financial lives, it is absolutely critical that disclosure information, particularly concerning overdraft fees, be understandable and easy to use,” says Tomas Gordon, CEO of ClearOne Advantage.
Pew notes that 9 out of 10 Americans have checking accounts, and those account holders paid nearly $29.5 billion in overdraft fees in 2011. Discouraged by the fine print and confusing jargon of their financial institutions’ terms and conditions, consumers often struggle to understand the information or fail to completely read the forms.
The Pew report concluded that regulatory changes need to be put in place within the banking industry, allowing customers “transparency and protection from predatory practices.”
The key findings include:
· Financial institutions do not summarize important policies and fee information in a uniform, concise, and easy-to-understand format that allows customers to compare account terms and conditions.
· Financial institutions do not provide account holders with clear and comprehensive information about overdraft options and their costs.
· Certain overdraft fees have increased.
· All 12 banks either already reorder withdrawals from highest to lowest dollar amount or reserve the right to do so without notice to the customer, thus maximizing overdraft fees.
With their findings, Pew notes four policy recommendations that the Consumer Financial Protection Bureau should implement:
· Include a disclosure box for all checking accounts that clearly annotates all terms, conditions and fees and made available through bank branches and their respective online websites.
· Ensure that all overdraft options are clearly laid out, allowing consumers to make an informed decision about which plan is best for them.
· Make overdraft reasonable and proportional to the cost of the bank for providing the service.
· Prohibit banks from reordering transactions to maximize overdraft fees.
“In speaking with our clients who are resolving debt and re-establishing their financial independence, we often hear about their frustrations with overdraft fees and the confusing terms and conditions their banks have in place,” said Gordon. “We echo Pew’s call to action for the banking industry to lift the veil on their disclosure policies and ensure customer peace of mind and satisfaction.”
To learn more, visit ClearOneAdvantage.com.
About
ClearOne Advantage is a full-service debt resolution company providing resolution of credit cards and other unsecured debts. Our executive leadership team is comprised of financial industry professionals with expertise in many of the industries that provide consumer lending services, making ClearOne Advantage the obvious choice when looking to resolve debt. In addition, ClearOne Advantage is a technology leader with its AdvantagePOINT software platform, which is designed to provide clients with stream lined service. To learn more about the products and services that make ClearOne Advantage an easy choice in debt resolution, call 1-888-785-5376 or visit ClearOneAdvantage.com.
Contact
ClearOne Advantage
Daniel McEvily
1-888-785-5376
http://www.clearoneadvantage.com/
Daniel McEvily
1-888-785-5376
http://www.clearoneadvantage.com/
Contact
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