Four Things Your Bank Will Forget to Discuss with You
Many bank institutions are still hunting for more prey.
Many major banks have been making the news more recently; this is due to their bad gambling predictions regarding mortgages and their overall poor mismanagement. It would be a very bad generalization and inaccurate to blame all banks for their wrongdoing. The larger banks have been predators preying on innocent consumers for a very long time, while constantly advertising that they care about their consumers. Banks are very vague about mentioning certain things to consumers that might hurt their reputation as a financial institution.
Four things your bank will forget to discuss with you.
#1. Debt Cancellation
While debt cancellation is not regulated as credit insurance, this product is extremely overpriced, but it usually serves the same exact purpose of insurance. When you are unemployed, debt cancellation will pay off your balance. This product is sold and advertised as a “point of sale”. Getting this type of insurance is risky and debt cancellation should always be cheap for the consumer.
#2. Monthly Fees
Banks have made it easier to identify the types of consumers they want by how much they charge for their monthly fees. Many consumers live from paycheck to paycheck and cannot afford to pay a bank’s transaction fees, ATM fees, and the minimum balance out of pocket. There are reputable banks in the market that do charge lower fees for their banking services.
#3. Overdraft Fee Protection/Lines of Credit
Do not be so quick to fall for the double talk that banks use very frequently about overdraft fee protection. You have to read your contract thoroughly. The larger banks are becoming more liberal in regards to their check payments, authorization of debit transactions, and overdraft policies. These large banks did this so you would not have enough available funds in your bank account to cover the expenses.
These banks are getting away with robbing their consumers and they have profited from these practices. The consumers are receiving higher overdraft fees that were illegally authorized and the banks will offer consumers a line of credit to finance the overdrafts. This is a very clever strategy created by many financial institutions across the country. The consumer is stuck with insanely high interest rates that range from 16% to as high as 29%. You have to monitor your account balances because the bank is not going to monitor it for you.
#4. The Teller Fees
Almost all banks have this philosophy; if you do not have a minimum of five figures in your bank account, you are useless to them. Banks have created this type of fee structure for the consumers that they want. If you desperately need or want to use a teller, do not pay for the privilege to use one. The bank does not care; some of these banks will charge you $3.00 or more per transaction for using a teller.
You must read all of the brochures your bank has given to you about their services. You need to pay close attention to the overdraft fees, fee per check, fee per teller transaction, and the requirements for the minimum balance for your account. Many consumers do not take the time to read all of the fine print in their contract, but you do not want to be charged ridiculous fees or be sucked by the bank to take out a loan you did not have take out at all. The customer is always right and you are the bank’s customer. The banks are supposed to serve you, not the other way around.
Credit Unions are an alternative for your financial needs.
If you want to avoid all of these fees completely, you have to go to a financial institution that is more about the customers and not about profiting from the customers. Credit unions are the perfect solution. Credit unions have lower fees and better rates than banks. Credit unions were designed to focus on the customer aspect of banking and not on the profitability aspect that many banks obsess over today. Credit unions generally have the same financial services that most banks have.
The majority of Americans can qualify to become a member of a credit union and, depending on the union, the membership is free. Some credit unions require a very small deposit of $25.00, but it is definitely worth it. Many Americans have not heard or seen anything about credit unions and that is why many of them are not aware of what they offer. Credit unions do not advertise and spend money to make profit from the mass media outlets like most banks do.