Post by ck4829 on Aug 19, 2016 15:36:52 GMT
People with low checking account balances pay over $500 a year in fees
Despite several government regulations to help protect consumers, checking account fees are soaring for people with low balances.
A cash-strapped consumer — defined as one whose account frequently dips below $0, who opts-in to debit card overdraft often, and doesn’t have direct deposit — pays roughly $522 a year in fees to maintain his checking account, up from around $470 last year, according to a report by the personal finance website WalletHub. And consumers could pay as much as $810 a year in such fees. The different fees depend on the bank, the services the customer opts for, the minimum balance and other factors.
WalletHub also found that the average bank checking account has approximately 22 total fees, and 60% of accounts have 20 to 40 different categories of fees. “With certain checking accounts charging close to 50 different fees, it’s nearly impossible to keep track of the growing structural complexity of this supposedly basic banking tool,” the report said.
www.marketwatch.com/story/many-people-still-pay-over-500-a-year-in-checking-account-fees-2016-08-18
This is a clear example of a 'cudgel', something to punish a group of people for their status.
Despite several government regulations to help protect consumers, checking account fees are soaring for people with low balances.
A cash-strapped consumer — defined as one whose account frequently dips below $0, who opts-in to debit card overdraft often, and doesn’t have direct deposit — pays roughly $522 a year in fees to maintain his checking account, up from around $470 last year, according to a report by the personal finance website WalletHub. And consumers could pay as much as $810 a year in such fees. The different fees depend on the bank, the services the customer opts for, the minimum balance and other factors.
WalletHub also found that the average bank checking account has approximately 22 total fees, and 60% of accounts have 20 to 40 different categories of fees. “With certain checking accounts charging close to 50 different fees, it’s nearly impossible to keep track of the growing structural complexity of this supposedly basic banking tool,” the report said.
www.marketwatch.com/story/many-people-still-pay-over-500-a-year-in-checking-account-fees-2016-08-18
This is a clear example of a 'cudgel', something to punish a group of people for their status.