Illinois’ Largest Bank, First to Clearly Disclose Checking Account Fees to Their Customers
WASHINGTON, D.C.–(ENEWSPF)–December 15, 2011. U.S. Senators Dick Durbin (D-IL) released the following statement today after Chase, the nation’s largest bank, announced it will voluntarily adopt a disclosure form designed to make checking account terms and fees transparent and easy for consumers to understand, as he has been urging.
A copy of the form, developed by The Pew Charitable Trusts’ Safe Checking in the Electronic Age Project, is attached. It outlines all the basic checking account terms and conditions – including ATM fees, interest rates, overdraft penalties, and account closing fees — in a concise, easy-to-read, one-page format. Currently, the median length of checking account disclosures is 111 pages, according to a Pew study of the nation’s 10 largest banks.
“Chase’s decision to voluntarily adopt a simple and clear fee disclosure form will help consumers and shows that transparency and fairness are a good business plan,” Durbin said. “Giving consumers clear, upfront and accurate information about the fees that they will be charged will allow consumers to make sound financial decisions. As we’ve seen over the last few months, consumers are demanding they be treated fairly and I’m pleased the nation’s largest bank is listening. It’s time for the nation’s other banks follow Chase’s lead.”
Chase is the largest bank operating in Illinois. Last month, Senator Durbin called on the nation’s financial institutions to voluntarily simplify checking account fee disclosures. Durbin has also asked the Illinois banking and credit union communities to voluntarily adopt the fee disclosure form. A copy of that letter is also attached.
Prior to Chase’s announcement, the Pew disclosure form had been voluntarily adopted by Pentagon Federal Credit Union and the North Carolina State Employees’ Credit Union.