Senate Democrats continue push for simplified bank disclosures

“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.”

Durbin began working the issue last month with Sen. Jack Reed (D-R.I.) in trying to convince banks to nix their bulky checking account disclosures for a one-pager that outlines all the basic checking account terms and conditions — ATM fees, interest rates, overdraft penalties and account closing fees.

“We are pleased to be the first large bank to adopt Pew’s simple disclosure form,” said Ryan McInerney, CEO of Chase’s Consumer Bank. “We set out to be as clear and concise as possible. This is another important step we’re taking to improve how we serve customers across Chase.”

Durbin and Reed also sent a letter to Raj Date, acting Director of the Consumer Financial Protection Bureau, asking the agency to require financial institutions to post Pew’s simplified form on their websites.

“Instead of using hidden fees to treat their customers like ATM machines, banks need to be more transparent,” Reed said.  

“I hope more banks will get on board with this standardized form and, when we get a critical mass, it will be a real victory for consumers,” he said. 

Date said recently that the CFPB plans to launch a Know Before You Owe project focused on increasing checking account transparency.

 “With upfront and easy-to-understand information, consumers can comparison shop for the best deal for them,” he said. 

Many checking account disclosure forms average about 111 pages, according to research by Pew. 

“This can present a challenge to even the most financially savvy customers who are looking for new accounts or to responsibly manage the ones they currently have,” said Susan Weinstock, director of the Pew project.

 “Account holders need an easy-to-read disclosure document so they can be aware of the terms, conditions, and fees associated with their checking services.”

“Our nearly two million members now enjoy the benefit of using checking accounts whose terms and conditions are clearly and concisely disclosed,” said Jim Blaine, CEO of North Carolina State Employees’ Credit Union. “Upfront fee information empowers consumers to make educated financial decisions for themselves and their families.”

“Often times, hidden fees drive people out of the banking system,” said Frank Pollack, President and CEO of Pentagon Federal Credit Union. “Our more than one million members, many of whom are serving in the Armed Forces, now have the benefit of our disclosure document that fully lists our fees when they open their accounts. Our members can bank without the fear of being charged unexpected fees.”

Proponents argue that the form would encourage all financial institutions to compete based on clear information and are urging passage of legislation to make the practice mandatory. 

“I urge other banks to follow suit and take this important step in consumer protection, and I will continue pushing legislation to make it mandatory that they do so,” said Sen. Chuck Schumer (D-N.Y.).