The Credit Card Act has helped to protect us from punishing fees and interest rates on our credit cards. This leaves banks with a dilemma: how to make up for lost income. One way to make money is to add new fees and increase old fees on different types of bank accounts, and even some credit cards. Customers beware.
This has happened to me. Our bank accounts were linked to my father’s accounts and therefore qualified for the most benefits with NO fees. He had no monthly checking account fees, and no ATM/Debit card fees. After my father passed away, I needed to use his account to pay for his remaining expenses. I specifically asked if there was a minimum balance requirement on his account. They said there was not.
Imagine my surprise to see a $20 monthly maintenance fee on his account. I called the bank and found that I had been misinformed. Thankfully, they did refund the fee and we corrected the situation. I thought we were all set.
Then, the bank statement came over the weekend and there was another fee for having an ATM/Debit card. This fee was not for card use. This was a fee for the privilege of having the card. The card has not been used. In fact, I cut up the ATM/Debit card from my father’s account right after his death.
At this point, I should explain that the only reason the account is still open is for his pension. We are waiting for them to complete their paperwork (two months and counting). They need to reclaim some payments and make a final reassessed payment. If any of you have acted as an executor or administrator after the death of a loved one, you will understand why we must keep the account open.
After being hit with two unexpected fees, I went personally to the bank to discuss our accounts and the costs involved. I wanted to minimize, if not eliminate, all fees. The bank and I agreed to a different type of checking account. We chose a lower tier account with few fees. I also felt we could meet the requirements, which would eliminate the fees altogether. Talking with the bank manager and comparison shopping helped us make the right choice.
Bottom line: you need to be on top of your accounts. Read each and every statement in a timely manner. Check for accuracy, question anything that needs further explanation, and don’t be afraid to call and ask for what you want. You will never get anything if you don’t ask for it. Remember there is competition between banks and you can change to another bank or company that suits you better. But you won’t know if you need to make a change, if you ignore your statements.
Jill Russo Foster is the author of Cash, Credit, and Your Finances: The Teen Years. She provides practical tips for every day finances. Learn more about protecting your credit and living within your means, with Jill’s popular free reports and bi-monthly ezine, available here ==> CashCreditandYourFinances.com
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