Durbin promotes bank-fee disclosure document
URBANA — Financial institutions should adopt a clear, simple account-fee disclosure form that is easier for consumers to understand, U.S. Sen. Dick Durbin said Tuesday at an Illini Union news conference.
He said he has asked banks and credit unions, especially those serving Illinois college and university students, to adopt a one-page model disclosure form suggested by the Pew Charitable Trust that details bank fees charged to checking-account holders.
"I think students have a right to know what they're being charged," Durbin said. "If a bank is going to enjoy a favored status in dealing with a university in terms of where it can place its branches and what the relationship might be with an ID card, for example, I think it's only fair that their relationship with students be transparent and competitive.
"If you look at this form, you don't have to have a degree from a business school at the University of Illinois to understand it," he said. "It is very straightforward and direct, and it tells you how much you're going to be charged in terms of fees that you have to pay."
Durbin said Chase Bank and at least two credit unions have agreed to adopt the form voluntarily.
The UI's Urbana and Chicago campuses have a relationship with TCF Bank that provides students at the two campuses with free, PIN-based checking accounts and debit-card services through their identification card.
UI spokesman Tom Hardy said that university officials had contacted TCF Bank on Tuesday and asked that they follow the template for disclosing fees for checking and debit accounts.
"We haven't received a reply from TCF yet," Hardy said.
Meanwhile, an officer with the University of Illinois Employees Credit Union said his institution would adopt the Pew-recommended form.
"This is nice because it summarizes it into a single page the main things that someone faces with a checking account, the different fees and so on," Executive Vice President Greg Anderson said. "Those fees have to exist to support the products and services. But you can compare with it at least."
On another topic, Durbin indicated he might make an endorsement in the Democratic race in the 13th Congressional District. It features Bloomington physician David Gill and Greene County State's Attorney Matt Goetten. Springfield, Durbin's hometown, is in the 13th District.
"I'm going to be making a decision soon on that and I want to be sure that we field the strongest candidate," Durbin said.
He also said that he feels more confident about Democratic hopes of retaining the U.S. Senate next November, although he did not guarantee it.
"We are encouraged by a number of seats that we thought were certain to go to the other party. We're starting to look like we have more than a fighting chance," he said, citing races in Nevada, North Dakota and Massachusetts. "What looked very challenging looks better today."
Durbin also said he is far from making a decision about whether to run again in 2014.
"I'll look at the totality of circumstances that I face after the (2012) election," he said.
MoreIf there was pressure for banking institutions to adopt this, they would.... WITHOUT the government being involved.
Just another instance of big Government, and Dick Durbin, inserting themselves where they have no reason to.
Remember the $5/month disaster with the Bank of America (the "Durbin Admendment" to the Dodd/Frank Financial reform) that Dickie was in the middle of?
Yet, he keeps inserting himself where he doesn't belong.
Dick... do the people of Illinois a favor, and please retire.
The same thing where BoA had to back down after a customer revolt?
This form is not "big government." Durbin, in his position as a US Senator, is asking for banks to voluntarily use a form that easy for customers to understand. Some banks will as acts of good will and others won't.
The banks have this stupid notion that as long as their scams are in writing that they are ok. If I go hand a teller a note explaining that they are being robbed and put the proceedure in writing, a jury isn't going to buy it. I propose the following rules instead of the disclosure rules.
1. Banks may not charge to cash a check drawn on their bank.
2. People shall not be required to have bank accounts to transact business. Utility companies shall set up payment centers or contract with local businesses to accept cash payments like they used to.
3. Employers shall maintain a local bank account to allow employees to cash paychecks free, or set up arrangements locally for employees to cash paychecks for free.
4. Direct deposit, automatic bill payment or mandatory electronic funds transfer will be totally optional. No coercion, penalty or added costs shall be levied on those choosing not to use those options.
This is a good start. Make banking an optional service like it used to be and the banks would have to get their houses in order. We need to get back to the day when banks made their money by making sound loans with their deposits and not by bleeding customer with stupid fees.
Banks are a business....plain and simple. Some of what you are asking is that they provide a service to a non-customer for free. Please tell me of another business that would do this. You are right though....the new disclosures will not stop fees. No one reads them. The only thing that will stop fees is people becoming responible for their own accounts. You have options. If you don't like the rules at one bank, go to another one. Plain and simple.
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