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Posted: 3:08 p.m. Monday, Feb. 20, 2012
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By Jeff Smith
CHARLOTTE, N.C. —
Bank of America and Wells Fargo lost nearly $800 million combined last fiscal quarter. It was due in part to new regulations on debit card fees.
But now banks are trying to recoup that money through other fees.
Many customers say they are fed up with the fees.
Gary Wright served overseas with the Marines, fighting in Somalia. At a recent job fair, he said he's now fighting a different kind of battle.
“It's just a battle, waiting to get an email or waiting to hear the phone ring,” Wright said.
Wright has been struggling for months to find a full-time job. Without a steady income, he thought it would be best to cancel his automatic debit transactions for things like electricity and cable.
He was slapped with five separate fees for stopping those automatic payments, totaling nearly $250. That's in addition to his $9-a-month account maintenance fee.
“It's a fee that you can't get around it to keep your account in good standing,” Wright said. “It's, you know, it's their rules.”
Many new fees have popped up over the past few months.
Bank customers face nearly 50 different potential fees on a checking account, even for things like requesting paper statements and closing an account.
Wright said he didn't know about the fees he'd face, which were explained in fine print somewhere in his bank disclosure packet.
“It's a lot of fine print to read through,” he said.
Eyewitness News looked at Wells Fargo and Bank of America's websites. The most common fees are clearly explained, but some charges are hidden in footnotes.
“There's a lot of people, unfortunately, hurting right now,” financial adviser Terry Horneman said.
Horneman said fee disclosure forms for the biggest banks can be more than 60 pages long.
“The wording, the language, the verbiage is very hard for them to understand,” Horneman said.
A new federal agency created a few months ago is supposed to make sure customers aren't confused by banking practices.
Sen. Kay Hagan has been an outspoken supporter of the Consumer Financial Protection Bureau.
Eyewitness News asked her if it's doing enough.
“Is it necessary to have a packet this big to explain fees to a customer?” Eyewitness News asked.
“I doubt many customers will actually be reading that information,” Hagan said. “That's why what we're looking for is something very short.”
Hagan wants to see a consumer-friendly form, printed on one piece of paper.
“Why isn't that already in place?” Eyewitness News asked.
“Well, the director just got appointed last month,” Hagan said. “And the agency is brand new.”
Hagan said she'll push for change on Capitol Hill.
Click here to read a report about the impact of bank fees on the average customer. Click here to see a report summary.
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