Bank Fees, Terms & Financial Disclosures
The FDIC Reminds Consumers To Read Bank Financial Disclosures And Statements Provided With Banking Services To Ensure Consumers Know What Is Available To Them, Along With Any Associated Fees And Benefits
Bank Financial Disclosures
Federal and state laws require banks to provide documents to consumers about account and loan offerings. These documents, called disclosures, contain important information about the terms, fees, and interest rate applicable to your accounts. While some of the disclosures are lengthy, it is important that you read and understand them. If you don’t have a copy of the disclosures discussed below, contact your financial institution.
The following are some disclosures that are important to review:
Deposit Disclosures
Your deposit account disclosure, also known as a truth in savings disclosure, was given to you when you opened your checking and/or savings account. It tells you about the annual percentage yield (“APY”), interest rates, minimum-balance requirements, account-opening information, and fees. You may receive additional disclosures about your deposit account upon request, if certain terms of the account change, or if your bank sends a periodic statement. A review of these disclosures will allow you to better understand your account terms. You can find more information about deposit accounts and disclosures by clicking Choosing and Using the Right Bank Account.
Loan Disclosures
For your loans and credit cards, you will have received a truth in lending disclosure. It will tell you about the annual percentage rate or APR (the cost of credit expressed as a yearly rate as a percentage), the finance charge (the cost of credit, including interest and certain fees, expressed as a dollar amount), the amount financed (the dollar amount of credit provided to you); and the total of payments (the sum of all the payments that you will have made at the end of the loan). The disclosures for a mortgage loan will include additional information, including whether or not you have a prepayment penalty.
Privacy Disclosures
Another disclosure you will want to review is your bank’s privacy disclosure. This document will tell you with whom your bank can share your financial information and for what purpose. It will also tell you whether or not you can opt-out of any sharing, and if you can opt-out, how to do so. For more information about your privacy disclosure, please click Your Rights to Financial Privacy: How to Stay Informed.
Additional Resources
Consumer Financial Protection Bureau (CFPB), What is a Truth in Lending Disclosure?
National Credit Union Administration (NCUA), Why Reading Account Disclosures is Important
Federal Reserve Bank of St. Louis, A Closer Look at Credit Card Disclosures
Federal Reserve Bank of St. Louis, Credit Card Statements Explained
Source: FDIC.gov
Kehoe Law Firm, P.C.
