Finance – Page 17 – Mouse Print*

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Bank Fine Print: You Pay for Our Lawyer (Even if We Lose)

June 29, 2012June 25, 2012 by Edgar (aka MrConsumer)

Pew Charitable Trusts released two studies over the past couple of years about checking account agreements that only a lawyer would understand.

Buried in these lengthy documents are some nasty clauses, including one like this:

*MOUSE PRINT:

Disputes Involving Your Account

You agree to be liable to us for any loss, costs, or expenses, including reasonable attorneyâ€™s fees, that we may incur as a result of any dispute involving your Account. You authorize us to deduct any such loss, costs or expenses from your Account without prior notice to you. This obligation includes disputes between you and us involving the Account and situations where we become involved in disputes between you and an authorized signer, another joint owner, or a third party claiming an interest in the Account. Also, it includes those situations where you, an authorized signer, another joint owner, or a third party take some action with respect to the Account which causes us to seek the advice of counsel, even though we do not actually become involved in the dispute. –PNC Bank disclosure

In plain English, this says that if they have to hire a lawyer because of a dispute relating to your account, whether you sue them or they sue you, or something else causes them to consult a lawyer, they can deduct the cost from your account without notice. They make no exclusion should you be right and win your case.

According to the Pew study, four of the 12 banks they examined had clauses similar to this, including HSBC Bank and TD Bank. They are asking the Consumer Financial Protection Bureau (CFPB) to look at issues like this, and require better disclosure or elimination of unreasonable contract terms.

For more information about this sneaky practice, you can read this LA Times story.

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Incredible Bank: “No Pain” Checking?

June 11, 2012 by Edgar (aka MrConsumer)

Incredible Bank is a teeny tiny division of a teeny tiny bank in Wisconsin, that has consistently offered very attractive interest rates on deposit accounts.

Last year, they were offering a checking account that paid 1.35% with “no pain.”

They even reimburse ATM fees nationally and offer free bill pay.

However, like most banks, they have some fees. And they warn that some fees might reduce earnings.

*MOUSE PRINT:

Just how painful are the fees?

*MOUSE PRINT:

They charge $20 per check? On a checking account? That’s pretty painful. Their explanation is that they offer free ATM withdrawals and free bill payments, so to keep costs low, they want to discourage the use of checks. So why is it called a checking account? A bank representative said it was because you could get checks printed on your own and use them with this account, thus providing a means of paying others.

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“If Your Credit Card Expires, We’ll Charge it Anyway”

March 5, 2012 by Edgar (aka MrConsumer)

To entice people to sign up for an annual subscription to their Entertainment coupon books, the company recently offered an enticement: pay just $10.50 for the 2012 book (and agree to buy the 2013 book, and those printed in subsequent years, for $5 off when they become available).

Like a book club, they say they will give you advance notice before the new book is shipped and give you an opportunity to cancel. That’s fair and reasonable.

To prevent some clever consumer from just cancelling the future editions in order to snag a bargain on this year’s book, they buried in the fine print, this bit of protection for themselves:

*MOUSE PRINT:

6. If you cancel prior to receiving your first book through the Annual Renewal program (2013 Edition) your credit card will be charged a $5 cancellation fee.

That also seems fair, and the consumer is still getting a bargain price on the 2012 book.

What seems to cross the line, however, is this:

*MOUSE PRINT:

5. If your Credit Card reaches its expiration date, your failure to cancel after receipt of our notification will constitute your authorization for us to continue billing your card.

What? They are going to send you the book, knowing that your credit card has expired, and deem this fine print provision to be your authorization to engage in this questionable practice?

Somehow, I don’t think that Visa and MasterCard would look kindly on a company that deliberately puts charges on a card it knows is no longer valid.