Ways to tell if your bank is ripping you off
Last updated on March 3rd, 2022
Your Bank is Ripping You Off but You Just Don’t Know It Yet
Interacting with a bank has become a necessity in modern times. The services that banks have to offer are now essential parts of life that one cannot put off a monthly bank visit or two. No matter what purpose that interaction with the bank could be for, it can’t be denied that all of us would need it at some point or another.
While most banks will always have our best interests at heart, some have an unfortunate history and tendency of ripping off their customers and clients. When interacting with a bank, one must always be aware that this is a possibility, and should still be on guard.
4 ways to tell if your bank is ripping you off
Not all banks aim to rip people off. Those that do, however, have some tell-tale signs that they are up to no good. Here are 4 ways of telling if your bank is trying to rip you off.
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Customer service gives vague or evasive answers
It’s inevitable that you will eventually have to contact customer service for whatever purpose. While most customer service hotlines are helpful enough, some will purposely give evasive answers to your queries about finances. How do you know if the answers are evasive? If you get out of the call feeling more confused than you initially were, and you didn’t get any concrete answers, then the hotline did an excellent job of evading.
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There are a lot of extra charges
Statement sheets typically show a summary of charges and expenses. Check what these are and try to determine if these are really necessary or not. Some of these include ATM use charges, overdrafts, and many more. Some even have unjustifiable excessive charges for online banking use, which most other banks do not.
Try to monitor your monthly expenses on these supposed fees, and see if these get you anywhere. Doing this can help you decide whether it is worth staying with your bank or not.
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High overdraft fees
Many banks are known for excessively charging overdraft fees. An overdraft fee is incurred when you try to withdraw money above the remaining amount in the account. Some overdraft fees are reasonable, while some are too excessive. Make sure that you check the overdraft fees in your bank before you really commit to that bank.
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If your bank has arbitration clauses
This means that any misunderstandings and disputes will be settled by an arbitrator, and not a government court. This basically means that you can’t sue them, and these settlements can be a bit harder to manage.
When you sign with a new bank, check for the presence of an arbitration clause in the contract. This is a big red flag. Make sure that you read the fine print, as not reading the fine print is what most people do, and what gets them into trouble in case of a dispute with the bank later on.
