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Should Regulations Prohibit Early Closure Fees?

Friday, February 10, 2012 - 6:43 AM
Should banks be prohibited from charging closure fees? This Boston Globe article has a good review of the issue:
The fees, while not new, are attracting more scrutiny from consumers, lawmakers, and regulators as customers have become more aware and increasingly disenchanted with new and higher fees imposed by banks. US Representative Brad Miller, a North Carolina Democrat, recently introduced legislation to prohibit banks from charging customers fees to close a personal checking or savings account. “It is really hard to change banks,’’ Miller said.

All of the banks mentioned in the article only charge closure fees if accounts are closed within a certain number of months after account opening. Bank officials interviewed in the article claim the main reason for these fees is to discourage people from taking advantage of promotions and then dumping the accounts as soon as the bonus is credited. Will regulations that prohibit any closure fee discourage banks from offering promotions? I would prefer lawmakers focus on unfair CD practices.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
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