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My Pet Peeve: Online Truth-In-Savings Disclosures (Or Lack Thereof)

Bozo
  |     |   1,375 posts since 2011

As I've noted today over at the Blog, and many times past in both the Blog and this Forum, one of my pet peeves is when a financial institution makes it difficult, or even impossible, to ascertain the terms and conditions governing your account(s). These terms and conditions are variously referred to as Truth-in-Savings disclosures, Account Disclosures, or Member Disclosures. Whatever they might be called, they are designed to set forth the terms and conditions applicable to account-holders above-and-beyond the basics (such as rate and term of a certificate).

Of late, I have noted more and more institutions which give short-shrift to providing these disclosures online. Either they are incomplete, hard to find online, or refer to other disclosures with no link. I don't know whether the trend is due to sloth or ineptitude, but it's irritating.

Hint to financial institutions (and I know many marketing folks at banks and credit unions follow this blog): Cut us some slack. Serious savers want serious information (including all, I repeat all, the terms and conditions of our prospective accounts with you), they want it available online, and in one document, which is easy to find. While PenFed's disclosure is not perfect, I would suggest it as a template. Patelco's "Member Handbook" is also not perfect, but it is a classic plain-English, easy-tp-read, stand-alone document. I haven't reviewed StateFarmBank's document in quite some time, but it seemed to have no problem rolling everything into one readily-accessible document.

Bottom line: I don't want to have to call a CSR, then be routed to another desk, and put on hold, just to ask that somebody snail-mail me something you could post online.

Just my $.02

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14


ChasR
  |     |   287 posts since 2013
I think the Truth in Savings Act should be amended to provide that any bank or credit union that advertises deposit accounts via an Internet site, whether or not it has an online application feature, should post a complete TISA disclosure for those accounts on its site. The current law allows institutions to wait until after you've opened and funded you account to disclose its terms and conditions when the application is by mail or over the phone. Also, some don't even bother to comply with the current requirements. It doesn't give me much confidence that the bank or credit union is complying with other rules, like keeping accurate records of accounts.
However, given the current penchant for "deregulation," I don't think reform is in the offing.
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Bozo
  |     |   1,375 posts since 2011
Charles, my "hint" to the marketing folks was a gentle nudge to transparency and efficiency, whether required by regulation or not. For example, would you buy a used car "with a warranty" before you found out what it covered, how long it lasted, and who was issuing it? I suspect not. The folks in the Legal Department can easily consolidate all terms and conditions into one document. The IT folks can then post the document online, with a conspicuous link.

The concept of receiving the complete "terms and conditions" of a contract only after entering into it is somewhat bizarre.
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Ally6770
  |     |   4,307 posts since 2010
I remember when a customer would sit down at a desk to purchase a CD. The CSR would go through the terms and conditions with the customers and each customer was required by law to receive a copy. How things change. But there is no reason why the institutions cannot or will not mail a copy to the customers after they read them Not everyone has a printer.
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Bozo
  |     |   1,375 posts since 2011
Ally6770, the last time I transferred an IRA CD, to Patelco (from USAA), I actually (a) went to the local Patelco branch, (b) sat down with a branch officer, (c) went through the Members' Handbook (the Truth-in-Savings Disclosure) with her, then provided her (personally) with all the information she needed. After that, she filled out the transfer form, I signed it, and that was that. That's the way we dinosaurs like it done.
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