A bank fee that's so insulting, it's unbelievable
If you sue your bank, you may be required to pay the bank's legal fees -- even if you win.
This post comes from Krystal Steinmetz at partner site Money Talks News.
Looking to settle a dispute with your bank? Your options are likely limited.
Chances are your bank has a so-called mandatory binding arbitration agreement in its checking contract -- the voluminous, 40-plus-page document that you signed and probably didn't read. (You're not alone. Ninety percent of consumers don't read all of it, according to MarketWatch.)
A recent study by the Pew Charitable Trusts found that 70 percent of banks, up from 58 percent in 2013, have verbiage in their contracts that prevents customers from suing the bank on their own or as part of a class-action lawsuit.
As if that's not bad enough, some banks require that consumers who bring suit against the bank will have to pay the bank’s expenses, no matter who wins the case, MarketWatch said.
You read that correctly: If you take your bank to court to settle a claim and you win, you may have to pay your bank's legal expenses. The "loss, costs and expenses" clause is included in the fine print of about 1 in 4 banks' checking account contracts.
According to the Consumerist, most large banks include the arbitration clause in their checking agreements, while smaller banks don't.
Check out Pew's ratings of the best and worst banks based on key consumer protections, including dispute resolution verbiage. Click here (.pdf file) to access Pew’s Check and Balances Report for 2014.
How does your bank rate for consumer protections in Pew's report?
More from Money Talks News
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
CardRatings.com's annual survey of people's credit-worthiness show that residents of states that were least affected by the recession are faring the best still.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'