Time and Money: The Obstacles of Switching Banks

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Tuesday, June 12th, 2012

By Guest Blogger Francesca Chang

While 1 in 5 customers said they considered switching their money to a smaller or community bank, only 1 in 14 Americans actually did so.

Why? Because it takes time and money to move your money.

Here is abc15’s story on our bank switching report:

Consumers who wish to change banks face many obstacles, including:

  • The transfer of automatic deposits and debits to a new account
  • Wait times while automatic deposit and debit transfers are processed
  • Account closing fees
  • The risk of old accounts reopening and
  • Inadequate information about bank account closing policies.

One Bank of America customer, outraged at the short-lived $5 debit card fee, has yet to close his account and move on. He feels that the bank’s “incentives,” including fee waivers for using direct deposit and automatic bill pay services, have prevented him from transferring his money to another bank.

Despite these obstacles, it is still possible to move your money.

Check out our report to see how to do so safely: Trapped at the Bank: Removing Obstacles To Consumer Choice In Banking

 

 

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