BASIC BANKING ACCOUNTS NEARLY 9 TIMES CHEAPER THAN PRE-PAID CARDS AND CHECK CASHERS
NYPIRG's Back to Basics report blasts pre-paid MasterCards and pre-paid Visa Cards and New York City check cashers for charging consumers $300+ annually in fees to use their basic financial services.
"New Yorkers need low-cost banking options. The alternatives are exceedingly predatory." said Tracy Shelton, NYPIRG consumer attorney, "Also, banks should do more to reach out to consumers who may not be aware that there are low-cost banking alternatives available."
Key report findings include:
(1) Fees for using New York City check cashers and pre-paid cards can add up to over $320 per year just for basic usage of these financial services (compared to $36 per year for basic usage of basic banking accounts as prescribed in New York State's Lifeline Basic Banking Law and the New York State Banking Department)
(2) Despite the statute requiring promotion of basic banking accounts, most (66%) of the bank branches surveyed did a less than adequate job of promoting their basic banking accounts
(3) Basic banking accounts can become very expensive, nearly $270 per
year, if accountholders rack up fees by exceeding the transaction limits,
using foreign ATMs and/or making PIN-based debit card purchases