This article was originally posted on MyTopBusinessideas
1. Handle the Information about Bank Fees and Hidden Charges with Levity
Banks are in business to make profits and they take advantage of ignorant customers in the bid of making profits. One of the ways banks rib you off your money is by deliberately handling the information about bank fees and hidden charges with levity. Marketers that work with banks have been trained to sweet talk their customers into collecting loans, collecting overdrafts (cash advance), opening special accounts and signing other special package without emphasizing on the fees and hidden charges it will attract.
In other to prevent this from happening to you, ensure that you ask all the questions that will enable you have good understanding of all the bank charges and any other hidden charges. If you are not comfortable with it, you can pull out from the deal. That is only when you can make informed decisions.
2. Increase the Costs of Maintaining Your Bank Accounts
In the bid to market their products to you, banks ensure that they step down their account maintenance charges (bank fees) so that they can attract customers. But the truth is that most people don’t even bother to check the percentage increase in the cost of maintaining their bank accounts after a year or more. Banks take advantage of this to increase these charges to as high as 300 % after a year or more in order to rip their customers off.
In other to prevent this from happening to you, ensure that you request for the modalities for increasing the cost of maintaining your accounts and if you are not satisfied, threaten to close your account with them. For example, a bank might increase the COT on your account without informing you that is why it is important to always request for your account statements at regular interval. It will enable you to see all the discrepancies in your accounts. Beside, you can negotiate your COT with your bank.
3. Encourage Consumer – Gouging Payday Loans (Cash Advance Programs)
One of the ways banks make money is through the interest they get from loans so they trained their marketers to force loans on their customers; those who they know have the capacity to pay back the loans. As a matter of fact, banks encourage workers who have salary accounts with them to collect cash advance. Most of these employees will feel that the bank is doing them a favor when in the real sense the bank is trying to rip them off. In other to prevent this, you must ensure that you avoid cash advance programs as much as you can and then try to live within your means.
