Sen Gillibrand Makes Known Banks Penalizing Customers Who Don’t Switch to Electronic Banking

eHezi Archives 5 Comments

Gillibrand_Kirsten  But Many New Yorkers Do Not Have Adequate Access to the Internet

May 12, 2010, Washington, D.C. –- As the U.S. Senate moves forward on legislation to protect taxpayers and set new rules of the road for banks and lenders to keep our economy stable, U.S. Senator Kirsten Gillibrand is pushing an amendment that would make sure seniors and families that do not have adequate access to the Internet are protected from new fees banks are charging for paper statements. Increasingly more banks are punishing customers with new fees when they don’t switch to paperless, electronic billing, while approximately 2 million New York households do not have Internet access at home.

“Thousands of seniors and families in this area do not have adequate access to the Internet or thousands more are simply not comfortable reviewing their finances electronically,” Senator Gillibrand said. “These New Yorkers shouldn’t be punished for wanting to receive their bank statements in the mail. My legislation will make sure that financial institution cannot take advantage of seniors or struggling families by imposing more fees.”

Senator Gillibrand’s amendment to the financial regulatory reform bill would empower the newly created Consumer Financial Protection Bureau (CFPB) to crack down on banks that charge consumers fees for accessing paper statements.  These fees – which often amount to several dollars a month – are particularly harmful for seniors with limited computer literacy, New Yorkers in rural areas with limited internet access, or low-income individuals who lack internet access and are forced to pay to get copies of their financial information – or not get that information at all.  

 Approximately 250,000 households in the Hudson Valley do not have access to the Internet.

County

Estimated Households Without Internet Access

DUTCHESS

32,165

ORANGE

38,536

PUTNAM

10,513

ROCKLAND

29,388

SULLIVAN

9,151

ULSTER

21,947

WESTCHESTER

106,007


Senator Gillibrand’s amendment would require the CFPB to review the fees banks, credit card companies,and other financial institutions that are charging for paper statements and develop rules to provide consumers with access to paper statements without undue fees.  Additionally, it would address similar fees, like fees charged for individuals who pay with paper checks, rather than online, and would cover any entity that is covered by the CFPB, including banks, mortgage lenders, credit card companies, and any other consumer financial institution.  

According to a recent survey, two-thirds of Americans say they prefer to receive statements and bills in the mail, rather than through E-mail.  Only 13 percent prefer electronic delivery.  Similarly, two-thirds say they prefer to pay their bills with a paper check, rather than pay electronically.  Senator Gillibrand’s amendment would help preserve consumers’ ability to receive bills and statements in the way that works best for them, and not get charged an additional fee for it.

eHeziSen Gillibrand Makes Known Banks Penalizing Customers Who Don’t Switch to Electronic Banking

Comments 5

  1. Record 80 billion deficit for the month of April,we are all Greeks now!The only good Democrat is a defeated Democrat.

  2. Obama voter,”My account can’t be overdrawn,I still have checks!”The only good Democrat is a defeated Democrat.

  3. lets dump this imbecile:…we need someone who cares for New Yorkers.not someone who is controlled by Chuck Schumer.
    Remember in November to vote these two idiots out of office

  4. Shes worried about petty things like bank fees while unemployment,taxes and out of control spendig are the order of the day?Dont make yourself out to be a champion of the people.Put us back to work cut our taxes and stop this government waste and then we’ll talk.

  5. Get real, Senator! The April budget deficit is a record 82 billion,four times the April 2009 20 billion deficit and the Democrats control both houses of congress and the presidency.This is change that should horrify Americans.The only good Democrat is a defeated Democrat.

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