Most people put their money in banks because they believe it is safe and secure and in some cases it pays to ignore the fact that all banks are in business to make profit and make more. of profits if they can. Therefore, if you go to a bank to save your money or if you go to a bank to get a loan, you are giving them the opportunity to make more money, and it will definitely be yours.
The truth is that all banks try to use legal means as much as possible to take money from people; some banks even use illegal means to snatch money from their customers, especially if they know the customer will never suspect them. The problem that most bank users face is that they don’t bother to read all the terms and conditions presented to them when they want to transact with the bank.
Therefore, before opening a new account with a bank, it is important that you take the time to familiarize yourself with their conditions; Make sure you understand how their system works, their interest rates, additional fees, and any other hidden charges that you might not be aware of.
Now let’s take a quick look at 5 ways the bank scams people and how to prevent it;
5 ways banks steal your money and how to prevent it
1. Easily manage bank charges and hidden charges
Banks do business for profit and they use ignorant customers to make profits. One of the ways that banks take money from you is by deliberately handling bank charges and hidden charges with ease. Marketers who work with banks learn how to get their customers to borrow, collect overdrafts (cash advance), open special accounts and sign other special packages without focusing on fees and hidden charges. that it will attract.
To avoid this, be sure to ask all the questions that will give you a clear understanding of all bank charges and other hidden charges. If that doesn’t suit you, you can cancel the transaction. Only when you can make informed decisions.
2. Increase the cost of maintaining your bank accounts
In an effort to sell their products to you, banks make sure to reduce the costs of managing their accounts (bank charges) in order to attract customers. But the truth is, most people don’t even bother to check out the percentage increase in the cost of running their bank accounts after a year or more. Banks use it to increase these fees up to 300% after a year or more to steal their customers.
If not, to prevent this from happening to you, make sure that you ask for conditions to increase the cost of managing your accounts, and if you are not satisfied, threaten to close your account with them. For example, a bank may increase the TOC of your unrelated account. it is therefore important to always request your account statements at regular intervals. This will allow you to see any inconsistencies in your invoices. Alternatively, you can negotiate your COT with your bank.
3. Encourage consumers – to issue payday loans (cash advance programs)
One of the ways that banks make money is by earning interest on loans, so they train their marketers to charge loans to their customers; those they know can repay the loan. In fact, banks encourage employees who have payroll accounts with them to collect cash advances. Most of these employees will feel like the bank is doing them a favor when, in a real sense, the bank is trying to disrupt them. Second, to prevent this from happening, you should avoid cash advance programs as much as possible and then try to live within your means.
4. Encourage banking instruments (bank card, checkbook, etc.) with a cost per cost
Most banking instruments, such as ATM cards, check books, etc. have hidden fees, so banks try to encourage people to use these tools as much as possible; This is one of the ways the bank scams people. For example, some banks apply a flat rate sms rate to their customers, as well as fees when they use their bank cards or when they request check books.
In others, to avoid all those hidden charges that are not clear to you, make sure you are using an online banking transaction, it pays off as the fees are very minimal compared to ATMs and checks.
5. Mortgage documents for intentional mismanagement
Finally, another way the bank takes people’s money is the deliberate mismanagement of paper mortgage transactions; they allow unnecessary bureaucracy when reviewing applications. Banks are also making sure they spend more time paying property taxes; they delay cancellation of private mortgage insurance and even deliberately delay reporting on the status of loan modifications. Second, to prevent this from happening, be sure to closely monitor all mortgage-related processes and also check your bank statements every month to make sure everything is working as expected.
In addition, most banks will continue to use the services of people who are unfamiliar or too lazy to read all the necessary banking documents. Even if you’re not presented with a single document that clearly spells out their terms, be sure to ask for it.
Here you have it; 5 ways the bank takes people’s money and how it can be avoided.