10 Ways Your Bank May Be Cheating You
These days, customers are growing more aware of the many ways their banks cheat them. Business banking customers need to be especially wary of the potential for abuse.
It’s reasonable to be concerned about how your financial institutions treat you.
Being proactive about where you keep your money and what kinds of agreements you enter into will help you get the most from your efforts in the business world.
According to Advance Funds Network, here are some ways banks cheat their customers:
(1) Account maintenance fees
(2) ATM withdrawal fees
(3) Overdraft fees
(4) Wire transfers
(5) Credit cards with variable rates Entrepreneurs and small business owners are frequently targeted using credit cards with initial low rates that can make balances balloon in the future. Your annual percentage rate with such a card will frequently go up sharply after the first year.
(6) Business credit cards with annual fees While cards with annual fees are a common way to help consumers build credit, business credit cards should never have these fees. Be alert, since such fees are typically charged only once a year and can slide under the radar if you are not careful.
(7) Business credit cards with deceptive rewards Credit cards are becoming more popular in Nigeria by the day. Banks sometimes want business credit cards to come bundled with a package of rewards. Understand, however, that the exchange rate between the naira spent and rewards gained is usually kobofractions on the naira. Rewards can be used to dress up an unfavourable offer.
(8) Aggressive marketing practices for business customers Many banks maintain commercial partnerships with a network of businesses around the country. Examine your account and credit card agreements carefully to ensure you can limit the extent to which your information is provided to these companies. You should also be able to opt out of “partner” advertising.
(9) Business loan repayment fees If you pursue a business loan from your bank, be aware that paying promptly can cost you. When arranging medium-term loans, many banks will tack on fees for paying off the loan before the anticipated end date. The manoeuvre is solely to protect banks’ bottom line.
(10) Limited access to crucial information Business owners have strict requirements when it comes to tax reporting. These demands can become highly inconvenient when your bank only provides a year’s worth of statements. Most banks charge extra for accessing older information and grant such requests at their leisure.
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