Mike, a recent college graduate, opened a checking account with a local bank. He asked numerous questions before deciding on this bank, including inquiring about checking account fees and annual credit card fees. When Mike returns from his first international business trip he is surprised to see numerous fees on his credit card statement and his bank statement. When he calls the bank, they inform him that they recently added service charges on international transactions involving their checking and credit card accounts. When Mike protests, they state that his last bank statement included a flyer detailing these changes. In looking back, Mike realizes that he had, in fact, received the information, but had ignored it because it was included with considerable advertising information about car loan rate specials and the lengthy document was in very small print.
a. Comment on the ethics of banks and other financial institutions’ efforts to notify customers of fee changes. Should a letter be sent specifically dealing with these changes to ensure that customers are aware of the information?
b. Is there a lesson to be learned from Mike’s experience?