Why is US Bank Charging Me an Analysis Service Charge?

Question:

Dear Steve,

US Bank recently started assessing an analysis service charge to my business checking account

I spoke to the manager of the branch who did not know what the fee was and was unable to show me in the signing agreement where I agreed to it while refusing to take it off. It is now a regular 45 monthly.

Frustrated

Answer:

Dear Frustrated,

The reality is the Analysis Service Charge on business accounts is just another fee that can be charged. One response by a US Bank representative said, “Fees can vary based on the state your account was opened in.”

People online say they have been customers of US Bank for many years and all of a sudden the Analysis Service Charge fee appears on their statements. Others say they have paid hundreds of dollars a month in Analysis Service Charge fees.

Issues like this are extremely frustrating. Money is taken from your account but little clarity is available as to exactly why.

If you go to the US Bank website and search for “Analysis Service Charge” it produces no results.

If you could ever get to the bottom of this you will probably find US Bank is attempting to add some foggy charge in an effort to recoup fees for services in your account. Some people say it is a fee for a paper statement, others say it is added for deposits or transfers.

For some scary reason, there are a number of US Bank statements that can be found online. Here is an example of the Analysis Service Charge section of one of those statements.

The clearest answer regarding the Analysis Service Charge comes from a document with the City of Spokane. In the minutes from April 2017, there is a document from US Bank who was trying to win the banking service for the city.

The US Bank document says:

Q: “Also describe the effective rate, method used and formula proposed to calculate the service charge credit or the earnings allowance on collected balances.”

A: “Earnings credit is based on the average positive collected balance for the month and the applicable earnings credit rate (ECR) for that balance. If the earnings credit amount is not sufficient to cover the analysis fees, the standard method of settling this difference — called the (net) analysis service charge — is to debit a designated analyzing account (chosen by the City) on a monthly basis. The debit occurs on the 10th business day of the month following the month of service.”

The document also says, “Except for small business customers, compensation owed U.S. Bank is generally the combination of (or, more accurately, the net difference between) balance-generated credit and analysis fees. Most analyzing accounts receive a monthly earnings credit, which is applied against analysis fees.” – Source

The reality is the Analysis Service Charge seems to be a fairly opaque fee charged by the bank. If the bank can’t explain how the fee you are being charged is calculated to your satisfaction then you can always find a bank that you feel will treat you differently.

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

The post Why is US Bank Charging Me an Analysis Service Charge? appeared first on Personal Finance Syndication Network.

About Damon Day

As a Debt Coach and a Financial Advocate, I have saved my clients Millions of Dollars by exposing the debt relief scams that other consumers fall victim to. I work directly for my clients to create custom debt relief strategies based on their own unique circumstances. Consumers who speak with me first, come out far ahead of those who don't, every single time. Guaranteed. +Damon Day