Magazine article American Banker

Bank-Fee-Killing Service Rolled out by Fintech Firm

Magazine article American Banker

Bank-Fee-Killing Service Rolled out by Fintech Firm

Article excerpt

Byline: Penny Crosman

There's a mysterious, recurring charge on your bank card statement, and you've been too lazy to investigate it because it's less than $30.

Sound familiar, at least in the case of your customers? Increasingly consumers, especially millennials, are paying for things with an automatic debit from a card -- streaming TV services, gym memberships, cellphone bills, rent and so forth.

"Over the last 18 months, the average number of automated charges per person has doubled," said Yahya Mokhtarzada, co-founder and CEO of Truebill, a fintech startup that acts as an automated financial advocate. It connects to bank or credit card accounts, monitors transactions and identifies potentially improper charges that the consumer might not even notice. With customers' permission, it applies for a cancellation on their behalf.

"It turns out there are a lot of people out there who are paying for an old subscription that they forgot about or for a free trial that converted into a subscription they're unaware of," Mokhtarzada said.

Truebill's app provides a dashboard that shows the user's subscriptions and recurring bills in one place. It has 120,000 users so far. Users may cancel any subscription with one click.

On Thursday, the company announced a new feature: the ability to cancel late fees, overdraft fees and other bank fees.

"Last year, banks made $16 billion in revenue just on overdraft fees," Mokhtarzada pointed out.

When this new feature detects a late fee or an overdraft charge, if the customer allows it, it contacts the bank on the customer's behalf to request a refund. …

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