ACC has uncovered millions of dollars in overcharges on erroneous bank fees for large franchise groups and fast food restaurant operators, corporations, private equity owned companies and manufacturing companies. In many cases, the organization had long-standing relationships with their banks and trusted that fees were fair and accurate. These relationships, what we often refer to as “sacred cows,” feel comfortable and convenient, often with interpersonal relationships developed between individuals at both entities. Unfortunately, sacred cows usually come with a price in that your bank or financial services provider has likely not come under review for rates and fees. You may even have a contract with that institution that automatically renews with built in increases.
Steps to avoid erroneous bank fees:
- Monitor your bank fees monthly
- Compare bank fees to your agreements
- Watch active payment accounts
- Monitor closed accounts to ensure fees are not longer coming through
- Issue an RFP and have your current bank participate to ensure you are receiving competitive pricing
- Work with a 3rd party consultant like ACC to monitor fees on your behalf
To free up time and keep your team focused on core business, a 3rd party review from an expense reduction consultant like Alliance Cost Containment prevents erroneous fees and costly mistakes. Having a procurement plan in place and frequent reviews of bank fees, whether for PE portfolios, large companies, schools or universities — ensures you only pay what is owed.
Need more advice on managing your indirect procurement strategy? Contacts us for a complimentary analysis.
