Will bank charges ever be controlled?
Author : teriannNow this is not a new topic for me because last year I spent time venting about how the bank charges have steadily increased. In fact, some banks have even tacked on new charges to their customers account.
This fact was brought home to me when I recently went to deposit my cheque at the Scotiabank. I informed the clerk of my intention to deposit my cheque so as to avoid paying the $140 encashment fee.
I had decided to withdraw the money at the A.T.M machine after the lodgment since it cost less than withdrawing the money at the bank counter.
The clerk then politely told me that I would be charged a fee of $250.00 to deposit the cheque to my account. I stood in utter shock as she explained that the charge was due to the type of account I had at the bank which was a regular savings account.
So let me get this straight, I get charged $140 if I cash the cheque or $250.00 if I deposit it? When I first wrote about this fee, one of the options offered by the same bank had been that customers could deposit their cheques in their account to avoid paying the fee.
Is it only me or are the banks getting more greedy?
Well there have been calls from various sections of society for the banks to have a regularized system so that consumers are not forced to submit to exorbitant fees.
These sentiments have been echoed by many as they see no end in sight to the banks’ ability to tack on bank fees without any end in sight.
“A recently released Bank of Jamaica survey of fees and charges indicated that there was a 30.8 per cent increase in fees charged since 2010 by local banks. In some instances, individual charges had risen by up to 100 per cent.” (Taken from Gleaner article dated February 4, 2014.)
Not surprisingly, the bankers are adamant that the bank charges are necessary for the survival of their enterprizes. They seem to think that without raking in extra fees the banking sector would collapse.
Their reasoning just doesn’t make sense to me since they seem to forget that they rely on their customers to stay in business so why ‘bite the hand that feeds you’?
There are alternatives to using banks but there is a huge security risk to cart around huge amounts of cash. Banks provide several essential services but the power rests in the hands of the consumers.
What do you think? Should bank fees be controlled?
Let me hear from you!
Teri Ann Renee Paisley
Gleaner Online Writer
Tags: bank fees, increase, regulations
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7 Responses to “Will bank charges ever be controlled?”
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There are two considerations that will affect decision. One is the close ties between banks and the Government in terms of business transactions.
Govt probably use significant amounts of Bank Funds. The fact is the banks are creating an enormous amount of bad relations with their clients and users of services, depositors, borrowers and credit card mismanagement. But this stage of conflict is not dynamic enough, that immediate pressure on them will cause immediate response. So the reaction of the public may just fizzle out.
Ms Paisley, you are quite correct. They ought to be reined in. They charge you to put in your money to their bank and charge you to take it out. They are forcing us to keep it under our beds and in chamber pots.
All the big properties they own, all the bonuses they pay out to senior management and all the things I see them sponsoring and they still need to gorge and burp off of my little savings?! Shame.
In refection it seems to me by the lack of available sanctions, Cambios have to take this bull by the horns and find every method we can to have this policy rescinded. Perhaps a public letter every week will keep the bank charges in the mind of the public. Or, a list of charges and misdemeanors caused by the banking system reiterated in the press, is another answer. Of course Identification in the public media of persons who support excessive bank charges could be promoted, and presentations made to other business organizations for their support.
I think Ramesh spoke cleraly of how we should proceed. It is a sad day that banking has come to this.
As a retired US bank officer responsible for developing fees and service charges, please know that there is no relationship between bank costs and customer charges. It is based solely on what the competition charges; the level of activity; and if the customer has little or no choice of incurring the charge. Increasing fees and service charges and developing new ones has become a science and the easiest way for banks to enrich themselves. I also consulted for ten years and was paid well to “share” new revenue ideas with other banks.
From the book of Genesis to the Book of Revelation, God has shown that he is the Liberator of the oppressed.
These bankers should note that and try to be on the side of God.
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