The following is a release from MP Fitz Jackson:
The recent announcement by the two largest banks in Jamaica, the Bank of Nova Scotia and National Commercial Bank, has once again highlighted the continued cruel, unreasonable and heartless deductions from account holders through a range of fee penalties. Their actions continue unabated, without any regulatory restriction due to the Government’s persistence in allowing it. The administration, using its majority, has continued to block the passage of the Bill before Parliament that offers some protection to the public. This Bill would allow account holders to make transactions against their own accounts without the penalty of fees. These transactions would include making withdrawals, deposits, transfers, account inquiries, cashing of cheques, among other routine transactions. Why should an account
holder be penalized by the charging of a fee for using their own money, which the banks already have the privilege of using to earn for themselves? The Bill before Parliament does not require the banks to share their profits from use of depositors funds. The charging of fees to account holders to use their own money, provides a double benefit to the banks, and a loss to the depositors. Banks, like all other businesses incur operating expenses like salaries, utilities, marketing and promotion. These operating expenses for their peculiar banking activities would include the counting of the monies they established themselves to collect, using modern technologies and not just by hand, together with their transportation and safekeeping as they deem imperative.
The provisions of the Bill were arrived at after extensive bipartisan discussions and agreement between both JLP and PNP Members of Parliament, including current senior members including Ministers Karl Samuda, Audley Shaw and Daryl Vaz while serving as members of Parliamentary committee that considered the matter. These Parliamentarians, among others, have now seemingly surrendered to the lobbying of the banks, and abandoned the protection of everyday Jamaicans, micro, small and medium size businesses, pensioners and those marginally employed in the public and private sectors, including the unemployed.
I am heartened by the recent announcement by some officers of the JLP, who have now recognized that the public ought to be protected from the wicked bank fees. This bold move by JLP officers is commendable and demonstrates good conscience and patriotism. I urge my fellow Members on the Government side of the Parliament to demonstrate their own courage and patriotism in defence of the thousands of Jamaicans who voted for them in their various constituencies. It is to the majority of our constituents across the country to whom we are beholden, and not to the few bank owners who extract over $50.0 billions each year in fees from account holders.
We all as Members of Parliament must always be mindful that our individual or collective failure to act in protection of fellow Jamaicans, makes us complicit with the banks in their continued unjust practices. Future generations and history, will record how we would have failed our people and country.
The Bill has been kept on the order paper since its defeat in 2018, and re-tabling in October 2020, immediately after the last general elections. This ensures the ongoing opportunity for the Government to act “at the drop of a hat”, in protection of ordinary deposit holders and prescribe a minimum level of transaction services without fees. This will ease the burden on consumers while still allowing banks to earn profits. We are being called upon to put Jamaica first, look out for the ordinary man, and stand up for what is right, even for once”.
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Statement from Trevor Samuels - National Consumers League
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| Trevor Samuels |
Hi Vernon,It seems as if the banking sector’s New Years gift to banking consumers is a significant increase in fees charged to consumers. Services that were not attracting fees before are not now excluded. The banks were always encouraging customers to use the ATMs, but fees are now charged for those services .Most banks no longer welcome customers to the banking halls as they used to, so elderly persons who are not computer savvy find it difficult to access simple services. Try to call banks by phone and it is almost hopeless to get them. I am not aware of any bank making a loss, maybe a decline in profits but most persons do so since the pandemic and have to live with it, When you look at the difference in rates between the deposits and loans it is mostly unfair - a small percent vs a high rate to the borrower. For years the banks have resisted a banking code and what they have accepted hardly change things.
Banks no longer are competitive so if you want to change it hardly makes sense . This does little for consumer choice,. People who desire to save need to seek other financial institutions which offer better rates. Consumers should only keep what they need for day to day expenses in savings and chequing accounts. Consumers are encouraged to shop around if they have money they want to save and keep close to the inflation rate.
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Editors Note:
In dealing with the financial institutions, the real power lies in the hands of consumers. Consumers must take a stand on this issue of increased bank fees. The credit unions must be empowered to offer all the services now being offered by the banks. The lack of competition in the area is the real challenge
For a long time now, I have used radio and social media pages to highlight what has been happening in the banking and also the insurance sector which are not in the consumers interest. Mr. Jackson has taken the matter to another level. The Consumer Affairs Commission has also been speaking with the banks and has even come up with a proposal which would help to make for a more level playing field. The National Consumers League has been talking about the matter. The consumers of Jamaica are being taken for a joy ride and we need to say enough is enough.
