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<span style="font-weight: bold">News Source: OTGNR - </span>
<span style="font-weight: bold"> Confirmed : # Jamaican Gov ' t could force banks to reveal hidden fees ( RJR )...</span>
The government will be seeking to bring legislation to force commercial banks to provide greater levels of information to consumers on bank fees, to prevent surprises in banking transactions. Industry Minister Karl Samuda, who made the announcement at a press conference Thursday, also presented the findings of a 2009-2010 report by the Fair Trading Commission (FTC) on the Nature and Extent of Competition in the commercial banking sector. 'Low hanging fruit'The FTC, in its report, assessed the work of seven banks, the National Commercial Bank, the Bank of Nova Scotia, RBTT, First Caribbean, First Global, Pan Caribbean and CitiBank.Commerce Minister Karl Samuda said the findings singled out the countries two biggest banks, NCB and BNS, as the worst offenders on charging consumers high fees.And in dismissing a comment made by BNS President, Bruce Bowen last year he said with the findings indicating that the banks profit margins are considerably greater than reported expenses, there is room to lower bank fees."We have focused primarily on service charge because we feel that these service charges are unreasonable, they are high, they are excessive and that is why our focus is going to be on those two, make no mistake about it. I am not singling out anybody for any over aggressive treatment but obviously NCB and BNS are the low hanging fruit," Mr. Samuda said. No harmMr. Bowen had hinted that the cost structure of his bank meant that bringing down fees and interest rates could result in job losses.Mr. Samuda said the high fees persist because of the lack of real competition in the banking sector with the two biggest banks accounting for 74% percent of the market.He said the study showed that even if a new entrant were to come in; both NCB and BNS' share of the market would be hardly troubled, unless the new entrant is willing to invest huge sums to compete with the two behemoths.Mr. Samuda however said in moving forward he will lobby his colleague Ministers to support legislation which will force banks to disclose fees and help consumers avoid or lessen them where possible. Unaware consumersIn the meantime, the FTC, in its report, supported by a July 2010 Consumer Survey by the Consumer Affairs Commission (CAC) found that only 8% of consumers were aware of changes in bank fees.Forty-one percent indicated that that they were unaware of the changes in bank fees, and 31% said they were notified.Industry Ministry, Karl Samuda, says it is worrying that the majority of consumers were not informed by banks of changes in their service charges.He says based on one of the recommendations of the FTC, he has instructed the CAC to publish changes in sector, when they occur."That is going to be the job of the Consumer Affairs Commission to provide information to our consumers, that is our responsibility and so no longer will we simply go along and accept what is thrown at us but we will be monitoring it and we will highlight instances where we feel there is unreasobale activity taking place," he said.The FTC recommended that banks clearly communicate the related services or situations under which fees and charges would apply.The Commission also recommended that mechanisms be put in place to make it easier for banks to access customer information, such as through a Credit Bureau.
<span style="font-weight: bold"> Confirmed : # Jamaican Gov ' t could force banks to reveal hidden fees ( RJR )...</span>
The government will be seeking to bring legislation to force commercial banks to provide greater levels of information to consumers on bank fees, to prevent surprises in banking transactions. Industry Minister Karl Samuda, who made the announcement at a press conference Thursday, also presented the findings of a 2009-2010 report by the Fair Trading Commission (FTC) on the Nature and Extent of Competition in the commercial banking sector. 'Low hanging fruit'The FTC, in its report, assessed the work of seven banks, the National Commercial Bank, the Bank of Nova Scotia, RBTT, First Caribbean, First Global, Pan Caribbean and CitiBank.Commerce Minister Karl Samuda said the findings singled out the countries two biggest banks, NCB and BNS, as the worst offenders on charging consumers high fees.And in dismissing a comment made by BNS President, Bruce Bowen last year he said with the findings indicating that the banks profit margins are considerably greater than reported expenses, there is room to lower bank fees."We have focused primarily on service charge because we feel that these service charges are unreasonable, they are high, they are excessive and that is why our focus is going to be on those two, make no mistake about it. I am not singling out anybody for any over aggressive treatment but obviously NCB and BNS are the low hanging fruit," Mr. Samuda said. No harmMr. Bowen had hinted that the cost structure of his bank meant that bringing down fees and interest rates could result in job losses.Mr. Samuda said the high fees persist because of the lack of real competition in the banking sector with the two biggest banks accounting for 74% percent of the market.He said the study showed that even if a new entrant were to come in; both NCB and BNS' share of the market would be hardly troubled, unless the new entrant is willing to invest huge sums to compete with the two behemoths.Mr. Samuda however said in moving forward he will lobby his colleague Ministers to support legislation which will force banks to disclose fees and help consumers avoid or lessen them where possible. Unaware consumersIn the meantime, the FTC, in its report, supported by a July 2010 Consumer Survey by the Consumer Affairs Commission (CAC) found that only 8% of consumers were aware of changes in bank fees.Forty-one percent indicated that that they were unaware of the changes in bank fees, and 31% said they were notified.Industry Ministry, Karl Samuda, says it is worrying that the majority of consumers were not informed by banks of changes in their service charges.He says based on one of the recommendations of the FTC, he has instructed the CAC to publish changes in sector, when they occur."That is going to be the job of the Consumer Affairs Commission to provide information to our consumers, that is our responsibility and so no longer will we simply go along and accept what is thrown at us but we will be monitoring it and we will highlight instances where we feel there is unreasobale activity taking place," he said.The FTC recommended that banks clearly communicate the related services or situations under which fees and charges would apply.The Commission also recommended that mechanisms be put in place to make it easier for banks to access customer information, such as through a Credit Bureau.