JAMAICA | PNP laments "Cruel, Unreasonable banking fees, Urges Gov't to Act Now

KINGSTON, JANUARY 26, 2022 - The Peoples National Party says the recent announcement of an increase in banking fees by Jamaica's two largest banks, 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.

A statement over the signature of Opposition MP Fitz Jackson PNP who tabled a draft bill in parliament in 2017  seeking to increase customer protection via the regulation of fees and charges, provision of information and a mandatory service package to bank customers, said today that "the actions of these banks "continue unabated, without any regulatory restriction  due to the Government’s persistence in allowing it."

Jackson said the JLP 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.

According to the PNP, 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. 

Speaking at a PNP press conference on Tuesday Jackson pointed out that "the provisions of the Bill were arrived at after extensive bi-partisan 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 a 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," Jackson said. 

I tabled the motion in latter part of 2015 when PNP was in government, at the time the bill got overwhelming support. Then it was referred to BOJ for review. Then we went into an election. Then in 2018 it was struck down by current government. I have always been fighting. https://t.co/MfjZ4vFVYF pic.twitter.com/KfuB3gTISk

— Fitz JacksonJA (@FitzJacksonpnp1) January 25, 2022

"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,” Jackson pointed out.

On Monday, Jamaica Labour Party (JLP) Deputy General Secretary, Richard Creary in a press release from the party,  said he was calling on the Government of Jamaica to  engage the banking sector urgently in light of recent announcements of increases in bank fees.

According to Creary, "the JLP is also of the view that the Government must move to deal with issues related to service delivery from the Banks to ease the strain being faced by the Jamaican people in doing business with the sections of the banking sector."

In the meantime, Prime Minister Andrew Holness has since warned Jamaica's commercial banks against imposing increased banking fees and reducing services in rural areas, stating that these actions will hurt long-time customers and individuals struggling because of the pandemic. Holness said the potential for economic growth may not be realised if the decisions of private sector bosses do not consider the country’s social context.

Minister of Finance and the Public Service Dr Nigel Clarke also weighed in on the impending fees and said, after dialogue with the stakeholders, he expects them to be "responsive".

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