A_flyer
3rd August 2006, 17:17
Probe of banks’ high ATM fees pushed
The Philippine Star - August 3, 2006
A party-list congressman wants banks investigated for charging customers high fees for using automated teller machines (ATMs).
In House Resolution 1324, Rep. Joel Villanueva of the party-list group Citizens’ Battle Against Corruption (CIBAC) asked the House committee on banks and financial intermediaries yesterday to look into the "unconscionable" ATM fees that banks are collecting from depositors.
"Some banks collect P5, others P12, for every withdrawal from another bank. Some even impose a P2 fee for a mere account balance inquiry," Villanueva said.
He said those amounts may be small for owners and stockholders of banks, who are billionaires and multi-millionaires, but are a heavy burden for small depositors.
He said there is no need for bankers to collect the fees since the ATM facility should be part of their service.
Based on data he obtained from the Bangko Sentral ng Philippines, Villanueva revealed that the banking system made P24 billion in 2003 from fee-based transactions, including those made through ATMs.
He said the P24 billion earned in 2003 was P2 billion higher than the amount banks made the previous year from the same transactions.
He said if the 16.5 million ATM cardholders made an average two withdrawals a month from another bank and charged P5 per withdrawal, the banking system would have monthly earnings of P160.5 million and nearly P2 billion a year from such transactions alone.
"It is clear that ATMs have become a gold mine not only for thieves and hold-up men victimizing depositors using these machines but for bankers as well," he stressed.
Villanueva also wants the House banking committee to look into the practice of banks requiring depositors to maintain a huge minimum balance.
He noted that in many cases, the minimum balance is equal to the take-home pay of ordinary workers.
He said if the balance is not maintained, the depositor is charged a maintenance fee or his account is closed.
"In effect, we are penalizing this depositor for keeping his hard-earned money in the bank. We cannot encourage people to save if the banking system continues these practices," he stressed.
— Jess Diaz
The Philippine Star - August 3, 2006
A party-list congressman wants banks investigated for charging customers high fees for using automated teller machines (ATMs).
In House Resolution 1324, Rep. Joel Villanueva of the party-list group Citizens’ Battle Against Corruption (CIBAC) asked the House committee on banks and financial intermediaries yesterday to look into the "unconscionable" ATM fees that banks are collecting from depositors.
"Some banks collect P5, others P12, for every withdrawal from another bank. Some even impose a P2 fee for a mere account balance inquiry," Villanueva said.
He said those amounts may be small for owners and stockholders of banks, who are billionaires and multi-millionaires, but are a heavy burden for small depositors.
He said there is no need for bankers to collect the fees since the ATM facility should be part of their service.
Based on data he obtained from the Bangko Sentral ng Philippines, Villanueva revealed that the banking system made P24 billion in 2003 from fee-based transactions, including those made through ATMs.
He said the P24 billion earned in 2003 was P2 billion higher than the amount banks made the previous year from the same transactions.
He said if the 16.5 million ATM cardholders made an average two withdrawals a month from another bank and charged P5 per withdrawal, the banking system would have monthly earnings of P160.5 million and nearly P2 billion a year from such transactions alone.
"It is clear that ATMs have become a gold mine not only for thieves and hold-up men victimizing depositors using these machines but for bankers as well," he stressed.
Villanueva also wants the House banking committee to look into the practice of banks requiring depositors to maintain a huge minimum balance.
He noted that in many cases, the minimum balance is equal to the take-home pay of ordinary workers.
He said if the balance is not maintained, the depositor is charged a maintenance fee or his account is closed.
"In effect, we are penalizing this depositor for keeping his hard-earned money in the bank. We cannot encourage people to save if the banking system continues these practices," he stressed.
— Jess Diaz