‘Extra charges’: DAP takes case to Bank Negara

‘Extra charges’: DAP takes case to Bank Negara
Claudia Theophilus
Dec 9, 04 6:18pm

A group of DAP parliamentarians led by party secretary-general Lim Guan Eng submitted a memorandum today to Bank Negara Malaysia governor Dr Zeti Akhtar Aziz protesting against arbitrary and excessive surcharges imposed by banks on customers.

The protest memo against the central bank’s “inaction and indifference” towards the surcharge and the lack of social responsibility was received by corporate communications director Abu Hassan Alshari Yahaya.

The MPs present were Tan Kok Wai (Cheras), Fong Po Kuan (Batu Gajah), Fong Kui Lun (Bukit Bintang) and Teresa Kok (Seputeh).

Speaking to reporters outside the central bank after the hour-long meeting, Lim said Abu Hassan had generally agreed with the points raised in the memorandum on excessive and unjustified charges being imposed by commercial banks.

“He agreed with some of our points and promised to act on the complaints. He said they will prepare guidelines on standard charges for basic banking services.

“The situation has reached a point where it is ridiculous to pay for depositing or withdrawing our own money from the banks,” he added.

Lim stressed that the protest was against all commercial banks that imposed surcharges on various types of transactions, both conventional and internet banking.

Complaints ignored

He said the central bank had also ignored numerous complaints on banking service charges over the years.

“This is why we need public pressure for the issue to get noticed. The official assured us that this will not be just be lip service. Let’s see what happens after this,” he said, adding that Bank Negara had very lax enforcement despite being the regulator of the country’s banking sector.

“The commercial banks are reaping huge additional profits at the expense of consumers. We want Bank Negara to ensure that no commercial and banking laws are being violated in the process,” he said.

Lim urged Bank Negara to proactively reverse the charges and surcharges to uphold the government’s repeated calls for social responsibility.

He also noted that banks often impose charges and surcharges by fiat or without any prior notice to customers.

“Such arrogance is not just offensive but unfair to consumers who lose out in increased financial cost,” he said, outlining some of the public complaints compiled by the DAP.

“Bank Negara must be alert to inaccurate and unreasonable statements by Maybank, including claiming a 24-hour online banking through Maybank2u.com when it is only available between 6am and midnight,” he added.

Currently, many Maybank2u.com customers are angry over the RM12 access fee for internet banking effective Dec 20 which will be auto-debited from their account, with permission, besides paying other transaction-based service charges.

Both the central bank and Maybank, the country’s largest banking group, have not responded to questions e-mailed by malaysiakini on Tuesday.

The memorandum cited the example of a RM2 service charge imposed by another bank for every additional 100 currency notes of any denomination exceeding the first 300 pieces.

Other examples include a RM20 charge on Savings or Current Accounts that are closed within six months and RM60 for a telephone call to top up an overdrawn current account over and above the RM50 and RM100 late administration fee respectively for the 15 and 45-day periods.

Excessive charges

Quoting from a Southern Bank notice dated Oct 22, Lim said customers are imposed excessive charges on overdrawn accounts, including RM200 for each cheque returned due to insufficient funds, RM200 per represented cheque (charged together with returned cheques) and RM50 for non-collection of cheque books after 30 days.

Besides advising customers to ensure sufficient funds in their banking accounts “to avoid being imposed any penalty charges”, the notice urged them to use the ATM, auto-debit payments and phone banking.

“Certain banks are imposing service charges for current account below a certain balance sum. One charges RM10 monthly for having a daily balance of less than RM1,000. An inactive RM500 current account would be exhausted in four years,” said Lim.

He also criticised Association of Banks in Malaysia (ABM) chairperson Dr Rozali Mohamed Ali for saying in The Edge last Monday that the association would not advise member banks on pricing matters which was their prerogative.

ABM has 23 members comprising both local and locally-incorporated foreign banks.

Lim said commercial banks’ pre-tax profits rose from RM2.5 billion in 2001 to RM6.4 billion a year later and recorded RM6.9 billion in 2003.

For the third-quarter of this year, he said the profitability of the banking system remained favourable with RM2.8 billion pre-tax profit, an increase of 17 percent compared to RM2.4 billion in the corresponding quarter last year.

“Bank Negara should shed its indifference and disregard of complaints and dissatisfaction of the consumers by removing these excessive charges as ordinary Malaysian should be your primary concern and not the additional profit-making capability of banks,” he added.

Online petition

At press time, an ongoing online petition had registered 15,580 signatures, and still counting, of people who signed as Maybank customers.

When contacted via e-mail, Rizam Zamri, cited on the main page as the author and writer of the petition, said it all boils down to people demonstrating their consumer power.

“A majority of the (Maybank2u.com) users are just like me, an average person, no VIP post, no million-dollar business and always trying to make ends meet...we need a petition in order to be heard.”

He said he was amazed by the momentum that is propelling the online petition which began on Dec 2 and which, by the second day, had collected over 4,000 signatures.

Last week, e-mail requests to six banks for a list of charges for internet banking produced two prompt replies, and both said their internet banking services are currently free.

United Overseas Bank (Malaysia) Bhd said its personal online banking is offered free round-the-clock while companies are given a first-year access fee waiver.

RHB Customer Care Centre operations manager Irmawati Osman replied saying that internet banking was free but charges are imposed for inter-bank transactions and foreign telegraphic transfers based on the stipulated sum.