Fri | Aug 18, 2017

MP mulls class action suit against banks over dormant account fees

Published:Wednesday | March 15, 2017 | 3:23 PM
Jackson

St Catherine South MP Fitz Jackson says he is taking steps to bring a class-action suit against deposit-taking institutions for breaching the law in charging fees for dormant accounts.

Jackson, who has been advocating for stronger banking regulations and consumer protection, says he’s currently meeting with lawyers to draft the paperwork.

He’s arguing that the charging of dormant account fees violates responsibilities stipulated in the Banking Services Act.

 

The St Catherine South MP, Fitz Jackson

Jackson says the fee is wrong and unfair to account holders and deposit-taking institutions should scrap it.

He says other institutions should follow the National Commercial Bank to immediately suspend the charging of fees for dormant accounts.

The MP says while he welcomes NCB’s decision, the bank should go a step further and refund the fees.

 

The St Catherine South MP, Fitz Jackson

Last week, finance minister announced that the Government will be setting up a consumer oversight body for the financial sector.

Shaw said the Government took note of the outcry of Jamaicans about the high fees and charges by deposit-taking institutions.

He said it believes that a dedicated financial services consumer protection agency will help to address the concerns of consumers.

The finance minister disclosed that there’s approximately $45 billion in dormant accounts held by financial institutions.

He also disclosed that banks made approximately $29 billion from service charges, transaction fees and commissions last year, almost 17 per cent more than what was collected in 2015.