€200 bank charge limit is ‘too high’

Finance minister Bruno Le Maire said: “Today, the poorest people are most vulnerable to bank charges. Some on low incomes might pay up to €400, €500 or €600 per year in bank charges. It is unacceptable.”

But with the Banque de France saying 3.6million people are in financial difficulties, consumer groups UFC-Que Choisir and 60 Millions de Con­sommateurs said he was targeting too few.

The limit applies only to the 351,000 clients on €3-a-month basic Offre client fragile (OCF) accounts but does not help the 2.4million eligible for the OCF who do not have one but pay an average €360 a year in charges.

Que Choisir said the limit was too high as average penalties for OCF clients are €190.

The groups said one in four of all customers pay penalties, for example for bounced cheques, making banks €6.7billion – nearly 40% of their daily banking activity – at a profit margin of 86%. They said limits should apply to all bank customers and be set in law as banks failed to self-regulate on fees in the past.

Launching his proposal, Mr Le Maire said: “We are betting on banks’ cooperation. I hope they play the game. If our ideas are not working in six months, we will take other measures.”

The FBF banking federation replied that banks would set a limit but based on “their own costs and inclusion policy”.

The moves are proposed in the Loi Pacte plan for growth which is before parliament.

It also includes a move to extend the OCF to more clients.

But 60 Millions de Con­sommateurs said MPs should protect the 25% of people who run out of cash regularly rather than follow banks’ wishes and set limits only for OCF clients.

Banks would then clear them off into a special Banque de France social banking package.

Ordinary banking fees (before penalties) vary from €31-€50 a year with online-only banks to €300-plus for high street banks.

Check bank costs at the government comparison site at tarifs-bancaires.gouv.fr.