€200 bank charge limit is ‘too high’
Plans for a €200 annual limit on bank penalty charges for the poorest clients have been criticised by consumer groups as doing too little and aiming at the wrong people.
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.
