Banks blasted for fee smokescreens
Consumer group says complicated banking charges need reforming and demands a new watchdog to protect consumers
BANKING charges in France are becoming more complicated and more expensive, an investigation by a consumer group has revealed.
UFC-Que Choisir said there was a need for urgent reform of the fees charged to customers, which bring in an estimated €15bn a year.
The group compared the tariffs of 12 major banks each year from 2004 to 2009 and found the fees were so complicated that consumers were unable to make accurate comparisons.
Banks have been required by law since January 2009 to publish a yearly round-up of all the fees they charge and send it to every customer.
According to the UFC-Que Choisir study, the average brochure is 24 pages long and includes more than 300 fees for different types of transaction.
LCL was singled out for its 63-page explanatory guide to its fees, while the Ile-de-France branch of the Caisse d'Epargne had the highest number of different charges, at almost 400.
"Consumers who want to compare these 12 banks would have 290 pages to go through and 3,638 different fees to examine," the group complained.
"Even bank staff have difficulty explaining what some of the transactions listed in the brochures actually mean."
The group criticised banks' attempts to sell "service packs" to customers, a monthly subscription which includes most day-to-day transactions but which the group claims is on average 25% more expensive than paying for operations individually.
Finance Minister Christine Lagarde announced in March that an investigation would be launched into the fees charged by banks. UFC-Que Choisir has submitted seven recommendations to the taskforce carrying out the investigation.
They include introducing a standard name for each type of banking operation that every bank would then use in its price lists, making it easier for customers to compare.
A new independent watchdog should be set up to keep a closer watch on bank fees and handle complaints.
The group also recommended that penalty fees should be capped - both in terms of their amount and their frequency - to protect customers.
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Banking probe puts fees in spotlight
Bank fees remain inconsistent
Crédit Agricole tops complaints
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