HSBC Malta’s customer account fee does not constitute as an unfair commercial practice under the Consumer Affairs Act according to the Director General within the Malta Competition and Consumer Affairs Authority (MCCAA), Consumer Protection Mnister Clayton Batolo said.
A few weeks ago, HSBC Malta made headlines after news broke out that it had implemented a customer contact programme that entailed a €5 banking fee for services for customers who fail to deposit €2,300 or more over a three-month period. Those aged 61 or over need to deposit €1,250 or over instead.
In a parliamentary question on Tuesday, PN MP Chris Said asked the Minister if the Director General within the MCCAA can investigate whether the HSBC's customer contact programme constitutes an unfair commercial practice under the Consumer Affairs Act.
Bartolo informed Said that the Director General investigates any unfair commercial practice under the Consumer Affairs Act and the HSBC's conduct referred to in this parliamentary question does not constitute an infringement under the Consumer Affairs Act.
HSBC Malta’s programme faced a lot of criticism from the public as well as the Consumers’ Association which was one of the main entities to hit out at this new programme, saying that this move targets pensioners and low-income earners.
It added that the interest rates given by banks is already ridiculous, and banks use their customers’ funds to lend and earn higher interest than what they offer.
“The biggest impact of additional charges will be on vulnerable consumers, on those whose income go into accounts with another bank for example, and HSBC’s move could encourage other banks to do the same.”
Additionally, the CA said, could affect competition between banks. It said that banks cannot continue to solely protect their interests while oppressing the vulnerable.
The bank has temporarily suspended its €5 customer account fee programme in view of on-going discussion with Central Bank and the Malta Financial Services Authority. Discussions are still ongoing.