The Jamaica Labour Party (JLP), writing to the Government it forms, has urged the Holness Administration to engage the local banking sector amid recent increases in bank fees. 

The JLP, citing deputy general secretary Richard Creary in a statement on Monday night (January 25), was of the view that many Jamaicans simply cannot afford the rate hikes amid the socio-economic impact of the coronavirus (COVID-19) pandemic.

Jamaica’s largest financial institution, National Commercial Bank (NCB), announced a fee guide effective January 2, which sees citizens being charged to use in-branch services as well as new fees for transactions conducted at its automated teller machines (ATMs) and point of sale (POS).

The stance from the NCB Group follows Scotiabank Jamaica’s advisory of ATM fees two years ago.

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See the JLP’s statement in full: 

“The governing Jamaica Labour Party (JLP) is calling on the Government of Jamaica to engage the banking sector urgently in light of recent announcements of increases in bank fees. 

JLP Deputy General Secretary, Richard Creary (Mayor of Port Maria), says the party is aware that the Jamaican people cannot afford an increase at this time. 

Mr Creary says “We have heard the concerns of the Jamaican people and are urging the Government to work with the banks to find ways to avoid any increases at this time”.

Creary went on to state “The pandemic has added significant pressures to citizens and small businesses alike. Increases in bank fees at this time may be viewed as unconscionable”.

The JLP is also of the view that the Government must move to deal with issues related to service delivery from the banks to ease the strain being faced by the Jamaican people in doing business with sections of the banking sector.

It is recognized by the JLP that banks did indeed make significant concessions at the beginning of the pandemic, but wish to remind the banks that the pandemic is indeed not over. We encourage the Government to move swiftly in engaging the banks to ensure there is resolution to these burdensome issues during the pandemic and beyond.” 

Confused Jamaicans on Twitter, however, slammed the statement as pointless.

According to the Twitterati, the energy it took the JLP to fashion a press release would have been better used to call for an audience with the top-brass of Government. 

A few others contended that in February 2018, all but one JLP parliamentarian blocked a bill tabled by the People’s National Party’s (PNP) Fitz Jackson, who attempted to intervene in the rising costs of banking in Jamaica. 

In reply, Minister without portfolio in the Office of the Prime Minister (OPM) Senator Matthew Samuda acknowledged the vote against amendments to the Banking Services Act, claiming that the law as proposed by Jackson was “deeply flawed”.

“We have always acknowledged that the issue requires a fix, which is coming. The bill put forward by Fitz is deeply flawed and would cause more harm than help,” Samuda said.

“Regulating prices will cause capital flight aka banks shutting down. Jamaica has long since moved past price control The best way to bring down prices is to increase competition, ie more banking licenses and agency banking. Both of which we have done. The market will level out,” he added.

The ‘justification’ did little to cool flared tempers, as more Jamaicans lashed the JLP senator for being a ‘mouthpiece of nothingness’.

“It’s how you just tell me that Jamaicans must suffer and banks prosper. You didn’t have to say it for me to get it,” replied user @romwilliams25.

“If banks can only stay open by ripping off its customers then by all means they SHOULD shut down. Charging high fees to stay viable isn’t banking so we wouldn’t be missing anything,” another man, @Boydsnr, argued.

Still, the timeline remains outraged that a growing number of banks like NCB and Scotiabank are charging customers to access their own money.