Urging Finance Minister and BOJ to take action

Former Jamaican Government Minister Robert Montague has launched a stinging criticism of local commercial banks, which he argued need to be reined in, citing poor customer service delivery.

Making his contribution to the 2022 Constituency Debate in Parliament on Wednesday, Montague, the member of parliament (MP) for Western St Mary, was highly critical of the high fees currently being charged by banks.

The MP reported that his constituents “are having a hard time with their banking needs, as the commercial banks have all gone cashless and are charging fees, as if it’s going out of style”.

He added: “We are of the view that the banks are putting profits over people.”

Montague questioned how a bank account can be considered dormant when these accounts are credited with interest at least twice per year, which means that every account has activity at least twice per year. As such, he questioned the basis on which a dormancy fee is charged.

According to the former Cabinet Minister, “if there is no activity on the account, the banks need to tell us what they do with interest earned from these accounts! If they lend out people’s money and don’t give back a portion of the interest earned, it’s not only fraud, it’s downright robbery, robbery robbery! The Minister of Finance and the Bank of Jamaica (BOJ) must investigate and fine the banks, plus every dormant fee charged in the last seven years must be returned with interest.”

Poor suffering bank customers need help

Continuing, Montague asserted, in comments directed at Minister of Finance and the Public Service Dr Nigel Clarke: “This is a formal report on the matter. If the banks refuse to pay back and stop the practice, then, Minister, you must then report the matter to the police. Minister, it’s time the poor suffering bank customers get some redress and that’s why we are turning to you! Furthermore, when I lodge my money with the banks, there is an expectation on my part for the banks to keep my information confidential.”

The MP went on to question the apparent lack of accountability being exhibited by these commercial banks, saying “many people are seeing funds going missing, credit cards running up massive balances and all kinds of funny activities on their accounts. But the banks don’t hold themselves liable, they hold the people of Western St Mary and other rural towns liable. The Minister of Finance and BOJ must act! A banking licence is a privilege, the issuer of that licence can rein in the entity”.

He urged the BOJ to use the tools in its power to have the banks become more accountable to their customers declaring, “don’t tell me that you (Minister of Finance) nor the BOJ has no power to do so. The Government has a big stick, use it!!! How then, do you run down a taxi man? He has a licence too and you beat up on him, when the service is not up to par or if he breaches. Or is only poor people we have strength for? If you cannot touch or rein in the banks, then dont touch the taxi operator! There must be on rule, one principle, for all!”

60 days to clean up their act

He urged that the Government use this moment and call in the banks, giving them 60 days to clean up their acts and treat customers better.

Montague called for the Finance Minister to “seize this moment and act”.

He said: “Let me be very clear, I am not asking for any taxes on banks and their profits, just better customer service. There must be operating standards, penalties if they are breached, abolishment of fees, build cover over the ATM to accommodate 10 persons, we live in a tropical country, the sun is merciless and rain can fall at any time. The banks must be held to a higher standard and they must give better service.”

Montague argued that the people of Western St Mary have been wondering if the Finance Minister and the BOJ are protecting them or the banks, making the point that there ought to be a balance.

In concluding, he declared that, “right now the people are suffering at the hands of these rapacious bankers. Minister, this is now in your hands, your capable hands, we are depending on you to act”.