Euro­pean banks now of­fer fees trans­parency

The Malta Business Weekly - - NEWS -

New EU rules for banks and fi­nan­cial ser­vices providers, in force from yes­ter­day, re­quire them to be more trans­par­ent and open about the fees they charge re­lated to open­ing and main­tain­ing bank ac­counts.

"Bank ac­counts are an es­sen­tial part of ev­ery­day life, al­low­ing us to make and re­ceive pay­ments, shop on­line, and pay our bills," said the Com­mis­sion's Fi­nan­cial Ser­vices vi­cepres­i­dent Valdis Dom­brovskis: "Thanks to the Pay­ment Ac­counts Direc­tive, con­sumers have the right since 2016 to open a ba­sic bank ac­count any­where in the EU, as well as switch­ing to a new provider."

He added that the in­creased trans­parency of fees for con­sumers "will make it eas­ier to shop around for the best and cheap­est of­fers from banks."

Com­mis­sioner Vera Jourova said "Re­cent fig­ures show that con­sumer trust in bank­ing ser­vices is low due to a lack of trans- parency. These new rules will make sure that banks' of­fers are more trans­par­ent and clearer on fees. This is good news for con­sumers: it will not only make it eas­ier for them to get an overview of the fees, but they will also be able to com­pare dif­fer­ent of­fers".

The 'Fee In­for­ma­tion Doc­u­ment' is a stan­dard­ised doc­u­ment with a short sum­mary pre­sent­ing the fees re­lated to most com­mon ser­vices, such as money trans­fers, that a bank will pro­vide cus­tomers with when they open a bank ac­count..

In ad­di­tion, EU con­sumers will also be re­ceiv­ing - at least an­nu­ally and free of charge - a 'State­ment of Fees', an in­for­ma­tion doc­u­ment fol­low­ing the same stan­dard­ised for­mat.

In this doc­u­ment, banks have to de­tail all ex­penses in­curred by their cus­tomers as well as in­for­ma­tion re­gard­ing the in­ter­est rates for ser­vices linked to a bank ac­count.

The Pay­ment Ac­counts Direc­tive re­quires all banks in the EU to present this doc­u­ment as of 31 Oc­to­ber 2018, ex­cept France and Italy, which al­ready have sim­i­lar in­for­ma­tion re­quire- ments in place and will im­ple­ment these changes by the end of July 2019.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.