THE DECISION by Bank of Ireland to overhaul its fee structure for current account customers has been criticised by consumer groups.
As a result of the changes announced yesterday some of the bank’s customers will have to pay fees and charges for the first time.
The bank has defended the changes and insisted most of its customers will still be able to avail of free banking.
From February 21st, customers who lodge at least €3,000 into their current accounts over the course of a quarter and make nine debit payments from that account using the bank’s phone and online services over the same period will be exempt from charges.
Customers who maintain a minimum credit balance of €3,000 in their current accounts throughout the full quarter will also avoid bank fees and charges.
At present, customers qualify for free banking if they conduct just three online or telephone transactions per quarter or keep a minimum of €500 credit in their account during the fee quarter.
Customers who do not meet the new criteria – with the exception of Golden Years and student account holders – will be charged 28 cent for each transaction. Nearly three-quarters of the bank’s 1.2 million current account holders could be forced to pay the fees if they do not meet the terms.
The bank said it had to bear significant cost in connection with current accounts but insisted the changes would not negatively impact on many of its customers. They were “designed to offer any customer who conducts the majority of their day-to-day banking transactions with Bank of Ireland the opportunity to enjoy the benefits of the free transactions offer. The low minimum turnover will ensure most customers can qualify and is the equivalent of a €1,000 salary lodgement plus three payments by telephone or online per month.”
The introduction of fees for customers who fail to meet “stringent new rules is another knock-on effect of our failed banking system”, said National Consumer Agency chief executive Ann Fitzgerald.
Consumers who are not happy with the new charges “have time to look at the charges and compare accounts that are available with other banks”. She said that even though there are fewer banks in the market, it is still possible to avoid transaction fees.
“There will be many loyal customers of Bank of Ireland who have got free banking who will be asked to pay additional charges,” chief executive of the Consumer Association of Ireland (CAI) Dermott Jewell said. “It is a clear message that consumers should not expect loyalty, so if loyalty is gone then we in the CAI believe Bank of Ireland customers should look towards switching to banks which offer better value for money.”
Fine Gael spokesman on banking Damien English said: “The introduction of such severe new rules for Bank of Ireland customers will see many people having to pay bank charges for the first time and is another example of banks unfairly passing costs on to the user.”
He said Ireland already had some of the highest banking charges in Europe.
