Bank does u-turn on cash-point charge plan

14th January 2005, Comments 0 comments

14 January 2005, MADRID-The Banco Popular has changed its mind over controversial plans to charge customers for using cash machines.

14 January 2005

MADRID-The Banco Popular has changed its mind over controversial plans to charge customers for using cash machines.

The bank announced earlier this week it was planning to charge up to 30 centimes for each transaction – the first time any Spanish bank had planned to do this.

But it said on Friday it had abandoned these plans.

The move came amid widespread criticism of the unpopular move.

But in a statement, the Banco Popular did not rule out the possibility that it might introduce the charges in the future.

The measure was criticised by consumers' associations and groups representing financial service users.

The Banco Popular had argued that a 'commission charge' was legitimate because of the costs of maintaining cash machines.

But the Association of Bank Service Users attacked what it called an "illegal" measure, introduced without consulting clients.

In Spain, the Bank of Spain does not have to authorize the introduction of charges like this.

Banks simply have to inform the Bank of Spain to demonstrate 'transparency'.

Banks and savings banks have introduced a series of charges for financial services in the past few years.

The Banco Popular and Bacno Santader already charge customers for using some cash-points if they do not have an account with them.

[Copyright EFE with Expatica]

Subject: Spanish news

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