I raise this matter because of the widespread concern at the ad hoc way in which new bank charges were introduced. There appears to be a lack of openness in regard to many of those charges and there was no consultation with customers. Allied Irish Banks introduced a charge of £20 for bank customers who have an overdraft facility. Modern technology is becoming more and more a part of the banking world, but there are many people who find cheque books and current accounts satisfactory. Those people should not be penalised if they wish to continue to use a cheque book. Many people are also concerned about the additional charge on credit cards. Those charges appear to conflict with consumer rights. A BBC television programme today revealed that an English consumer report found banks to be uncaring towards their customers. If a similar report was carried out in Ireland I am sure the findings would be the same. I do not object to bank charges or to banks making money. It is important for the economy that they do so.
I find it difficult to understand why a customer should be charged for a bank manager's time. A customer who calls to his or her bank to inquire about an overdraft or another matter will have to pay heavily for the manager's time. It is like asking a customer who buys goods in a shop to pay for the shop owner's time while he or she serves the customer, in addition to the price of the goods. I call on the Minister to incorporate a method of consultation and review of those charges in the consumer credit Bill. Such a review should be carried out on an ongoing basis. There is a great deal of concern about those charges.
I would like to see a change in the attitudes of banks towards their customers. What happened to the maxim that the customer is always right? That maxim has always been used by retailers and by business people, but in the case of banks it does not seem to apply any longer. Customers feel they are bullied and intimidated when they call to the banks to collect their money. Customers pay a good deal in bank charges, especially for an overdraft facility, yet they feel they are in a weak position in regard to a service for which they pay.
I do not wish to criticise the banks. I realise they are important to the economy. At present the banks are flush with funds and even though interest rates are very low they find it difficult to lend. People do not want to borrow because they do not want to have an overdraft. There is a lack of confidence on the part of bank customers. When confidence in the economy increases people will borrow money from the banks and invest. The banks have not acted justly in the introduction of the new bank charges. There are very few businesses where money is taken from the customer before receiving the bill.
