Anger over delay to action on bank charges

Date: 25/05/2000

By Renée Cordes

COMPETITION Commissioner Mario Monti has come under fresh attack for failing to crack down on banks accused of overcharging, following publication of a "disturbing" new report on the fees paid by customers who change money within the 11-country euro-zone.

Anger over Commission 'foot-dragging' has been fuelled by the survey, ordered by the EU executive, which revealed that customers are paying an average of €17.10 for a €100 credit transfer from one euro-zone country to another, with many banks charging twice for the same transaction by levying fees on both the sender and the recipient.

The report prompted warnings from Consumer Protection Commissioner David Byrne and his internal market counterpart Frits Bolkestein that the EU executive might open infringement proceedings against member states which failed to implement Union legislation banning double charging. There is already one such case pending against Italy. "The results of this survey are disturbing," they said in a joint statement, adding: "It is not sufficient for member states to simply put the directive on their statute books. They have an obligation to ensure that its provisions are applied in practice."

However, the findings of a parallel investigation by Monti's officials into allegations that banks in the euro zone were colluding to inflate the charges for exchanging currencies have yet to be revealed - three months after the Commission said it would decide what action, if any, to take "within weeks".

The probe, which began shortly after the single currency was launched, led to raids on banks in Germany, France, Italy and Spain last February, followed by further surprise inspections at financial institutions in the Netherlands, Belgium and Ireland in October.

Competition officials said in February this year that 'statements of objections' - the first step in legal proceedings - would probably be sent to financial institutions in at least three member states within a month. But officials said this week that they were in "no rush" to take action, despite mounting pressure to do so. "Obviously this is taking longer than we thought, but we want to make sure that we have our facts right," said a spokeswoman, refusing to speculate on when an announcement would be made.

The delay has been attacked by MEPs and consumer groups, who will underline their concerns at an informal meeting with Commission and banking industry officials today (25 May).

"At all our meetings we make this appeal to Mr Monti and he keeps saying that soon there will be evidence," said German Socialist MEP Christa Randzio-Plath, who chairs the assembly's economic and monetary affairs committee and complained repeatedly last year about the slow pace of the investigation. "It is really time for us to get the answers and find out what is happening."

Competition Commissioner Mario Monti has come under fresh attack for failing to crack down on banks accused of overcharging, following publication of a 'disturbing' new report on the fees paid by customers who change money within the 11-country euro-zone.