BASSETERRE, St. Kitts – EARLIER this week, the local community was exposed to news that the Royal Bank of Canada would be implementing a $25 fee, plus VAT, on savings accounts. Since then, the situation has caused confusion for many customers who have been caught off guard, with questions lingering as no official clarification has been forthcoming from authorities of the financial institution.
What do we know about the RBC situation?
The proposed fees on certain savings accounts are scheduled to take effect on Monday, May 23, 2016 and this would mean that about $351 would be deducted annually from any account to which it is applied.
SKNVibes is not aware of any official statement issued by the Royal Bank of Canada indicating to its customers that this new service charge would be applied to specified savings accounts. However, some customers have indicated that they only became aware of proposed charges when visiting the institution to conduct routine business.
At least two media houses, including this one, had made attempts to get information from the Bank’s management, including Country Manager Chad Allen, but to date he has remained mum.
Since Tuesday (May 17), at certain times of the day, lines of people have been observed at the RBC Fort Street and Wellington Road branches, of depositors seeking information, or to close their accounts with the financial institution. This situation is however not limited to St. Kitts and Nevis but also other Eastern Caribbean territories including St. Vincent and the Grenadines.
To date, SKNVibes has not received any report of customers being denied when they went to withdraw their monies.
Questions were asked about whether the Government of St. Kitts and Nevis could and or should intervene in the matter to protect the rights of consumers. On May 20th, a press release was issued by the Prime Minister’s Press Secretary indicating that the Eastern Caribbean Central Bank should respond to the situation at hand.
Questions are also being raised about what, if anything, the ECCB could do to either correct or address the situation given limits within current governing regulations and banking acts provisions.
Members of Her Majesty’s Loyal Opposition have been making calls for Prime Minister Dr. the Hon. Timothy S. Harris to agitate for the Eastern Caribbean Central Union (ECCU) to convene a meeting to discuss the issue.
While there appears to have been no prior statement/release issued by the RBC to inform of the impending charge, SKNVibes understands that one was issued yesterday by the RBC branch in Trinidad.
And while not specifically addressing the $25 service charge, it indicates: “Regarding the revision of fees attached to some of the products in the deposit suite, RBC recognizes that any change in pricing or fees is a sensitive topic for clients and we work hard to keep costs down. On an annual basis we review our products and services and sometimes adjust the pricing to reflect the cost of doing business.
We believe we continue to deliver good value and competitive pricing and we encourage our clients to call us or visit their branch and meet with their financial advisor to ensure they have the banking options and advice that best meet their needs.”
This media house is actively seeking to obtain information from the RBC, the ECCB and financial/banking experts with the hope of shedding some light on the current situation.
