News
Groundbreaking discussion for banking code in Caribbean
09 Feb 2012
The Minister of Industry, Investment and Commerce of
Jamaica has endorsed several key elements of a draft banking code
for the Caribbean, following long term discussions with Consumers
International. The final code would be a groundbreaking win for
consumers, bringing greater clarity and plain language to banking
fees, contract terms and service standards.
The Honourable Anthony Hylton has invited
all stakeholders to work together to develop a progressive code,
which would embody international best practices and be acceptable
to the banking sector and consumers alike.
Catalyst for a new banking code
Addressing a consultation on the draft banking code at the
Courtleigh Hotel in Kingston, on 19 January 2012, the Minister
reflected on the 2010 Consumer Affairs Commission (CAC) survey of
bank charges and observed that the findings provided the "catalyst
for the development of the proposed banking code."
Financial services in the Caribbean
The development of the code is part of the 'Promotion of
Consumer Protection in the Caribbean' project, funded by the
Inter-American Development Bank (IDB), which involves Jamaica,
Barbados and Trinidad and Tobago. It is a key step in the ongoing
work on financial services in the Caribbean region by Consumers International.
Regional Project Coordinator, Consumer International, Candice
Ramessar, emphasised that the draft code is not an attempt to
coerce the banking sector, but rather to encourage them to adopt
practices and principles that are in the best interest of the banks
as well as their customers.
The code
The draft code contains 11 key commitments, which include
providing clarity on:
- non-discriminatory access
- service standards
- product information
- credit information
- variation in fees and charges
- provisions for elderly
- disabled and pregnant consumers,
- and dispute resolution.
Highlights of the code
Among the key commitments of the draft code is a requirement
that banks should display service standards at their branches and
on their websites, as well as make copies available on request.
Terms and conditions of contracts should be fair and should set
out both parties' rights and responsibilities in plain and simple
language, while legal and technical terms should only be used if
necessary.
The code also states that banks will provide notification of
changes in fees and charges at least 60 days before they are to
take effect. ATMs are to display all fees associated with each
transaction prior to the completion of the transactions.