BSP told to cut fees and charges

THE Independent Consumer and Competition Commission (ICCC) has called on Bank South Pacific to share some of its positive returns by reducing fees and charges to consumers.
The ICCC is of the view that the high interest rates on loans, bank fees and charges may have played a significant part in the highly-positive performance of BSP over the years. This call has come on the back of calls from consumers who are BSP customers of increased charges, says ICCC commissioner Paulus Ain.
“As the consumer watchdog, the ICCC is empowered under Section 6, 104, and 105 of the ICCC Act to represent the interests of consumers who are directly or indirectly affected by the goods or services provided by the businesses, in this case, Bank South Pacific,” he said.
Ain said that over the years, consumers had been complaining about increased bank fees and charges applied by BSP, including high interest loan rates.
“How can we encourage Papua New Guineans to have a savings culture when the banks continue to deduct their very savings in their accounts,” he said.
“This is unfair to the customers?
“This is commercial theft or robbery on the consumers and denying them the opportunity to make a reasonable savings.”
Ain said the ICCC has directly raised the issue with Bank South Pacific over the years.
“They keep on referring to its regulator, the Bank of Papua New Guinea, and issues relating to this have not been adequately addressed and the issues continue to remain,” he said.
BSP chief executive Robin Fleming said the bank had not increased its fees but instead had been dropping them for the past five years.