OTTAWA, Ontario -- The Financial Consumer Agency of Canada (FCAC) received 1,146 complaints and inquiries relating to bank fees from January through March 2003, up from just 104 in the previous three months, according to a CBC News report.
Complaints and inquiries were up in almost all categories, but the biggest jump by far was related to the convenience fees now charged by many banks when non-customers use their ATMs.
The fee, typically $1.25 to $1.50, was widely adopted by banks in 2002 after its introduction by independent ATM operators. White-label operators have collected fees at their machines since 1996.
A survey of costs issued by FCAC this year said the combined total -- including surcharges and foreign fees -- could run as high as $5.50 on a single transaction.
The FCAC, set up as a watchdog on the financial services industry, has no regulatory authority over the fees banks and other financial institutions charge. "What we can do and have done is get follow up information on ABM fees and provide information to consumers," said Martin Pacheco, a consumer education official at FCAC.
Last month the agency posted a chart of ATM fees charged by banks and white-label operators on its Web site under its "cost of banking" guide.
Another hot topic among consumers was credit cards, according to the CBC News. Complaints over credit cards were up 15 percent in 2003's first quarter and included a relatively new issue: fees charged for transferring their credit card balances on some promotional offers. The fees vary but can be as high as 3 percent of the outstanding balance, Pacheco said.
According to Pacheco, the FCAC intends to provide more information in a report in the next month or two about credit card promotions encouraging consumers to transfer their balances from other cards by offering low interest rates for a few months.
