Bank Charges

[Dave A]

Well, the report is finally out. Judging from share price reactions, it wasn't too bad for the banks. Probably the most interesting recommendation is a cap of R5.00 in bank charges for unmet debit orders.

I found this snippet enlightening, though.

It was apparent that the "legacy of discriminatory laws and practices of the past remains a challenge for the South African banking sector", said the panel.

"The South African banking landscape continues to reflect the fact that the majority of South Africans only enjoy limited access to banking facilities, with poor communities being neglected."

As an example, the panel cited the disparity in service provided to different communities: wealthy Sandton had 59 bank branches servicing 130 000 people, compared with one formal bank branch serving 175 000 people in predominantly poor Alexandra.
full report from Business Report here

You have to wonder about the level of business acumen that might be lurking in the panel.

How do you pay for the expenses of having a bank branch?

Does the amount of fees and interest earned relate to the number of people in the area, or the amount of money flowing through the accounts?

And then the panel also wants the banks to adopt a direct cost related fee model? What's wrong with this picture?

[IanF]

Dave
The one recommendation I heard about on the radio was to make it easier to cancel debit orders by just phoning. The abuse I have seen with debit orders is incredible. I even reported a company to my bank as they agreed to not debit me i still went and put a stop payment on it. Then it came through under a different name so I got the bank to reverse it. A year later they phoned me and asked for proof that I cancelled.
I swore at the person and told them to go away in short movements. Companies like that should not be able to use the facility.