FTC says it cannot prevent financial institutions from amending fees

The public is advised that the Fair Trading Commission does not have the authority to restrict any financial institution or business from amending its fee structure. Furthermore, the Commission does not set or authorise prices unless the matter falls under the portfolio of utility regulation.

Generally, the Commission’s role is to ensure that the terms and conditions given to consumers by enterprises do not contain unfair contractual clauses. The amount that is charged for a good or service is not considered when seeking to determine whether a clause is unfair.

While the Commission cannot address such matters, it does address instances where a business seeks to make an amendment, to fees or otherwise. Where a business fails to give customers adequate notice of amendments, this may be a breach of the Consumer Protection Act, CAP. 326 D.

The Commission, therefore, advises institutions that they must give timely and personal notification to consumers of impending changes via a medium which consumers readily and frequently access.

The public is invited to contact the Commission with any queries on these or other consumer matters at 424-0260.