Weir slams banks for high fees, interest rates

Minister of Agriculture and Food Security Indar Weir has called on Government to address the banking sector’s unfair practices, exorbitant fees and the high interest rates applied to lending that are burdening the average Barbadian and small entrepreneurs.

Speaking during debate on the Fair Credit Reporting Bill, 2021 in the House of Assembly on Tuesday, Weir said the banking community had been getting away with this for too long.

He made specific reference to what he said were exorbitant interest rates and fees attached to credit cards, as he called on the Mia Mottley administration to urgently deal with the situation.

“We have a problem with credit cards in Barbados, and whilst this may be a global phenomenon, Barbados is a republic [and] we call our own shots as we exist in this world. I am afraid that what is happening with credit cards in Barbados must be addressed,” Weir said.

“You have the highest interest rates uncontrolled, you have late payment fees uncontrolled, and you have membership fees as well…. I strongly believe the time has come where credit cards should be reviewed. The entire structure needs reviewing.”

The Member of Parliament for St Philip South added that businesses were often slapped with additional charges, by banks, when customers used their cards for purchases.

He said business owners, more specifically small business owners, often lost out on profits because of these high extra fees.

“A business entity that takes a credit card issued by a financial institution is being charged 4, 5, 6 per cent of their revenue for allowing the convenience of a customer being able to pay with plastic. That charge may be very well what is causing the company to lose money and not secure a profit at the end of the financial year.

“Your profit might be ‘X’, the VAT on the transaction is 17.5 per cent, and then there may be other charges as well, all being added into one total. That six per cent is being applied to VAT and all other charges as well, not just the simple basic cost of the item,” Weir explained.

The Minister also pleaded with insurance companies to provide better medical coverage for persons living with noncommunicable diseases (NCDs).

“A person with NCDs needs insurance more than most, and if it comes at a cost, let it come at a cost; but to treat people as though they are not entitled because they have conditions that they have to battle with, we must also address [that],” he said. (SB)