BCEN wants greater protection for consumers using online banking services

Barbados Consumer Empowerment Network (BCEN) is calling for further public discourse and disclosure so as to ensure even greater consumer protection for consumers using online banking services.

In a statement on Sunday, BCEN said this call is being made because there is reason to believe and evidence to support that as of Saturday, January 6, a commercial bank in Barbados, already involved in the practice of charging fees for local online banking services continues to do so; despite the recent edict from the Central Bank of Barbados to desist from such practices.

As a result,  BCEN said it is concerned about commercial banks failing to comply with the recent edict or directive issued by the Central Bank of Barbados.

Although BCEN remains hopeful that commercial banks will comply with the Central Bank’s directive, failure to comply should serve as an indication that the Central Bank needs to intensify its supervision and surveillance to ensure that all Banks in Barbados comply. Along with monetary penalties or in lieu of such, BCEN is also of the view that the Central Bank of Barbados should consider the use of temporary suspension measures for specific online banking services until the matter of failing to comply is resolved. BCEN believes that such action could serve as a strong incentive for prompt compliance from commercial banks.

According to the BCEN, by now discussions should have been ensuing between the Central Bank and any commercial Bank that fails to comply and has been in the practice of charging fees for local online Banking transactions. During such discussions that the Central Bank of Barbados should mandate the bank to submit a detailed remediation plan outlining how it intends to address and rectify violations within a specific time period.

BCEN also recommends that any fees that were charged between the date that the edict was announced and the time within which the practice is discontinued; that customers be refunded.  Should there be any further delays or resistance, BCEN hopes that the Central Bank of Barbados would publicly disclose the name of the Bank, the non-compliance issue, specific violations, and the measures that would be taken – if any – against- non-compliant Bank(s). This type of public disclosure could impact on the commercial bank’s reputation which could lead to increased pressure to comply.

The Barbados Consumer Empowerment Network says it understands that the specific actions taken by the Central Bank of Barbados will depend on the legal framework within which the Bank operates and the severity of the violation, and the Central Bank’s assessment of the potential impact on the stability and integrity of the financial system.

Nonetheless, BCEN supports the objective of the Central Bank to enforce compliance with regards to its edict and acknowledges the Central Bank’s commitment to take action to protect the interests of consumers and the overall financial system that it regulates in Barbados.

(PR)