Changes in the banking system
Addressing the 'Add- On' Interest Rate Issue
Reduction of banking fees
Addressing confidentiality
Resolution of an interest claim
Dealing with banking authorization inconvenience
PIRG's Discontentment with the Banking Services Ombudsman


Changes in the banking system

While Trinidad bankers are too aloof to admit it, and do not directly respond to letters from PIRG, we have seen remarkable changes in the system since our inception. Consumers regularly call or write to congratulate us, and the Ministry of Consumer Affairs advised that they too have seen a reduction in the number of complaints since we started to publicly highlight the relevant malpractices while educating consumers. Bankers are more aware than ever that they are now under public scrutiny, with greater threat of litigation against them by the very consumers they abuse.

Addressing the 'Add-On' Interest Rate Issue

Former Citi-banker now consumer advocate VED SEEREERAM, shared with us and the general public through his enlightening articles in the Trinidad Guardian valuable information on the ADD-ON interest rate which can best be described as deliberately deceptive and misleading or “Bait and Switch”, and advocated that the APR (Annual Percentage Rate) should be used as it gives the true cost of borrowing. We recently wrote to Scotia Bank congratulating them for setting the precedent in moving from this illusory advertising while being honest in pointing out its dangers, promising to adopt only the APR. That was indeed a victory for the consumer, thanks mainly to Mr. Seereeram who has suffered immensely for going public about banking practices in Trinidad .

Reduction of banking fees

Banks have reduced some fees, dismissed completely its utility bill payment fees which were always the responsibility of the utility service provider, reduced the time allotted cheques to clear, and became a little more communicative with its customers, albeit not obligated to be transparent enough. Following PIRG'S launch Republic Bank publicly announced "a reduction of fees on 15 of our financial products".

Addressing confidentiality

We bombarded them with numerous letters and brought to the attention of the authorities their insolence in publicly humiliating their customers by punitively listing consumer's names in the newspapers merely because they couldn't make timely payments to satisfy the bank's bottom line, be it “FOR SALE BY MORTGAGEE” or “REQUEST TO CONTACT”. We did the same for their listing the complete number plate of repossessed vehicles, citing that they could still sell the particular car by listing only the alphabet section not followed by the numerical identifying the owners so as to publicly embarrass consumers and their families. We threatened them to join forces with Trade Unions and others to march in front their branches, to which they quietly acquiesced, albeit contemptuously not responding to PIRG.

Resolution of an interest claim

We got a bank to drop its claim for $12,000 interest against an ailing couple having already paid the bank $67,000 principal and over $18,000 in interest pointing out the bank's ulterior motives of entrapment by demanding the couple visit another branch to commit to the interest payment after a failed and improper levy attempt at the home of its Directors on whom they previously extracted a personal guarantee.

Dealing with banking authorization inconvenience

Another client visited the West Mall branch of his bank to deposit an $800,000 cheque and withdraw $75,000 as the drawer held an account at its Maraval branch. The teller told him he could deposit but couldn't withdraw since his account was at Maraval. Had he gone to his Maraval branch, they would have told him he could deposit but not withdraw since they “couldn't clear the signature at West Mall”, oblivious to the inconvenience of its valued customer. Knowing about PIRG and now feeling empowered, he became vociferous, demanding his funds, threatening to call in PIRG and the media, to which they finally acquiesced after flipping to and fro.

PIRG advocated for and proffered proposals to the Ministry of Legal Affairs for the establishment of a FINANCIAL SERVICES OMBUDSMAN, albeit the Central Bank moved with stealth and instead appointed a BANKING SERVICES OMBUDSMAN with limited powers under questionable circumstances.

PIRG'S Discontentment with the Banking Services Ombudsman

Apart from those stated in our recent advertisements, a Banking Services Ombudsman (BSO) now the Financial Services Ombudsman ( FSO ) is inherently a guardian of consumer rights and protection. Unfortunately, media statements attributed this candidate eliminates the pivotal confidence in the required impartiality, and appear as a contract between employer/employee.

In the public's best interest, part of the FSO's mandate SHOULD be the keeping of statistical banking information as a guide to know which of our Six local banks generate more complaints in any specific banking area, and use this valuable information as a consumer tool to both exert change, and further guide consumers to the best available banking products and services, as you would direct the buyer of automobiles and other durables.

The fact that the FSO has limited if not paltry powers merely as a window dressing exercise and would only mediate in banking malpractices AFTER January 2003 is a great disadvantage and a travesty of justice to consumers, many of whom simply CANNOT afford legal cost to obtain justice. One attorney admonished a crying widow seeking transparency in her deceased husband's estate involving a bank “Woman you want me to sue the bank for you, is they who have me in business yuh know". And there is a group of Attorneys who go against their sworn Oath by misbalancing the scales of Justice in seeking by seeking more to protect the bank and its huge fees paid to them for their service, than of seeking to dispense justice for the blatantly aggrieved. This policy also applies in the bank's internal/in-house Attorneys who would instruct public attorneys, all the while frustrating the aggrieved and penurious consumer to cave in and give up. Banks are powerful indeed, at times attracting unscrupulous people to do its dirty bidding.

Absolutely no communication was sought from the general public on this appointment, which appeared to be an exclusive agreement between Banking regulators and the Commercial banks merely to appease escalating complaints. PIRG being a known and formidable proponent was deliberately not consulted in the most puerile manner, “because they find our language and positions on the issues too strong”. But PIRG will not use fine words and eloquent phases to appease our stubborn banking regulators steeped in colonialism when big, powerful, deep pocketed and arrogant local bankers are blatantly ripping off and abusing consumers while filling their overbulging pockets and that of their selected clique, all at the expense of the masses and the overall economy as highlighted by the IMF in their 1997 report.

We expressed serious concerns in our communications to the Honorable Minister of Legal/Consumer Affairs that the establishment of this office should not be done in a vacuum, since banking reform was a necessary pre-requisite for the overall success of this office.

This reform which PIRG proffered would include the following:

•  FAIR CREDIT REPORTING ACT

•  FAIR DEBT COLLECTION PRACTICES ACT

•  ENCASHMENT OF SAME BANK CHEQUE AT ANY OF ITS BRANCHES

•  A BANKRUPTCY PROTECTION ACT

•  CREDIT GRADING SYSTEM

•  EXPEDITED FUNDS AVAILIBILITY ACT.

•  GREATER COMMUNICATION & HONESTY between a Bank and its customer.