The Consumer Protection Association (CPA) has announced that it is currently conducting a study to investigate the application of extra service charges and other fees by the Kingdom’s banks.

“We have launched an investigation that has been ongoing for several months due to a large number of consumer complaints. Consumers simply do not understand why they have been charged extra service fees in local banks for services such as having an expired ATM card renewed or are excessively overcharged when paying the minimum monthly charge on a credit card balance or “profit charges” as is being stipulated by banks,” Nasser Al-Tuwaim, chairman of the CPA, told Arab News.

He added that to date, the study has found that even Hafiz beneficiaries are among the victims of excessive bank fees. “The Hafiz beneficiaries are forced to open bank accounts and obtain an ATM card to be eligible to apply and collect monthly unemployment benefits and then are being charged monthly service fees ranging from SR 50 to SR 200 by banks. To citizens who are financially limited or have no income, these extra fees are unfair and can amount to hitting beneficiaries hard,” Al-Tuwaim explained.

Al-Tuwaim further commented that with approximately 1 million to 1.5 million Hafiz beneficiaries, banks are getting away with millions of riyals for doing next to nothing. “The CPA, upon finalizing the study, will contact the Saudi Arabian Monetary Agency (SAMA) to ask them to take control of the situation and waive bank service fees for Hafiz beneficiaries and stop banks from charging for ATM cards and for simply allowing consumers to open an account,” he said.

The chairman added that when the study concludes, the CPA will also begin compiling the findings into a report to allow consumers to have information when choosing banking services and to know their rights. “The report will also include information outlining banking policies concerning grace periods, credit cards, loans, installment plans and stipulations on savings and checking accounts, in addition to tips on how to keep credit card account information safe to avoid fraud,” he said.

Al-Tuwain concluded by saying that he would like to specifically advise consumers to read bank statements carefully and to contact local banks to demand an explanation for extra service fees. “Many people do not read their bank statements and therefore never notice that extra charges have been levied, but with most, if not all of the banks in the Kingdom being Shariah-compliant, it is still impermissible for them to take interest or any type of extra service fees,” he said.

Consumers wishing to report overcharges of bank fees or any other consumer-related issue can do so by contacting the CPA on 01 4563666 or by fax on 01 4507677 or via the organization’s website at: www.cpa.org.sa.