The Consumer Protection Association (CPA) has revealed that it is working to put an end to banks charging Hafiz beneficiaries extra service fees.

“Hafiz beneficiaries are forced to open bank accounts and obtain an ATM card to be eligible for the program and collect benefits. On top of this they are then charged monthly service fees ranging from SR 50 to SR 200 by banks, which can amount to 10 percent of their monthly stipend,” Nasser Al-Tuwaim, chairman of the CPA told Arab News, adding that with 1-1.5 million Hafiz beneficiaries registered in the program, banks are able to make millions without actually offering extra services.

He added that the CPA is currently conducting a study that will be completed in September or October, examining the reasons behind banks charging extra service fees for renewing ATM cards and other services, calling them profit charges.

Al-Tuwaim stated that when the study concludes, the information and findings would be compiled into a report to provide consumers with adequate information regarding which banking services to choose and insight about 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 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.

In related news, the CPA has also called for restaurants to stop charging patrons service fees for normal services.

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.