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BBVA and Falabella will charge new commissions: why are banks changing their conditions?

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Recently the bank BBVA reported that as of November 30, a new maintenance fee will begin to be charged that even reaches the independence account, which was the only one that did not debit this type of additional amount. The financial entity has indicated that this charge of S/ 10 will be applied if an average balance is maintained of less than S/ 100 or US$ 30, which must be the monthly average and is not the one in the account on the last day. In this way, the BBVA no longer has any account options that are free of maintenance payments.

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In turn, the Falabella Bank It also announced that since November, CMR card users will have to pay a commission of S/ 2.90 for canceling their debts with debit cards from other banks, among other changes in their service policies. Therefore, the question arises as to what may have led these banks to modify their conditions of service and what is stipulated in the SBS (Superintendence of Banking, Insurance, and AFP) on the commissions that financial entities in Peru are allowed and prohibited to charge.

Why have banks started charging commissions?

Arturo García, professor of Finance at ESAN Graduate School of Business, commented that this could be due mainly to the fact that banks aim to encourage customers to allocate more funds on average in their savings accounts.

“Financial entities are financial intermediaries that capture and place, so they seek to capture resources via public deposits. These are the main source of financing for this type of activity: between 60% and 70% of the total financing of funding are these deposits because they are the source of resources with the lowest cost. What they hope is to encourage customers to allocate more funds on average in savings accounts and we also take into account that there are operating expenses and keeping accounts with very low average balances is not very profitable, ”said the specialist to La República.

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However, although the BBVA if it is empowered —according to SBS regulations— to add these amounts for maintenance and stop having accounts free of this additional charge, this may motivate other financial entities to join and change their commission policies. This scenario would lead customers to have fewer and fewer options for financial institutions that have commission-free savings accounts.

“Definitely, this is going to make the other entities review their policy of not charging. Many have it to motivate people to open these accounts, but it is in the balance between whether I charge commissions for clients to open more accounts, or if I charge to make those who have accounts have more funds in deposits, “said García to the be consulted about this possibility.

What does the SBS indicate about the commissions allowed and prohibited for banks?

The “Regulations for Market Conduct Management of the Financial System and the Regulations for Infractions and Sanctions of the Superintendence of Banking, Insurance and Private Pension Fund Administrators” approved in 2017 by the SBS specifies the commissions that entities are prohibited from charging . They are the following:

If you have a deposit, the bank cannot charge you commission or expense for:

  • Maintenance or administration of inactive accounts.
  • Return of a check badly drawn or without funds, in the case of checks from the same company.
  • Remission of deposits to the Deposit Insurance Fund.
  • Sending account statements by electronic means.
  • Charges in general, when the opening of the account is established as a requirement to make charges related to the payment of a credit.
  • In banking companies, interplace charges for cash withdrawal, through an ATM of the bank itself or at customer service windows in a location other than the city where the bank account was opened.

If you have a credit card or a loan, it is prohibited to charge for:

  • The credit evaluation carried out by the company before granting you a loan or a credit card, including consultation with the risk center.
  • Sending account statements by electronic means.
  • Make total or partial advance payments, or advance installments of your credit.
  • The issuance and delivery of the first proof of non-debt, once the entire credit has been paid. In the case of credit cards, when the total debt is paid and the contract is terminated, the first proof of no debt is always free.
  • Issuance and delivery of the proof of credit situation, when the financial institution has mistakenly reported the debtor to the SBS Risk Center.
  • Collection procedures through telephone calls, letters or visits to the home, notarial letters, or any other modality.
  • Charges other than default interest, for payment of obligations outside the due date, such as the penalty, among others.
  • Charges for evaluation, administration and/or management of the endorsed policy, in the case of credit relief insurance that is a condition for contracting a credit product.
  • Access and procedures associated with the treatment of clients with temporary difficulties in paying credits, within the framework of a declaration of a state of emergency.

If you have a credit card, financial institutions cannot charge you for:

  • The withdrawal of cash from your credit card.
  • Exceeding the maximum limit of your credit card line.
  • The maintenance or administration of your credit under the revolving system.

If you have loans, you are not allowed to charge for:

  • Disbursement of the borrowed amount.
  • Procedures associated with the evaluation, constitution and administration of guarantees in those credits conditioned to their constitution. For example: mortgage, vehicle, pledge, among others.
  • The issuance of the document (additional clause, minute, etc.) necessary for the removal of a guarantee (mortgage or security interest). You will only have to pay the expenses for notarial and registry services.

For customers and the general public, financial institutions cannot charge for:

  • The reception or management of bills and coins (whether by counting, centralization, verification, or other similar concepts) when carrying out any financial operation.
  • The processing of a claim.
  • Provide financial advice related to the offer, marketing or execution of a contract for financial products or services.

Source: Larepublica

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