HSBC suspends €5 customer fee pending talks with Central Bank, MFSA

HSBC has suspended the €5 customer fee pending discussions with the Central Bank of Malta and Malta Financia Services Authority.

The CBM and MFSA said in a joint statement on Friday evening that they held a meeting with HSBC on Friday to discuss the recent announcement on changes to the bank's customer account fee structure.

"Discussions between the authorities and HSBC are still ongoing. The authorities have asked HSBC to reconsider its position. In the meantime, HSBC has agreed to temporarily suspend the customer contact programme in view of these ongoing discussions," the joint statement said.

On Thursday, HSBC customers received a note from the bank, informing them that if they do not deposit an amount of €2,300 over a period of three months they will incur a €5 fee. 

Those aged 61 or more will have to deposit at least €1,250 to avoid the fee.

The Consumers’ Association condemned the €5 fee for banking services by HSBC Malta, which it said targeted low-income earners and pensioners unfairly.

“We have a situation where the interest that banks give to consumers is ridiculous while they use consumers' money to lend and earn much higher interest than that give to depositors,” the CA said.

The association warned that soon additional charges could also be put into place to use the bank. “The biggest negative impact will be on those most vulnerable consumers. This will have an impact on those consumers whose income goes directly into an account of another bank.”

The GWU's pensioners section this evening also came out against the bank charge and warned that it would encourage people to seek alternative banks unless the fee was withdrawn.