More Abusive Bank Practices

Abanca, Bankinter, Barclays, La Caixa, Cajasur Banco, Kutxabank, Mare Nostrum (BMN), Popular, Sabadell, Santander y Unicaja have all been denounced by one of the largest consumer organisations in Spain for applying abusive charges on payments made by account holders through the cashier services of the bank.

Mentioned banks charge from 1,5 to 4 euros for the simple addition of a concept (description of the payment, invoice reference number) or name to the cash payment into the account of another person or company. Highest charges for payments into accounts from another bank entity. This method of payment is often used for invoices re community charges, club memberships etc.

The consumer organisation claims that the banks charge double for this service: firstly the person receiving the payment as he/she already pays for maintenance of his/her account, and secondly the person making the payment as he/she is charged as well.

The banks regard the addition of a concept or a name to the payment a ´special or additional´ service and the charges thus justifiable.

The Bank of Spain´s ´Memoria de Servicios de Reclamaciones de Consumidores of 2012´ states however that the payment in cash into an account of the same bank entity is considered a service, inherent to the contract for the bank account and thus cannot be charged independently. To be precise, as the cashier services are paid for by the maintenance charges to the account, any other commissions are deemed unfounded.

Moreover, Spain´s Consumer Law (art. 2) states that it is prohibited to include clauses that impose costly or desproportionate obstacles to consumers re exercising the rights recognised to consumers in the contract.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.