Portugal’s banks lead a charmed corporate life. When they go bust, the taxpayer bails them out and when they are short of cash, they simply charge customers more.
A spiral of higher and higher charges and commissions, many “without justification,” has been identified by consumer watchdog, DECO, which reports that the top four banks last year charged customers an extra €90 million by way of various charges.
The costs of cheques in the five largest Portuguese banks increased 47% between 2015 and 2016 and annual debit card fees also rose way ahead of even the most generous inflation percentage.
According to DECO, there are fewer and fewer services that are free to use, such as home banking operations, many of which now are charged for even though they save costs for the banks .
And even if the money is stuck in the account, with no associated product or service, the banks are charging maintenance fees.
Last year alone, the four largest banks - CGD, BCP, BPI and Santander Totta - raised €1.37 billion in net fees, €90 million up on the year before.
‘Price inflation’ is the weak response from the nation’s bankers , even though the average increase in annual debit card fees has exceeded inflation by 56 times.
"There's nothing to justify this rise." DECO’s Nuno Rico argues. Firstly, the banks encourage the use of the debit card, which enabled banks to "save many millions of euros, both in terms of staff and in terms of physical structure", and then they end up charging customers "Which already exceed, on average, €15 a year."
Banks have started to charge for operations via homebanking, such as money transfers.
The economist says the banks "are looking to offset the revenues they have lost from their usual financial activity."
With historically low interest rates, banks "have turned to commissions as the new source of revenue."
"The banks no longer pay us, not even in interest, and oblige us to pay to place our money there."
BCP, the only bank brave enough to answer DECO’s questons, said it needs to money to guarantee the "quality of service."
The bank led by Nuno Amado also explained that the European regulation passed in 2015, which led to significant changes in the bank card business, caused a "significant decrease in revenues."
This had to be offset by "the increase in the value of the annual fee," which BCP sought to apply "progressively" to avoid "significant and sudden impacts for consumers" in other words, sneakily.
BCP says that no further adjustments are planned for current accounts or for bank cards, albeit with the proviso that the "continuous monitoring of the evolution of the business" may lead to further charges.
"The siege has been tightening and there are fewer and fewer ways of escaping these costs," says Nuno Rico, adding that the consumer needs to take a proactive attitude and look for "the cheapest solutions."
