Amid growing concerns that new banking fees announced last month are expensive, the Competition and Fair Trading Commission (CFTC) has chimed in and agreed, stating that the fees are ‘extreme’.
Speaking to The Daily Times newspaper, CFTC spokesperson Innocent Helema said they have noted that some charges are excessive and do not re§ect the cost of providing the services. “This practice may border on unreasonable or unconscionable conduct which is prohibited under Section 43 of the Competition and Fair Trading Act,” he said, adding that some fees are not reversed once the service has been reversed.
The reservations by CFTC followed after Consumers Association of Association of Malawi (Cama) addressed the service fees hike, attributing it to one of the reasons many Malawians remain unbanked. “The ever-rising bank charges by our commercial banks are the reason behind the high rates of financial exclusion.” said Cama executive director John Kapito, “Malawi has the lowest number of depositors in the region due to these many and high charges a depositor is demanded to pay.”