RBC Raising Bank Fees
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New bank fees target kids' accounts and allow 'double-dipping,'
Banking fees are going up at all of Canada's five big banks, but some customers of RBC in particular are outraged about the changes. They're accusing Canada's biggest bank of targeting children and those who can least afford it.
Gordon and Elaine Murray from Glen Margaret, N.S., have been RBC customers for 20 years. It took one envelope in the mail the other day to get them thinking about changing.
Inside that envelope, Elaine Murray found the flyer Royal Bank of Canada recently mailed to many of its 16
million clients outlining the fee changes on the way.
"I couldn't believe it — it just seemed outrageous," she says.
Fee hikes June 1
On June 1, RBC is introducing new or higher fees for a variety of accounts and transactions including debit purchases, mortgage and loan payments and children's accounts.
The bank is also increasing the age eligibility for seniors' rebates from 60 to 65.
Elaine Murray and her husband have several accounts, insurance and a mortgage with RBC. The first thing they noticed is the new fee being added to mortgage payments, on top of the interest already being charged.
'Double-dipping'
"It looked like double-dipping when I saw that we could be paying on top of our interest a fee for making our mortgage payments," Gordon Murray says.
The fee increases may only be a dollar here and there, but he says any additional money being taken from customers is too much, especially from a bank that just announced a record $2.46-billion profit.
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New bank fees target kids' accounts and allow 'double-dipping,' say customers - Canada - CBC News
Banking fees are going up at all of Canada's five big banks, but some customers of RBC in particular are outraged about the changes. They're accusing Canada's biggest bank of targeting children and those who can least afford it.
Gordon and Elaine Murray from Glen Margaret, N.S., have been RBC customers for 20 years. It took one envelope in the mail the other day to get them thinking about changing.
Inside that envelope, Elaine Murray found the flyer Royal Bank of Canada recently mailed to many of its 16
million clients outlining the fee changes on the way.
"I couldn't believe it — it just seemed outrageous," she says.
Fee hikes June 1
On June 1, RBC is introducing new or higher fees for a variety of accounts and transactions including debit purchases, mortgage and loan payments and children's accounts.
The bank is also increasing the age eligibility for seniors' rebates from 60 to 65.
Elaine Murray and her husband have several accounts, insurance and a mortgage with RBC. The first thing they noticed is the new fee being added to mortgage payments, on top of the interest already being charged.
'Double-dipping'
"It looked like double-dipping when I saw that we could be paying on top of our interest a fee for making our mortgage payments," Gordon Murray says.
The fee increases may only be a dollar here and there, but he says any additional money being taken from customers is too much, especially from a bank that just announced a record $2.46-billion profit.
more
New bank fees target kids' accounts and allow 'double-dipping,' say customers - Canada - CBC News
That's what I told my 90- year old Mother but she doesn't seem to want to..........
RBC forced to scrap fee changes after backlash
Consumer advocates rejoiced after Royal Bank of Canada backed down on proposed fee changes that would have potentially charged consumers for the privilege of paying credit-card bills and their mortgages.
“It’s a great day,” said Andrew Cash, the New Democratic Party MP who has called on Ottawa to end the so-called “pay-to-pay” practices among banks and others.
“RBC may have blinked here and we’ll see if the other banks follow suit,” Mr. Cash said.
All the big banks raised their banking fees this year, drawing criticism from some observers who questioned the need for higher transaction costs at a time when most banks reported record-high profits in their first-quarter results.
But some of the changes went beyond higher charges and widened the scope of what transactions would be eligible for charges, making them particularly egregious among some observers.
In the case of RBC, certain payments would be counted toward a customer’s monthly limit of transactions, potentially charging consumers for paying their bills.
“We are listening to our clients and will not include transactions like mortgage and loan payments as debit transactions,” RBC said in a statement. “The impact of not proceeding with these changes will be modest, as most of our clients are already in accounts with unlimited transactions.”
RBC forced to scrap fee changes after backlash - The Globe and Mail