Solon seeks end to depositor fines

A Caloocan City congressman is seeking the abolition of fines imposed by banks to depositors who fail to maintain the required minimum balance in their saving or current accounts.

Caloocan City Rep. Edgar R. Erice (second district) has filed the depositor-friendly House Bill 4005 after observing that practically all banks, local or foreign, government or private, are charging from P50 to P100 per month for dormant accounts.

The lawmaker said that the charges vary according to the bank’s category. Thrift banks and rural banks normally charge lower than those of the commercial or universal banks.

"This practice certainly discourages people from saving and depositing money in banks, especially poor people, who comprise the majority of bank depositors," Erice said.

He said these fines are onerous and discriminating, noting that small depositors are the usual victims of this unfair practice. The solon argued that the amount would sum up to billions of pesos considering the number of small depositors.

"Even if depositors maintain a balance below the required minimum, the banks still benefit from these accounts since in the end they still add up to their total resources," Erice pointed out.

He said charges and fines by the bank defeat the law on unclaimed deposits, which after due processing, are given to the national government to be used for public purposes as determined by Congress.

If passed into law, House Bill 4005 will penalize violators with three years in jail as maximum imprisonment and a fine of not less than P10,000 or both.