ECONOMY

Probe prompts cut in ATM bank fees

An investigation by the Competition Commitee into suspected price-fixing practices among the country’s banks appears to have paid dividends as lenders propose cutting charges on interbank cash machine transactions. Sources said lenders have proposed to the competition watchdog a reduction of charges of up to 50 percent on transactions conducted through the Dias interbank network. The banks have accepted a cutting of fees they charge each other and then pass on to the consumer, according to a source. This was one of the committee’s major areas of concern, the source added. Banks have recently come under close scrutiny from authorities for adopting practices that breach regulations and empty consumers’ pockets. Last month, the Development Ministry instructed banks to drop much of the fine print in loan contracts that has been ruled illegal by the courts. Lenders have been forbidden from charging clients fees that have been ruled by the courts as being an abuse of market power, such as penalizing customers for paying off loans early. In a seven-point proposal, which if adopted may enter into force in the coming months, banks have also suggested to the Competition Committee measures to boost transparency. Another key point involves changing the software system used in ATM screens so that customers are fully informed of charges they face if they go ahead with the transaction. It was not immediately clear how much the various changes would cost banks. The country’s competition watchdog has launched investigations in dozens of branches, in an effort to establish whether there are illegal price fixing practices. Some 52 branches are being targeted, including the beer, detergent and coastal shipping markets. Experts believe that one of the reasons Greece’s inflation rate – just below the 5 percent mark in June – is higher than in other eurozone countries is the lack of competition in key sectors of the economy.

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