SA Banking Fees Remain High

December 30 - Despite ongoing complaints by consumers, there is very little the South African Ombudsman office can do about the high banking fees in the country.

Banking fees in South Africa remain among the highest in the world and it seems that there will be little change in the near future.

"I do not think we will ever stop getting complaints about banks and especially  high banking charges, said Johan Simpson, the Complaints Investigation Manager for the Banking Ombudsman office.

"It is a continuous problem," he added.

According to Simpson, the bulk of bank charges are unregulated in South Africa, although some are regulated by the National Credit Act.

The factor that dictates the fees charged by banks, it seems, is merely competition between different financial institutions.

"There are no laws, no regulations, giving a ceiling to the amounts the banks may charge," said Simpson. "It is regulated only by the competition between the banks."

The Ombudsman office receives complaints from angry consumers who are disgusted with the high fees charged on bank loans, deposit fees and others.

Simpson said that banks charge for practically every single transaction.

"The unfortunate thing is that we, as the banking ombudsman, have no power to regulate banking charges... only the government can really regulate banking charges," he said.

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12/30/2009 8:21:58 AM