Dear Editor,
Let me start by saying that I have worked in the banking system for many years, and today I see certain things happening that need the attention of the authorities.
First of all, some of the local banks are applying some unexplainable “rip off” tactics to the consumers who use their bankcards to make local payments.
When a WIB Bank cardholder uses his/her bankcard at a merchant that uses an RBC bank machine for a US dollars transaction, their account at WIB is charged an additional amount on the transaction.
For example; when a WIB client makes a purchase of $100 at a merchant with an RBC machine, the account at WIB is charged $102.25 Why? Because the system multiplies the US dollars amount by 1.82 to arrive at the NAf. equivalent of NAf. 182 and then re-converts this amount back to US dollars by dividing it by 1.78 and thus the US dollars account at WIB is charged $102.25
I believe that it is the RBC Bank system that uses this “rip off” tactic, because when a WIB Bank card is used at a merchant using the WIB Bank machine, the difference does not occur. It is incorrect to convert the US dollars amount by 1.82 as this figure includes the 1% exchange tax that is collected by the bank on behalf of the government. Does the bank really transfer these revenues to the government’s coffers? I doubt it!
Republic Bank too has a similar “rip off” scam going on. When Republic Bank clients use their bankcard at any merchant for US dollars transactions, they are charged an additional 1% on the amount of their purchase. Again, I query if these funds are reaching government’s coffers. So, both citizens and government are being “ripped off” while the bank is profiting from these illegal practices.
Another concern is that a particular local bank has started closing accounts from people who live and work on the Northern (French) side of the island. These long-time clients of the bank are being told that they must own property on the Southern (Dutch) side of the island in order to maintain their account at the particular bank. Are the authorities aware of this practice?
The last concern that I will address in the letter is the bank’s buying rate for euros. At least one bank on the island buys the euros at the rate issued by the Central Bank of Curaçao and St. Maarten, but then deducts an additional 2% from the converted amount. I wonder if this is a legal practice. The rates established by the Central Bank are the rates to be applied. Are the banks allowed to add additional charges to the rates?
Government needs to ensure that the Central Bank is actively looking into the practices of the local banks. As it is, it seems that the banks are allowed to add charges to the currency rates determined by the Central Bank, they can decide on the conditions to open and maintain accounts, they can close long-existing clients’ accounts, they can apply extra charges to electronic transactions, and the list goes on, while we, the people, are being ripped off unconsciously.
Fernando Clark
