# CE2004065EN.01022101.xml

| 13.3.2004 | EN | Official Journal of the European Union | CE 65/221 |
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13.3.2004

EN

Official Journal of the European Union

CE 65/221

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(2004/C 65 E/235)

WRITTEN QUESTION E-2814/03

by Elisabeth Jeggle (PPE-DE) to the Commission

(19 September 2003)

Subject:   Charges for bank transfers between Germany and the United Kingdom

Subject:

On 1 July 2003, in Germany at least, an EU measure was introduced making the cost of bank transfers to another EU country the same as that of domestic transfers. This is intended to save customers money.

A German citizen transferred EUR 50 to the United Kingdom and paid a EUR 3 charge to the German bank and a further GBP 10 to Alliance and Leicester International.

Prior to 1 July 2003, the citizen paid a total of only EUR 7,50 for the transfer of EUR 50.

This raises the following questions:

| 1. | Is it possible that the UK has not introduced this EU regulation, or is it getting round it by using the term ‘handling charge’ in place of ‘transfer charge’? |
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1.

Is it possible that the UK has not introduced this EU regulation, or is it getting round it by using the term ‘handling charge’ in place of ‘transfer charge’?

| 2. | Is a ‘handling fee’ of GBP 10 for the transfer of a small sum not a case of daylight robbery? |
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2.

Is a ‘handling fee’ of GBP 10 for the transfer of a small sum not a case of daylight robbery?

Answer given by Mr Bolkestein on behalf of the Commission

(30 October 2003)

(30 October 2003)

| 1. | As a general remark, the principle of the equality of charges for cross-border and corresponding national transfers, which is the subject of this question, is based on Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro (1). Given that the provisions of the Regulation are directly applicable in the Member States, there is no need for transposition by the Member States. The banks concerned are already bound by the provisions of the Regulation.
  The Regulation must also be observed in the United Kingdom for cross-border payments in euro, although pound-euro conversion costs may be charged on cross-border transfers in euro from and to the United Kingdom. In this respect, if the currency has to be converted, then a transfer from Germany to the United Kingdom will be more expensive than a national euro transfer. Under the Regulation, the bank is obliged to inform its customers of these exchange charges.
  In this specific case, it is not possible to establish from the information given in the Written Question whether the provisions of the Regulation have been observed by the banks concerned. The Commission would, however, be happy to accept and investigate any further information which Ms Jeggle or the citizen concerned may provide (e.g. account statements, lists of charges). In addition, in disputes concerning cross-border financial services the citizen concerned may turn to the dispute settlement bodies in the ‘FIN-NET’ network. These are out-of-court dispute settlement bodies which help citizens who have problems with their financial services providers. Further information on possible contacts can be found on the Commission website at: (http://europa.eu.int/comm/internal_market/de/finances/consumer/intro.htm).
  The Commission would, finally, like to point out that it will be compiling a report next year on the effects of Regulation (EC) No 2560/2001, in which it will also look into the trend in national price levels for payments. |
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1.

As a general remark, the principle of the equality of charges for cross-border and corresponding national transfers, which is the subject of this question, is based on Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro (1). Given that the provisions of the Regulation are directly applicable in the Member States, there is no need for transposition by the Member States. The banks concerned are already bound by the provisions of the Regulation.

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The Regulation must also be observed in the United Kingdom for cross-border payments in euro, although pound-euro conversion costs may be charged on cross-border transfers in euro from and to the United Kingdom. In this respect, if the currency has to be converted, then a transfer from Germany to the United Kingdom will be more expensive than a national euro transfer. Under the Regulation, the bank is obliged to inform its customers of these exchange charges.

In this specific case, it is not possible to establish from the information given in the Written Question whether the provisions of the Regulation have been observed by the banks concerned. The Commission would, however, be happy to accept and investigate any further information which Ms Jeggle or the citizen concerned may provide (e.g. account statements, lists of charges). In addition, in disputes concerning cross-border financial services the citizen concerned may turn to the dispute settlement bodies in the ‘FIN-NET’ network. These are out-of-court dispute settlement bodies which help citizens who have problems with their financial services providers. Further information on possible contacts can be found on the Commission website at: (http://europa.eu.int/comm/internal_market/de/finances/consumer/intro.htm).

The Commission would, finally, like to point out that it will be compiling a report next year on the effects of Regulation (EC) No 2560/2001, in which it will also look into the trend in national price levels for payments.

| 2. | The question as to whether a handling fee of £10 for transfers can be described as ‘daylight robbery’, is a matter for the law of the country concerned and cannot be answered by the Commission. |
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2.

The question as to whether a handling fee of £10 for transfers can be described as ‘daylight robbery’, is a matter for the law of the country concerned and cannot be answered by the Commission.

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(1)  OJ L 344, 28.12.2001.

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