WRITTEN QUESTION E-0628/99

by Daniela Raschhofer (NI) to the Commission

(12 March 1999)

Subject: Service point - bank charges on exchange transactions

Following the introduction of the Euro and increased charges for currency exchange transactions, banks in four countries are being investigated. The Commission has set up its own service point, where citizens can register complaints about excessively high charges.

Against this background:

1. What criteria were used to decide which banks would be investigated?

2. Is it true that banks are making arrangements among themselves about the charges?

3. Why are no Austrian banks being investigated?

4. If the investigation were extended to include Austrian banks, which ones would be affected?

5. Do any grounds for suspicion exist against Austrian banks?

6. Where is the service point (in one of the relevant Member States or in Brussels)?

7. How can citizens find out where to address their complaints?

8. Was the opening of this service point publicised? If so, where and when?

9. Since the service point was set up, how many complaints have been received on average per day and per week?

10. What problems and questions are raised most frequently by complainants?

11. Which countries do the complaints come from?

12. What problems relating to Austria have been brought to its attention?

Answer given by Mr Monti on behalf of the Commission

(30 April 1999)

1. and 2. The choice of banks at which the investigations were conducted was based on operational considerations, including their size and importance and the resources available. The investigations were carried out in order to ascertain whether European banks were acting in collusion to fix conversion charges. In addition, the Commission on the same day delivered written requests for information to seventeen banking federations in eight Member States, including Austria. The documents obtained under both procedures are currently being analysed for any evidence of concerted action to fix conversion charges. The Honourable Member will appreciate that it is not possible at this stage for the Commission to prejudge the outcome of its investigations.

3. to 5. The fact, however, that investigations were not conducted in Austria does not necessarily mean that Austrian banks are outside the scope of the Commission's enquiries.

As regards the other points made by the Honourable Member, first of all, it should be noted that the "hot lines" set up by the Commission are not directly related to the competitive investigation to which points 1-5 refer. In fact, the Commission decided to open two e-mail addresses and two fax lines on which citizens can bring to the Commission's attention difficulties which they experience such as cases of non-compliance with the legal framework for the euro (for example if the official conversion rate is not applied) or with the recommandation on banking charges for banknote exchanges and payment transactions in the context of conversion to the euro. In this way, the Commission hopes to gain more insight into practical problems arising. This was done with a view to working towards improvements in payment systems, independently from the competition investigation opened by the Commission. As regards the Honourable Member's specific questions, the answers are as follows.

6. The information received by the Commission on its fax and e-mail lines does not go to a particular new "service point", but to the Directorate general for internal market and financial services (DG XV) and the Directorate general for consumer policy and consumer health protection (DG XXIV) in the context of their ordinary structure and work. All the information is gathered in the same database. There are no other reception points, in particular not at national level.

7. and 8. The e-mail addresses and fax numbers were announced in press release IP 99/90 issued by the Commission on 5 February 1999.

9. During the first six weeks of operation, on average 15 e-mails and 10 faxes per week were received.

10. Provisional results indicate that about one third of complaints concern cross-border transfers (high fees are in the foreground; some messages concern long delays). High fees for cashing cheques are also the subject of many complaints. The greatest portion of the complaints however addresses problems related with the new fees for banknote exchanges. In this regard, many messages show disappointment that these fees have not disappeared or clearly decreased, while some consider that they even have risen. The Commission will publish more complete figures in April 1999.

11. and 12. Most messages were received from Belgium, Germany, France, Italy, the Netherlands and Austria. As regards Austria, neither the number nor the type of complaints deviate noticeably from those received from the other Member States.