Business

FTC cannot prevent financial institutions from amending fees

The Fair Trading Commission (FTC) says it does not have the authority to restrict any financial institution or business from amending its fee structure.

Furthermore, the Commission said it does not set or authorise prices unless the matter falls under the portfolio of utility regulation.

In a statement, the FTC said that generally, its role is to ensure that the terms and conditions given to consumers by enterprises do not contain unfair contractual clauses.

“The amount that is charged for a good or service is not considered when seeking to determine whether a clause is unfair,” the Commission said, noting that while it cannot address such matters, it does address instances where a business seeks to make an amendment, to fees or otherwise.

“Where a business fails to give customers adequate notice of amendments, this may be a breach of the Consumer Protection Act. The Commission, therefore, advises institutions that they must give timely and personal notification to consumers of impending changes via a medium which consumers readily and frequently access,” the FTC said, without indicating what would have prompted the statement in the first place.

But in recent times there have been complaints about increases in bank fees here.

CMC

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