Cut salaries of senior management instead of hiking fees, Fitz Jackson tells banks

St Catherine Southern Member of Parliament Fitz Jackson is challenging financial institutions to cut the salaries of senior management to meet operational expenses instead of hiking and implementing new fees. 

Jackson, who has been in a years-long battle with banks about the practice he has repeatedly called unethical, made the charge at a press conference this morning at the Spanish Court Hotel in New Kingston.

It follows his filing of a lawsuit a week ago in the Supreme Court, challenging the legality of cheque-cashing fees imposed by Scotiabank on its customers.

The move forms part of a wider fight for greater oversight of banks, considered largely unregulated in some areas.  

Several banks have argued that the fees cover security and other operational expenses.

Still, Jackson has rubbished the claims, arguing that they do not lend their own money but that of depositors.

“The depositors' money is the source of their lending. One might ask, 'Why don't they cut the salaries of some of their employees to cover security costs like all other businesses do when they have to manage their operating costs?'” Jackson argued.

“It's a bit disingenuous to now say we have to do these things as if it's a special favour that you're granting to the depositor. You're not; you have an obligation under your licence to protect the funds,” he added.

Jackson's lawsuit against Scotiabank stemmed from a May 2019 incident in which he claimed he was compelled to pay a $385 fee before a teller at Scotiabank's Portmore branch would cash a $2,500 cheque in his name.

He is seeking, among other things, a declaration from the court that Scotiabank, through the imposition of the fee, has breached its obligation by failing to honour a negotiable instrument.

Section 73 of the Bills of Exchange Act defines a cheque as a negotiable instrument and stipulates that it must be honoured on demand without conditions, Jackson and his team have argued.

“This bill is not about whether the encashment fee is reasonable or not. It doesn't make that assumption or proceed on that premise. It's whether it is illegal or not… . This action (lawsuit) is in regard to the illegality of that action as it is with other fees,” said Jackson.

- Kimone Francis

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