Canada-based Royal Bank of Canada is retracting a plan to charge customers transaction fees for loans, mortgage payments and debit transactions on some kinds of accounts due to outrage from customers.
The bank was set to do the changes effective from June 1 but heavy backlash, especially on social media, forced it to reconsider the decision. The new bank fees target kids' accounts and allow 'double-dipping,' say customers. According to the bank, the new "pay-to-pay" fees would have applied to RBC Royal Bank mortgage and loan payments from RBC personal banking or savings accounts, RBC Royal Bank investment contributions from RBC banking accounts and RBC Royal Bank credit card payments from RBC savings accounts.
"We are listening to our clients and will not include transactions like mortgage and loan payments as debit transactions," the bank said in a statement. "The impact of not proceeding with these as countable debits will be modest, as most of our clients are already in accounts with unlimited transactions. We encourage our clients to call us or meet with us at their local branch and ensure they are in the right package for their needs," the statement further explained.
The change means mortgage and loan payments, investment contributions and credit card payments will not count toward a customer's monthly transaction limit and will not incur extra fees. While customers who have accounts with unlimited debit transactions would not have been affected, others would have to pay the fees to do more transactions. Even while all of Canada's big banks have announced hikes to transaction and account charges, but Royal Bank stood out for charging customers to make payments to itself.
The NDP has a petition calling for an end to so-called "pay-to-pay" fees by Canada's big banks. The federal government banned pay-to-pay fees from telecom companies.
The bank was set to do the changes effective from June 1 but heavy backlash, especially on social media, forced it to reconsider the decision. The new bank fees target kids' accounts and allow 'double-dipping,' say customers. According to the bank, the new "pay-to-pay" fees would have applied to RBC Royal Bank mortgage and loan payments from RBC personal banking or savings accounts, RBC Royal Bank investment contributions from RBC banking accounts and RBC Royal Bank credit card payments from RBC savings accounts.
"We are listening to our clients and will not include transactions like mortgage and loan payments as debit transactions," the bank said in a statement. "The impact of not proceeding with these as countable debits will be modest, as most of our clients are already in accounts with unlimited transactions. We encourage our clients to call us or meet with us at their local branch and ensure they are in the right package for their needs," the statement further explained.
The change means mortgage and loan payments, investment contributions and credit card payments will not count toward a customer's monthly transaction limit and will not incur extra fees. While customers who have accounts with unlimited debit transactions would not have been affected, others would have to pay the fees to do more transactions. Even while all of Canada's big banks have announced hikes to transaction and account charges, but Royal Bank stood out for charging customers to make payments to itself.
The NDP has a petition calling for an end to so-called "pay-to-pay" fees by Canada's big banks. The federal government banned pay-to-pay fees from telecom companies.
