Junking of fees, charges imposed on dormant bank accounts pushed

CEBU, Philippines – Two Cebuano representatives filed a bill in Congress that seeks to abolish the policy on the imposition fees and charges against bank accounts that have become dormant or those that show no activity after a specified period of time.

"The policy of banks on imposing fees and charges on deposit accounts considered dormant is in contravention to the fiduciary nature of the business," explains House Bill number 3358, which was proposed by first district Rep. Eduardo Gullas and fourth district Rep. Benhur Salimbangon.

In view of the bank's fiduciary nature of business, Gullas and Salimbangon believe that banks are required to observe utmost degree of diligence in handling the money of their clients and in all transactions involving them.

Both legislators explained that it is unreasonable for banks to deduct an amount from the deposit as a penalty for the lack of any transaction relating to it as they are sufficiently funded to meet the minimum balance requirement.

"After all, despite inactivity on the deposit accounts, banks are at liberty to utilize the money in their custody for the purpose of their business," the proposed bill reads.

Once approved into law, Section 2 HB 3358 stated the Bangko Sentral ng Pilipinas shall formulate and issue the manual of regulations necessary for the implementation of the measure. (FREEMAN)