Joining us in this episode of the HNB Podcast is Tomislav Mišić, Director of the CNB’s Payment Operations Regulation and Development Department. He will answer some questions about the Act on Amendments to the Act on the Comparability of Fees Related to Payment Accounts, Payment Account Switching and Access to Basic Accounts, which has made a package of free banking services available in the Croatian market.
Sections:
00:56
The Act provides a basic level of free banking services to consumers whose income is, in accordance with the applicable regulations in the Republic of Croatia, required to pass through the banking system. This means that consumers will be able to use basic banking services free of charge if they request such a package from the bank.
01:42
The services for which the bank may not charge a fee to a consumer-package user are: the services of opening, operating and closing the payment account, the services of internet or mobile banking (at the choice of the bank), the services enabling funds to be placed in a payment account at a counter or an ATM, the services enabling cash withdrawals from the payment account at the counter or at the ATM of the bank that operates the payment account (at the choice of the bank), the inflow of national and cross-border payment transactions in euro, the services of regular debit card issuance and use, if that service is provided by the bank, and the services of payments transactions executed via a debit card at physical points of sale.
03:23
It means that these services are selected by banks, in other words, each bank decides whether to include only online banking services or only mobile banking services, or both, in the package of free services it offers.
04:12
The right to a package of free services is granted to any consumer who receives regular income to a payment account with a bank in Croatia in the form of salary, pension, scholarship, salary compensation during temporary incapacity for work, unemployment benefit and compensation received by consumers belonging to a vulnerable group, as well as any other regular consumer income that is paid to a payment account with a bank in accordance with the regulations governing employment relations, pension insurance and income tax and other applicable regulations in the Republic of Croatia or is as such determined by the bank’s internal bylaws.
06:01
Consumers should apply to use a package of free services that is linked to the payment account to which they receive regular income, and the bank may request proof of such regular income.
08:36
The queries have been mostly related to the possibility that a credit institution may choose an online banking service instead of mobile banking, to mobile banking charges and to the cost-effectiveness of free service packages in relation to existing packages that are subject to charges.
10:00
If consumers already hold a payment account to which they receive their regular income, they can apply to use a package of free services linked to that payment account, and the bank is obliged to enable them to continue to use the same payment account number.
10:57
The bank may, before a consumer opens a payment account, provide him with a fee information document containing information on the free payment services included in the package, as well as on the charges for separately charged payment services.
11:44
If a consumer meets the conditions under the law governing consumer credit, the bank will, upon request, allow him to contract an overdraft on an account containing a package of free services.
12:08
Depending on the content of existing packages and consumer habits, it may not be financially profitable for some consumers to switch to a package of free services.
14:00
Yes. If a consumer fails to receive regular income to the payment account comprising a package of free service in the period of three successive months, the bank may start charging the consumer fees for the services within a package of free services for which the consumer did not pay any fees.