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Market Commissioners Support Motion to End Cross-border Bank Charges

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Market Commissioners Support Motion

The costs of conducting bank charges across the country’s borders have led to a number of problems for many businesses and customers attempting to transfer money. Many experts and regulators are looking to put an end to these charges before they get too out of control.

A new statement by Michael Barnier, Internal Market Commissioner, made an argument that may rule that these charges are in fact illegal. Or at least they could be very soon.

Barnier stated that new laws would define all electronic payments will be treated as domestic transactions. Therefore, this will make it illegal for banks to file bank charges against any of their customers.

This new law would extend new protections to consumers. The draft of this bill was approved on February 14 by an overwhelming landslide. Only 17 of the 652 voters opposed the draft of the bill.

Barnier stated that the new legislation would save consumers throughout all European Union countries a total of 123 billion euros each year.

Two drafts of the bill have been proposed. The first draft suggested that the bank debit charges would be phased out over time. However, the new bill stated that all cross-border fees would be discontinued two years from the day the draft of the bill was signed.

The Commission has stated that it wanted to enter a few exceptions to the proposal so that they could be waived under certain circumstances. However, the Members of European Parliament voted to remove this provision. Many opponents of the existing banking laws support the decision of the MEPs, as they feel that the banking authorities could use those exceptions inappropriately. Although not everyone feels the banking authorities are a problem, everyone is interested in ensuring that the banking laws will be instituted fairly and consistently throughout the European Union.

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