BASSETERRE, St. Kitts, CMC—The Eastern Caribbean Central Bank (ECCB) has described as “downright unsatisfactory” a situation in which several Republic Bank (EC) Limited (Republic Bank) customers in five Eastern Caribbean countries have been “adversely impacted” by delayed e-commerce and point-of-sale transactions.
In a statement, the ECCB said it had been made aware of the situation on April 29 this year, when the bank debited customers’ accounts due to delayed e-commerce and point-of-sale transactions.
“As we understand, the affected customers received value, but the corresponding debits were not posted. We are informed that these transactions date back to 2022, when the system was converted following Republic Bank’s acquisition of Scotiabank’s operations.”
The ECCB said that an estimated 12,112 Republic Bank customers in Anguilla, Dominica, St. Kitts-Nevis, St. Lucia, St. Vincent and the Grenadines have been adversely impacted by “this untimely situation” and that the affected customers include staff at the ECCB.
“This situation is downright unsatisfactory. Without a doubt, it has caused hardship and anxiety for many customers. As regulators, Republic Bank and the ECCB customers expect better from Republic Bank.”
The ECCB said it wanted to acknowledge “the concerns of customers raised via social media and those who have directly contacted us” and that it has taken the issue very seriously, noting that it is required to pursue the public interest within the confines of the Banking Act, 2015.
“The ECCB does not have the powers under the Banking Act to require Republic Bank to reverse these late debits except where they are inaccurate or fraudulent,” it said, adding that under Section 60(7) of the Banking Act, 2015, “the ECCB has advised Republic Bank of its decision to commission an independent audit of this situation.
“Based on these findings, the ECCB will determine if any additional actions are necessary,” it added.
The ECCB said that Republic Bank, as a licensed financial institution, is obligated to promptly debit its customers’ accounts for point-of-sale and e-commerce transactions.
“On this occasion, Republic Bank failed to meet its standards, the ECCB Code of Conduct, and customer expectations. It is incumbent on Republic Bank to work assiduously with its customers to fix it.”
The ECCB said it has “engaged Republic Bank on this issue, has sought, and received assurances about how this highly unsatisfactory situation will be addressed.”
It said Republic Bank has assured that regarding this unsatisfactory situation, it will offer customers payment plans where needed and requested the reversal of any overdraft fees directly resulting from the delayed debits for the e-commerce and point-of-sale transactions posted.
In addition, no fees will be charged for standing orders to facilitate payments, no commitment fees, legal fees, or interest will be charged for customers who require credit facilities for payment of the delayed debit sums to their accounts, and customers who require bank statements to verify the accuracy of the amounts debited will be furnished with such statements without charge.
The ECCB said that the current Banking Act provides the ECCB with minimal powers for market conduct (financial consumer protection).
“For example, the Code of Best Practice for Licensed Financial Institutions provides guidelines, but they do not have the force of law.
“The ECCB recognizes the lack of consumer protection powers in the current Banking law. Consequently, the ECCB, in 2023, sought and secured the approval of the Monetary Council to change the law to provide such powers and to establish an Office of Financial Conduct and Inclusion. Work to effect this decision has commenced.”
and then  has described as "downright unsatisfactory" a situation in which several Republic){kind=link}