Republic Bank faces an audit after a regional regulator blasted it for belatedly withdrawing money for payments that customers made up to two years earlier.
The Eastern Caribbean Central Bank said last Thursday that more than 12,000 customers across the region were adversely impacted by the actions of the Trinidad and Tobago-headquartered bank.
“Without a doubt, it has caused hardship and anxiety for many customers,” stated the ECCB, which was set up in 1985 as the monetary authority for Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. “The customers of Republic Bank and the ECCB, as regulator, expect better from Republic Bank. This situation is downright unsatisfactory.”
The ECCB said the situation has impacted multiple countries and territories.
“We are advised that about 12,112 Republic Bank customers across five countries in the Eastern Caribbean Currency Union have been adversely impacted by this untimely situation,” the regulator stated. “The affected customers include staff at the ECCB.”
The regulator also announced plans to commission an independent audit of the situation to determine if additional actions are needed.
In the VI
Here in the Virgin Islands, many angry Republic Bank customers have recently flooded social media with complaints about the way the financial institution treated them when money was taken out of their accounts with scant warning in late April. The BVI Financial Services Commission also held talks with the bank about the situation, according to Deputy Premier Lorna Smith, who is the territory’s financial services minister.
Though the FSC has stayed silent, the ECCB stated last week that Republic Bank was found to be acting below standards.
“As we understand the situation, the affected customers received value, but the corresponding debits were not posted,” the ECCB stated. “We are informed that these transactions date as far back as 2022 when the system was converted following Republic Bank’s acquisition of the operations of Scotiabank.”
Republic Bank blamed the situation with late withdrawals on a “technical” issue.
Bank’s ‘own standards’
The ECCB stated that it does not have the power to force Republic Bank to reverse its actions, but said it has an obligation to promptly deal with customers’ concerns.
“On this occasion, Republic Bank failed to meet its own standards, the ECCB code of conduct, and customer expectations,” the regulator stated. “The ECCB has engaged Republic Bank on this issue [and] has sought and received assurances about how this highly unsatisfactory situation will be addressed.”
The regulator said Republic Bank has agreed to assist affected customers by offering payment plans if the move left them out of pocket.
Republic Bank also said it would reverse any overdraft fees resulting from the sudden move to withdraw payments up to two years old.
The FSC and Republic Bank have not responded to requests for comment.
