By Matthew Cowley
SAO PAULO, Brazil--Brazil's Justice Ministry on Thursday said it
wants six of Brazil's largest banks to provide information about
the fees and services they're charging retail customers.
The ministry said in a statement there are indications that
banks aren't providing all the information about the packages of
services that they provide to their customers, and that "essential
and free services are inserted" into packages requiring fees, which
makes it difficult for consumers to choose.
It's the latest crackdown by the Brazilian government on the
banking sector. Earlier this year President Dilma Rousseff and her
administration demanded that banks lower their fees and interest
rates to spur lending and economic growth; the government used its
power at government-owned banks to strong-arm private-sector rivals
to follow.
In the statement, the Justice Ministry said its consumer
department has notified the two main government-run banks, Banco do
Brasil SA (BBAS3.BR, BDORY) and Caixa Economica Federal, as well as
the four largest private-sector banks, Itau Unibanco SA (ITUB,
ITUB4.BR), Banco Bradesco SA (BBD, BBDC4.BR), Banco Santander
(Brasil) SA (SANB11.BR, SANB4.BR, BSBR) and the local unit of HSBC
Holdings PLC (HBC, 0005.HK, HSBA.LN).
The banks have 10 days to provide a response, after which
"appropriate measures" would be taken, the statement said.
In separate statements, Bradesco and Santander both said they
would respond to the government's request. Banco do Brasil, Itau
and Caixa weren't immediately able to comment. HSBC couldn't be
reached for comment.
The government has taken other steps to bolster consumer
protection in Brazil this year. In late July, telecommunications
regulator Anatel imposed a ban on mobile-phone sales by three
operators because of poor quality of service and a high level of
complaints.
Write to Matthew Cowley at matthew.cowley@dowjones.com
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