Government organizations were yesterday inundated with a flood of phone calls from members of the public condemning plans to limit money transfers from automatic teller machines (ATMs) to NT$10,000. Consumer advocates also urged the government to put the plans on hold.
Arguing that the reduced limit will cause great inconvenience to the public, the non-profit Consumers' Foundation yesterday called on the government to apply the brakes on this decision, which, the foundation says, is in violation of Article 30 of the Consumer Protection Law (
The article stipulates that the government should consult consumer advocacy groups, experts and professionals about issuing legislation or administrative measures meant to protect consumers, foundation chairman Jason Lee (
Although this regulation does not carry fines or punishments for infringements, the Control Yuan can impeach policymakers for implementing this decision, said Christopher Kuo (
In a bid to curb rampant fraud, the Ministry of the Interior announced on Tuesday that the maximum amount that can be transferred from an ATM machine without prior notice to the account holder's bank will be slashed from NT$100,000 to NT$10,000 per bank card per day.
Without first consulting banking institutions and financial experts, the ministry proposed that the rule take effect next Wednesday for a one-month test period before making a final adjustment based on the public's response.
The policy is expected to result in a surge in the number of clients having to stand in line at the bank to facilitate money transfers, which requires a handling fee of NT$30 per transaction from account holders and NT$100 from others. Conducting the same transaction at an ATM costs only NT$17.
To avoid paying the extra fees, some people might resort to conducting transfers through virtual banks on the Internet, which carries higher risks, Lee said.
According to the government-funded Financial Information Service Co (
While most banks said that it would be easy to alter the software on ATMs to comply with the new rule, they appeared lukewarm about the lack of consultation in policymaking.
Wang Wen-lung (王文龍) of the International Commercial Bank of China (中國商銀) said the rule would mean that growing numbers of credit-card payments will have to be made via bank counters, rather than at ATMs, thereby increasing banks' personnel and operation costs and wasting consumers' time and money.
Describing the policy as "unbelievable," Wang said that there are better ways to prevent ATM fraud, such as locating and freezing "nominal" accounts or stipulating that money transferred through ATMs can only be withdrawn after two hours.
Swindlers commonly use kidnappings or fake traffic accidents to deceive victims into transferring money into strangers' accounts, and a two-hour freeze on withdrawals would give the authorities enough time to expose such scams, Wang said.
The strong public backlash was felt yesterday at the Bankers' Association of the Republic of China (
Eight phone lines at the Bankers' Association were swamped with calls yesterday, said Elton Li (
According to Li, one angry caller said that if the government is incapable of hunting down criminals making use of ATM money transfers, "Why not just dismantle all ATMs to avoid frauds once and for all?"
Shia Ben-chang (
Although stemming ATM fraud is a pressing issue, Shia suggested taking gradual steps to lower the ceiling on transfers, instead of cutting the limit to one-tenth at once.
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