Icelandic Bank to Start Charging Low Earners

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Icelandic Bank to Start Charging Low Earners

By Alëx Elliott
MP Bank

Photo: MP Banki

MP Bank has taken the unusual step of offering to help its customers find other banks if they choose to take their business elsewhere.

MP Bank has decided to start charging its lowest earning customers ISK 5,000 a month (EUR 30/USD 44) to operate their accounts, in what the company heralds as a change of emphasis.

In a letter sent to customers, the bank says that those with less than ISK 2 million (EUR 12,885/USD 17,465) in credit, savings, assets or loans with the bank will need to pay in the future.

The letter explains that MP Bank wants to emphasize its services to companies and individuals with high turnovers and a need for specialized financial services. As a result the bank has decided to charge others ISK 60,000 a year in fees, if they have less than ISK 2 million with the bank. The fee is to be paid monthly, at ISK 5,000, starting on 1st August.

The letter advises customers to get in touch if they believe they are wrongly being categorized as low turnover customers. Customers are also advised that MP Bank will assist in any way they possibly can, if any customers choose to move their accounts to other banks, RÚV reports.

MP Bank has traded as an investment bank since 2003, but branched into commercial banking in 2008 – marketing itself as an alternative to the big three nationalized banks during the financial crisis: a sort of protest bank, or bank for the people. Now the crisis is largely over and the “big three” are regaining trust, MP Bank has decided to change its emphasis again.

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