CIBC FirstCaribbean serves notice of cuts; other stringent changes
While no mention has been made of the word retrenchment, the Barbados-based FirstCaribbean International Bank (FCIB), which is a subsidiary of the Canadian Imperial Bank of Commerce (CIBC), has informed customers of its intention to further consolidate its back office services which support its lending, account and client information processing.
“As a result, customer information from all countries in which we operate may be processed outside of your home country in our consolidated centres or by third party processors,” the Bank said in a letter to one of its customers, dated November 3.
“We are also outsourcing computer operations and some administrative and service functions to our parent company CIBC,” added in the Bank in the two-page letter, signed by Mark St Hill, managing director of Retail, Wealth, Business & International Banking.
At the same time, FirstCaribbean has announced that major adjustments are coming to its customer agreement next month.
Local customers of the bank, which operates in 17 Caribbean territories, have been given until December 31st to agree to the stringent changes, which will give FirstCaribbean unilateral control over all applicable interest rates, fees, charges and overdraft limits in the future.
FirstCaribbean can also choose to notify customers publicly or privately of any hike in rates.
The changes, which are subject to regulatory approval, are due to take effect in January.
Customers must contact the Bank by yearend if they do not consent to the adjustments. However, this could lead to immediate termination of their banking services by FirstCaribbean, which, as a result of the new provisions contained in Schedule 1, is free to share and process information on customer accounts outside of Barbados in its consolidated centres or with its third party processors.
“The Bank will not be liable to [the customer] by reason of any act, delay or omission of such CIBC FirstCaribbean Group member or any third party service provider in the performance of the services required of it,” the Schedule states.
In the letter announcing the changes, St Hill said FirstCaribbean was aiming to serve its customers better.