A concerned bank customer has urged people to be on their guard after learning that new charges are to be introduced for telephone balance inquiries.

The Bank of Bermuda customer became worried when he was told that he would be charged $2 when he called up to check on his balance earlier this week. The man, who did not wish to be named, said he had called to see if money had been transferred from one account to another, and was told that he would be charged $2 for the service.

He said: "The lady on the phone said it had just come into effect on March 3. I want to know why the public doesn't know about it. In their small print they (Bank of Bermuda) say it can charge and change fees whenever they want."

The man said that he regularly called for his account balance because his tenants paid their rent by direct debit.

"I need to know on a regular basis that their rent has arrived, but I don't think that it is fair that I will have to pay $2 each time I need to check," he added. But Bank of Bermuda spokeswoman Anna Lowry said the $2 charge did not come into effect until April 1. She said the customer had not been charged the extra fee, but had simply been warned that it was coming into effect.

"It is only charged when customers call up for their account balance only," said Ms Lowry. "But if a client has called up for other transactions, and then asks for their balance, they will not be charged the fee."

Ms Lowry also said that customers calling into one of the bank branches in person would not be charged the fee. It is purely for non-automated telephone inquiries. When asked when the public was going to be informed, Ms Lowry said: "We have been informing customers as they telephone in. Customers can call the same number, but, instead of speaking to a representative, they can use the automated system, which is free."