There is a strong consensus among people from other countries who live in Belgium that much of its administration is unnecessarily onerous. In northern Europe, places like Germany, Holland and Scandinavia have many rules and regulations, but apply them quite smoothly and efficiently.
Southern Europe tends to be looser and less well organized. Both public and private institutions in Belgium seem to combine northern rigidity with southern disorganization.
To open a bank account, one is supposed to have a fixed Belgian address. Of course, to get such an address, one needs a Euro-denominated bank account to put down a deposit to rent or buy housing.
The big banks like Dexia and ING will circumvent this “Catch 22” by initially opening an account based on a foreign address and then updating to a Belgian address later. (They will still not provide a no-fee online account without a Belgian address.)
ING actually advertises itself as the bank of choice for expatriates. It offers a fairly complete package for a flat 30 Euros per year and claims to provide English-language service.
For me, the decisive factor was that ING is my employer’s bank, so I would get paid faster. Rather than having to change a bunch of Canadian dollars into Euros, I was able to immediately use my first Euro salary deposit to rent my apartment. But ING, and from what I hear other banks in Belgium, have several odd defects.
1.) Restricted Temporary Cards
When I opened my ING account, I got a temporary bank card and a brochure about how my bank card would function throughout the Euro-zone. I then went to Amsterdam only to discover that my temporary card did not work. Fortunately, I had just enough cash to get through the weekend.
When I returned, ING explained that its permanent cards work elsewhere, but its temporary cards only work in Belgium. But they never mention this restriction when issuing them. I have heard the same story from others.
2.) Little Ability to Look Up Account Information
Not long after that, I noticed an unexplained 4-Euro fee on my bank statement. Since my annual fee is supposedly comprehensive, I wanted to make sure that this charge was not supplementary.
I asked at my bank branch whether the fee was just a prorated portion of my annual fee. I got bounced around to a couple of different desks, having to wait in line at each one.
The tellers said that it was “intérêt débiteur.” I knew that was wrong, so they promised to look into it and phone me. After a week without hearing back, I returned and was again told that it was “intérêt débiteur.”
I then demanded to speak to a manager. After more waiting around, I was able to do so and he confirmed that it was indeed a prorated portion of my annual fee.
3.) ATMs Without Cash
A fairly common occurrence, especially but not exclusively over the weekend, is bank machines running out of money. It is not just one out-of-service ATM beside three functional ones. All of the machines at a given bank branch will be out of cash. Belgians to whom I speak on the street in front of these barren branches regard it as a routine mishap, but I try to explain that it simply does not happen in other countries.
4.) Life Insurance Scams
In January, I noticed a 5-Euro charge for “life insurance” on my bank statement. When I phoned ING, the explanation did not make it sound like a real insurance policy. It was more like a convenience fee to ensure that my family would have rapid access to the money already in my account if I died.
I was also told that my account could not be changed over the phone, so I would have to go into my branch to cancel the insurance. After waiting in line there, the teller indicated that she could cancel it for future years but not alter the current year. I argued until this year’s fee was refunded.
An Irish colleague tells me that ING refunded the same life insurance premium twice and did not take back the second refund even after he brought it to ING’s attention. I am still waiting to benefit from Belgium’s incompetent banking.
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