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CHOICE - Fair go on fees
25/10/2007
Federal Treasurer Peter Costello has requested banks to review their penalty fees. The Treasurer confirmed that he wrote to the ABA in August and September on the issue. Mr Costello said "The fees they were charging bore no relation to the actual cost to the bank".
20 September
Since the beginning of our Fair go on Fees campaign, each of the big five banks have made improvements for customers, including a reduction in the penalties charged to customers with basic or concession accounts.
· Commonwealth Bank has announced it will remove the Overdrawn Approval Fee on its Pensioner Security transaction account from 1 November 2007 and will revise its Basic Banking Account early in 2008.
· In 2008, NAB will slash all dishonour fees from $50 to $30, offer new accounts with no penalty fees at all and remove penalty fees on credit card accounts for concession card holders.
· St George has reduced its dishonour and overdrawn fees on concession accounts to $8, since the launch of our campaign.
· Westpac's dishonour fee on basic, student and youth accounts is now $10 (reduced from $25, as a result of our campaign). The penalty remains at $50 for standard accounts. Westpac's overdrawn fee for basic, student and you accounts is also reduced $10 (previously $20 for these concession accounts).
· Credit Union Australia has reduced all dishonour fees by $5. The inward cheque dishonour fee has been reduced from $20 to $15. CUA says these changes are a first step, suggesting that more improvements are on the way.
10 September
NAB will reduce direct-debit dishonour fees from $50 to $30, commencing early in 2008. The bank’s chief executive, Ahmed Fahour, said more reforms are on the way.
28 August
ANZ announced it will reduce the penalty fee from $35 to $10 on ANZ credit cards for low-income earners who hold an ANZ Basic Banking Account. This change will take effect on 1 December 2007.
ANZ will also waive the first penalty fee a customer incurs if they contact the bank to discuss the fee.
All ANZ customers will also be given the option to avoid penalty fees by switching off the ability for their account to go over limit on electronic purchases and cash transactions.
16 August
The Senate has agreed to an inquiry legislation, introduced by Senator Steven Fielding, to stop banks charging customers exorbitant penalty fees.
Family First's Australian Securities and Investments Commission (Fair Bank and Credit Card Fees) Amendment Bill 2007 has been referred to the Senate Economics Committee for report by 17 September.
3 August
The Australian Bankers’ Association (ABA) published a fact sheet that provides consumers with information about penalty fees and how to avoid them. The fact sheet can be found at http://www.bankers.asn.au.
23 July
The ANZ's chief executive John McFarlane has publicly announced that penalty fees on bank accounts and credit cards are unsustainable. In his comments to the Australian British Chamber of Commerce McFarlane said that penalty fees are unfair, particularly for those on low incomes.
21 June
Following the launch of our campaign, Family First Senator Steve Fielding has introduced a private member's Bill into the Senate to require penalty fees to reflect costs, give ASIC more powers to review the fees and give consumers the right to sue for damages if charged excessive penalty fees.
Neither the Government nor the Opposition has released any policy response to stop the charging of unfair penalty fees.
The Australian Securities and Investments Commission (Fair Bank and Credit Card Fees) Amendment Bill 2007 can be found on the Senate website.
15 June
St George dropped its $10.50 inward cheque dishonour fee on 12 June after we highlighted it in our research. This means that consumers will no longer be charged when somebody pays them by cheque but the cheque bounces through no fault of the customer.
'Fair go on fees' is a joint campaign by Consumer Action Law Centre and CHOICE to end unfair bank penalty fees.
25/10/2007
Federal Treasurer Peter Costello has requested banks to review their penalty fees. The Treasurer confirmed that he wrote to the ABA in August and September on the issue. Mr Costello said "The fees they were charging bore no relation to the actual cost to the bank".
20 September
Since the beginning of our Fair go on Fees campaign, each of the big five banks have made improvements for customers, including a reduction in the penalties charged to customers with basic or concession accounts.
· Commonwealth Bank has announced it will remove the Overdrawn Approval Fee on its Pensioner Security transaction account from 1 November 2007 and will revise its Basic Banking Account early in 2008.
· In 2008, NAB will slash all dishonour fees from $50 to $30, offer new accounts with no penalty fees at all and remove penalty fees on credit card accounts for concession card holders.
· St George has reduced its dishonour and overdrawn fees on concession accounts to $8, since the launch of our campaign.
· Westpac's dishonour fee on basic, student and youth accounts is now $10 (reduced from $25, as a result of our campaign). The penalty remains at $50 for standard accounts. Westpac's overdrawn fee for basic, student and you accounts is also reduced $10 (previously $20 for these concession accounts).
· Credit Union Australia has reduced all dishonour fees by $5. The inward cheque dishonour fee has been reduced from $20 to $15. CUA says these changes are a first step, suggesting that more improvements are on the way.
10 September
NAB will reduce direct-debit dishonour fees from $50 to $30, commencing early in 2008. The bank’s chief executive, Ahmed Fahour, said more reforms are on the way.
28 August
ANZ announced it will reduce the penalty fee from $35 to $10 on ANZ credit cards for low-income earners who hold an ANZ Basic Banking Account. This change will take effect on 1 December 2007.
ANZ will also waive the first penalty fee a customer incurs if they contact the bank to discuss the fee.
All ANZ customers will also be given the option to avoid penalty fees by switching off the ability for their account to go over limit on electronic purchases and cash transactions.
16 August
The Senate has agreed to an inquiry legislation, introduced by Senator Steven Fielding, to stop banks charging customers exorbitant penalty fees.
Family First's Australian Securities and Investments Commission (Fair Bank and Credit Card Fees) Amendment Bill 2007 has been referred to the Senate Economics Committee for report by 17 September.
3 August
The Australian Bankers’ Association (ABA) published a fact sheet that provides consumers with information about penalty fees and how to avoid them. The fact sheet can be found at http://www.bankers.asn.au.
23 July
The ANZ's chief executive John McFarlane has publicly announced that penalty fees on bank accounts and credit cards are unsustainable. In his comments to the Australian British Chamber of Commerce McFarlane said that penalty fees are unfair, particularly for those on low incomes.
21 June
Following the launch of our campaign, Family First Senator Steve Fielding has introduced a private member's Bill into the Senate to require penalty fees to reflect costs, give ASIC more powers to review the fees and give consumers the right to sue for damages if charged excessive penalty fees.
Neither the Government nor the Opposition has released any policy response to stop the charging of unfair penalty fees.
The Australian Securities and Investments Commission (Fair Bank and Credit Card Fees) Amendment Bill 2007 can be found on the Senate website.
15 June
St George dropped its $10.50 inward cheque dishonour fee on 12 June after we highlighted it in our research. This means that consumers will no longer be charged when somebody pays them by cheque but the cheque bounces through no fault of the customer.
'Fair go on fees' is a joint campaign by Consumer Action Law Centre and CHOICE to end unfair bank penalty fees.
