Discounted Penalty Fees ‘Still Unfair’
Posted August 4th, 2009
Choice, the Australian consumer group has already rejected the $9 penalty fees by Westpac and St. George. According to them, the only good bank fees are no fees at all.
The announced reduction of fees by the two banks were reducing penalty rates from around $45 down to $9 and both institutions stated that they needed to keep certain fees in place to cover for their own costs.
Christopher Zinn, Choice spokesman said the two banks had yet to justify why a $9 fee was applicable. “(It’s) a step in the right direction, but the fact remains that all the banks remain secretive about the cost incurred by them when a customer overdraws their account.”
“Until the banks are transparent on this issue, we will continue to campaign for all banks to drop unfair penalty fees across all accounts.”
Following the NAB’s move to remove banking fees both banks tried to reinstate some face with Australian consumers.
“Penalty fees should only allow banks to recoup any losses incurred by the bank, but we know that in the case of credit cards, there aren’t any. Banks continue to accrue interest on any outstanding debt,” Mr.Zinn said.
He also announced that scrutiny on ANZ and the Commonwealth Bank should be increased as both have yet to respond to penalty fees and announce any changes to their rates. At present both are ‘under review.’
Source: The Australian
Related posts:
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- Survey Finds Australians Know Their Fees yet Still Pay Regular Penalty Fees
- Avoid Paying Credit Card Fees
- Cut Credit Card Interest and Fees: ATM Fees, Promotions and Low Rates
- Credit Card Fees and Business Obligations When Charging Fees
- How to Minimise Your St. George Account Fees
- Use Your Credit Card To Avoid ATM Fees
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