Credit Card Bank Fees Up 8% – Banks Blame Consumers

In 2008 alone, Australians forked out in excess of $1 billion in credit card ancillary fees, from credit limit breaches, ATM transaction fees and late repayments.

Across the financial providers of Australia, bank fees rose 8% on average.

Quotes and statements from financial authority

The banks however preferred to shift the blame back to consumers? A representative stated that ‘Revenue from fees would be cut 30% if consumers simply used their credit cards wiser‘.

Treasurer Wayne Swan commented ‘It isn’t difficult to see why Australian consumers are fed up with their banks‘.

Australian Bank Association Chief David Bell said ‘To save money, simply use ATMs which belong to your own bank, make sure your accounts aren’t overdrawn and repay your credit card on time’. 

Unfortunately, this is much easier said than done for most.

Why are they getting away with it?

When it comes down to it, bank fees are there for a reason.

If there wasn’t a penalty for late repayments, nobody would willingly and consistently pay on time.

Credit limits aren’t too difficult to manage: Your credit limit should be a reflection of the maximum amount of credit you can afford to borrow. If you need more credit, banks typically won’t hesitate to accept a credit limit increase request.

However, the key issue raised is the excessive cost of fees, not their existance in the first place.

Recently, Credit Card Finder investigated just how difficult it is to dispute a credit card fee. The answer is, suprisingly quite easy if you’re willing to apply a grain of effort. See How to Dispute Credit Card Fees: And Win.

Commonwealth Bank have been known to be relatively lenient when it comes to refunding fees. Compare the CBA credit card range here for more information.

Comparison of our Top Credit Card Offers

		Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual Fee	Cash Advance Rate (p.a.)
Citibank Clear Platinum Card	A low interest rate offer on balance transfers and purchases	11.99%	2.9% for 12 months	$99	21.74%
St George Vertigo	An introductory offer on balance transfer and a low annual fee	13.24%	0.99% for 12 months	$55	21.49%
Virgin Flyer Credit Card	Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers	20.99%	1.9% for 9 months	$99	20.99%
Westpac 55 Day Credit Card	No annul fee for the first year with a low rate on balance transfers and purchases	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
ANZ Frequent Flyer	An exclusive bonus points offer, Plus extended warranty, overseas travel and medical insurance,90 day purchase security insurance.	19.74%		$95	20.99%