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:
Comparison of our Top Credit Card Offers
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
Bankwest Breeze MasterCard | A low interest rate on everyday purchases with a low balance transfer offer | 0% for 6 months (reverts to 10.99% ) | 4.99% for 9 months | $49 | 21.99% |   |
Citibank Clear Platinum Card | A low interest rate offer on balance transfers and purchases | 11.99% | 0% for 12 months with 3% handling fee | $99 | 21.74% | |
St.George Vertigo | An introductory offer on balance transfer and a low annual fee | 13.24% | 0.99% for 6 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 12 months | $50 (for first year thereafter $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 annual fee for the first year ($30 thereafter) | 21.49% | |
Add a Comment