New watchdog powers could lead to bank fee crackdown

[JohnK]

Some positivie news on exorbitant bank fees....

New watchdog powers could lead to bank fee crackdown

EXORBITANT late fees charged by banks and phone carriers could be scrapped under sweeping new powers to be given to the consumer watchdog.

Assistant Treasurer Chris Bowen will today announce laws will be fast-tracked to protect people from "unfair" contracts which slug customers with "unreasonable costs".

Some banks charge customers as much as $35 for late credit card payments, $30 for exceeding a credit card limit, $38 for overdrawn accounts and $45 in direct debit dishonour fees.

 

[simongr]

Will this be as effective as the Petrol commissioner? Sadly I expect this will be another governmental waste of money...

 

[Nigelinoz]

If what has happened in the UK with a test case against bank fees is any guide the banks will still get their own way.
I'm afraid the old adage about about there only being two certanties in life-death and taxes probably needs to be updated to include bank fees.

 

[oz_mark]

Stevens slams banks over ATM fees

Reserve Bank Governor Glenn Stevens has said there is no strong case for banks to impose fees on people who use Automatic Teller Machines of a bank other than their own.

Historically, banks have charged people a 'foreign fee' for customers using an out-of-network ATM. An RBA-enacted change requires the machines to show how much extra transactions will cost consumers on the spot.

Starting on March 3, the RBA will ban 'interchange' fees paid between banks when customers from one network use another bank's fees. The central bank is seeking to stop banks from charging 'foreign fees' to cover the cost of electronic processing, which RBA governor Glenn Stevens said today was ''no more than 10 cents.''

Stevens slams banks over ATM fees

 

[straitman]

Re: Stevens slams banks over ATM fees

I'm sure there won't be any disagreement from anyone that I know :!:

 

[pauly7]

Re: Stevens slams banks over ATM fees

Hmmm someone put it to me today - would you rather have profitable and fee gouging banks that have a cosy quadropoly (sic) or cheap compeitive banks that fail a la UK etc......

Still this fee in particular annoys me as well... thankfully Citibank have negotiated with Westpac to maintain completely fee free ATM transactions for their Citibank Plus product, and they still charge no foreign ATM fee themselves.

 

[oz_mark]

Re: Stevens slams banks over ATM fees

Hmmm someone put it to me today - would you rather have profitable and fee gouging banks that have a cosy quadropoly (sic) or cheap compeitive banks that fail a la UK etc......

Still this fee in particular annoys me as well... thankfully Citibank have negotiated with Westpac to maintain completely fee free ATM transactions for their Citibank Plus product, and they still charge no foreign ATM fee themselves.

As have HSBC. It would be a bit on the nose for banks that have such a small network of ATM's to be charging foreign bank fees!

 

[Platy]

Re: Stevens slams banks over ATM fees

Hmmm someone put it to me today - would you rather have profitable and fee gouging banks that have a cosy quadropoly (sic) or cheap compeitive banks that fail a la UK etc.......

Please consider that banks are only supposed to impose fees to cover the real costs of transactions. They have been blatantly ripping off customers for years. If they are covering their costs, they shouldn't be going bust on the basis of transactions costs, so, IMHO the above argument is spurious.

Exactly the same is true of the airlines in terms of exorbitant credit card fees.

Strictly speaking, illegal, but very hard to challenge in court, although I do understand that cases that are brought by folk against such situations are quietly settled out of court so a precedent does not become set in law.

 

[oz_mark]

Not sure that bank exception fees are the same as airline credit card fees.

Exception fees come about because the consumer has done something wrong, in terms of their agreement with the bank - and indeed they should only be recovering costs.

An airline credit card fee is not an exception fee (called a convenience fee in some circles)

 

[russ]

What is the law that they are breaking?

 

[simongr]

That they should only recover from consumers the costs that they incur by consumers using other bank networks.

I am actually considering moving to one of the banks from a credit union as they used to charge no atm fee for any bank then moved to rediteller and CBA and now it is only free at rediteller.

It would be great to see some real public reaction to this - a day where no-one uses ATMs and only withdraws cash from the counter in banks...

 

[Nigelinoz]

From:
CHOICE - Unfair bank penalty fees
"Using publicly available data obtained from the Reserve Bank of Australia, and from the Wallis Committee’s Final Report of the Financial System Inquiry (March 1997), the Unfair Fees report estimated that Australian banks could be charging consumers cheque dishonour fees between 5 to 16 times what it costs them to process a cheque dishonour and direct debit dishonour fees between 64 to 92 times what it costs them to process a direct debit dishonour. By any stretch of the imagination, such amounts are unconscionable or extravagant.

 

[JohnK]

It would be great to see some real public reaction to this - a day where no-one uses ATMs and only withdraws cash from the counter in banks...

This I would love to see. Give the banks some of their own back....

 

[Flashback]

That they should only recover from consumers the costs that they incur by consumers using other bank networks.

I am actually considering moving to one of the banks from a credit union as they used to charge no atm fee for any bank then moved to rediteller and CBA and now it is only free at rediteller.

It would be great to see some real public reaction to this - a day where no-one uses ATMs and only withdraws cash from the counter in banks...

But then you get charged a teller assistance fee..

 

[simongr]

But then you get charged a teller assistance fee..

I just remembered that tomorrow will be the second time that I have been to my bank since opening the account (not done at the bank) 7 years ago :shock:

 

[Nigelinoz]

I just remembered that tomorrow will be the second time that I have been to my bank since opening the account (not done at the bank) 7 years ago :shock:

You'd better take plenty of ID then coz they probably won't recognise you !

 

[Flashback]

I just remembered that tomorrow will be the second time that I have been to my bank since opening the account (not done at the bank) 7 years ago :shock:

Banks are open on Saturdays over east? :shock:

 

[tuapekastar]

Banks are open on Saturdays over east? :shock:

Yep, plenty of branches open on Saturdays (in Vic at least, and presumably also NSW) .

As do large shopping centres on Sundays (do they still remain closed on Sundays in WA - have been caught out by that in the past)?

 

[Flashback]

Yep, plenty of branches open on Saturdays (in Vic at least, and presumably also NSW) .

As do large shopping centres on Sundays (do they still remain closed on Sundays in WA - have been caught out by that in the past)?

Yep, only Perth CBD (after 12 midday) and Fremantle on Sundays..... and maybe Mandurah forum, as its considered a "tourist place" (I think this is how the others are allowed to operate also).

 

[drron]

That they should only recover from consumers the costs that they incur by consumers using other bank networks.

I am actually considering moving to one of the banks from a credit union as they used to charge no atm fee for any bank then moved to rediteller and CBA and now it is only free at rediteller.

It would be great to see some real public reaction to this - a day where no-one uses ATMs and only withdraws cash from the counter in banks...

This is my everyday proceedure.