01.Bank fees take a dive
New research from the Reserve Bank of Australia shows that bank fees paid by households fell by 7 per cent from 2010 to 2011.
Most of the savings to households came from decreasing transaction account fees and mortgage exit fees.
The ban on mortgage exit fees from 1 July 2011 saw home loan fees fall by 11 per cent. This ban was a key win in CHOICE’s Better Banking Campaign.
“These figures show that consumer power delivers real results, with household fees on transaction accounts halving since 2008,” says CHOICE head of campaigns Matt Levey.
CHOICE also launched its Fair go on fees campaign with the Consumer Action Law Centre in 2007 to fight against bank fees.
Still work to do
However pressure still needs to be maintained in order to secure more savings for consumers, especially in regard to credit card fees.
“It’s great to see a decline, but put in perspective, bank fee income has reduced from $4.3 billion to $4 billion, still a massive expense for households to access what are in many respects essential financial services,” Mr Levey says.
“One of our biggest concerns remains credit cards, where there has been a slight increase in fee income.”
Consumers are encouraged to use our Compare, Ditch & Switch comparison tool to compare banking products, including no-frills credit cards.
Consumers can also become campaign supporters to help CHOICE fight unfair banking fees.
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