No benefit from anti-competitive exit fees
CHOICE calls on senators to put consumers first
CHOICE says a move in the Senate to overturn the ban on mortgage exit fees is misguided and if successful, will end up hurting consumers.
The attempt to overturn the ban, due to take effect from 1 July, has now been confirmed in a ‘disallowance’ motion due to take place any time from next Tuesday. (1)
“As we hear more evidence of the impacts mortgage exit fees are having on consumers, it is extremely disappointing that Senators would try and keep these complex and costly fees in place,” said Matt Levey, CHOICE’s Head of Campaigns.
“Freeing up consumers to move their money and create a more competitive banking sector is a crucial step, especially at a time when politicians from all sides are talking about cost-of-living pressures,” Mr Levey said.
CHOICE believes that calls to overturn the exit fee ban cloaked in benefits for consumers are misguided.
“If consumers are receiving a competitive banking deal and good customer service from any lender, large or small, they will have no reason to switch,” Mr Levey said.
“The argument that consumers will benefit by being trapped in uncompetitive arrangements is just plain wrong, and shows exactly why these types of business models need to be reformed.”
CHOICE has strongly supported the ban on mortgage exit fees as part of our Better Banking Campaign. This step is part of CHOICE’s full action plan for a more competitive and consumer-friendly banking sector .
• Matt Levey, Head of Campaigns, CHOICE: 0488 214 066
• Ingrid Just, Head of Media, CHOICE: 0430 172 669
1. See the motion here: http://www.aph.gov.au/Senate/DynamicRed/docs/Notices%20and%20postponements.pdf