Bank fees rise
The Reserve Bank Australia’s (RBA) annual report which has just been released shows bank fees broke the $4 billion barrier for the first time last year.
The average penalty fee for late payment on a credit card rose from $29 to $31, fees paid by households over the past five years have grown by 12% per annum on average, while fee income from business customers has increased at half that rate.
The fee issue is downplayed by the RBA, which notes that the fee rise as a proportion of total assets (ie bank business) is down . It credits most of the fee gains to people using more bank products.
The RBA takes credit for keeping down fee rises for businesses thanks to its intervention on interchange charges but it does not take responsibility for penalty fees on individuals.
The Australian Bankers’ Association has responded by saying banks will make a greater effort to inform customers about the fees they face.
The UK Office of Fair Trade has decided that bank penalty fees are legally unenforceable, but so far no banking, consumer or government body has taken action to test the situation in Australia.
