Family First gets
Senate to agree to hold an
inquiry
Family First has had a
victory with the Senate agreeing
to an inquiry into its legislation
to stop banks charging customers
exorbitant penalty fees.
Family First's Australian
Securities and Investments
Commission (Fair Bank and
Credit Card Fees) Amendment
Bill 2007 has been referred
to the Senate Economics Committee
for report by 17 September.
"Families are being ripped
off by profit-grabbing banks
which can charge penalty fees
way above bank costs,"
Family First leader Steve
Fielding said today.
"Just look at these statistics.
No one can tell me we are
not being ripped off:
Over
the last five years late
payment fees on credit
cards have risen more
than 50 per cent from
$20 to $31 and fees for
exceeding credit card
limits have skyrocketed
by 500 per cent from $6
to $30;
some
banks seize up to 16 times
the cost of processing
dishonoured cheques and
92 times the cost of processing
dishonoured direct debit
transactions, according
to the Consumer Action
Law Centre;
Westpac's
bank account penalties
have increased by 25–33
per cent and its credit
card penalties by 16–40
per cent over the last
two years;
St
George credit card penalties
increased by 40–50 per
cent in the last two years."
"Low
income families are hardest
hit by penalty fees of up
to $50 for every dishonoured
periodic payment, direct debit
or cheque. But most
families find it hard to find
$50 to pay for a minor mistake."
"Family First's Bill
will stop outrageous bank
penalty fees by:
Ensuring
penalty fees are for cost
recovery only. All fees
and charges must be reasonable
and reflect a fair estimate
of bank costs;
Boosting
the powers of the Australian
Securities and Investments
Commission (ASIC) to monitor
fees. ASIC will also have
the power to investigate
customer complaints and
issues referred by the
Treasurer;
Giving
customers the right to
sue banks for damages
if they breach the Act.
"The UK Government
has put limits on bank
penalty fees, so why can't
we?"
From
Family First Senator Steve
Fielding's Office