Exit fee ban breaks handcuffs says Gillard

Home loan customers will not face higher interest rates because of the ban on mortgage exit fees, Treasurer Wayne Swan insisted today. "We've been absolutely clear banks won't be able to re-badge an unfair exit fee as another type of fee and we've given ASIC the power to go after any bank that tries it on," Mr Swan said.

"The scrap we're now seeing between the banks confirms what we already know – that mortgage exit fees are one of the biggest barriers to Australian families walking down the road to get a better deal." Mr Swan said the ban will remove the "huge barrier to competition of unfair exit fees" and will start on July 1. Prime Minister Julia Gillard said a ban on exit fees would stop people being "handcuffed to banking products they no longer want".

Source: Herald Sun