Fees on transaction accounts disappear
Citi is the only one of the 12 major banks that have been sued in a class action over penalty fees, to retain the penalty fee for overdrawing a transaction account. All the other banks reduced or abolished their unauthorised overdraft fees on transaction accounts over the past 12 months.
The reducing or cutting of penalty fees was led by NAB with other institutions forced to follow the market lead. Law firm Maurice Blackburn and IMF subsidiary Financial Redress are targeting 10 domestic and two global banks for charging excessive penalty fees on transaction and credit card accounts over six years from 2004.
Source: Fairfax Trading Room