Greens policies target bank fees

After the federal election the Greens have the balance of power in the senate and one MP in the House of Representatives. The Greens have a handful of prescriptive policies on banking. All banks will have to offer a basic bank account if Greens policy becomes government policy. A basic bank account will offer unlimited Eftpos, a debit card, ATM access, no ongoing service fees, real time warning of penalty fees and elimination of penalty fees where the cost to banks arises from the actions of third parties.

The Greens also wants ATM fees capped at actual costs incurred, which would cut the fee paid for using another bank’s ATM from $1.50 or $2 to less than $1. Banks will have to make much more secure credit decisions if Green policy on home loan pricing becomes Labor policy, and legislated by parliament.

The Greens call for a permanent profit margin on home loans, with the cost paid by the borrower reflecting the lender’s cost of funds and this fixed margin. Lenders will also have to cap exit fees on home loans at actual and reasonable costs. Banks will also be able to, and will need to, vary interest rates more often should Green policy on banking become common practice.

Source: Banking Day

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