Penalty fees coming down say banks

High penalty fees charged by banks for dishonoured cheques, late credit card payments, overdrawn accounts and exceeded credit limits are trending down says the Australian Bankers Association. The ABA has published a new edition of its fact sheet noting all the changes that have occurred since May 2007 when banks undertook to provide improved information on penalty fees, which the banks call exception fees. Since then banks have taken a number of significant steps in relation to exception fees says the ABA. Since then three major banks have announced accounts which are free of exception fees while some banks provide discounted exception fees to low income earners. Several banks have announced major new revisions to exception fees and abolished some fees completely. All banks have improved disclosure of their fees agreed to review exception fee terms and conditions. The detail in relation to all the accounts and reductions can be found in the new edition of the ABA exception fee fact sheet which is online at the ABA website. The fact sheet also provides comparative tables on exception fees for regular transaction accounts, for transaction accounts for eligible low-income earners and concession card holders and for credit card accounts.

Source: Australian Bankers Association