Pressure builds on CBA & ANZ to cut penalty fees

Commonwealth and ANZ Bank are expected to at least match the move by Westpac and its subsidiary St George Bank to slash penalty fees from $40 to $9.

The Westpac move applies to all account holders and follows an announcement last week by NAB to axe penalty fees completely from personal (but not business) accounts.

Westpac is expected to lose about $210 million in cash earnings from the reduction in fees, while NAB said it expects to lose about $100 million.

Both Commonwealth and ANZ have been planning to cut their fees and are now expected to at least match the Westpac move which, like the changes announced by NAB, come into effect on October 1.

New commonwealth laws that will come into effect in January 2010 will force banks to justify the actual costs of their charges if directly challenged by a customer.

Source: Sydney Morning Herald