BANK FEES ARE AVOIDABLE AND ARE DISCLOSED

Sydney, 23 August 2005:  The Australian Bankers’ Association (ABA) rejects the claim by the Australian Consumers’ Association (ACA) that banks are charging potentially illegal bank fees.

The ABA was responding to a media release by the ACA which said banks charge ‘….potentially illegal bank fees.’

David Bell, Chief Executive of the ABA, said this is an unsubstantiated assertion.  Furthermore, banks disclose their fees to customers in a variety of ways including published fee tables and through information services.  These disclosures are mandated by legislation and must be provided before a customer takes up the banking service.

“The ACA agrees that customers are able to avoid these fees” said Mr Bell.

“In addition, the ABA and banks have been providing information on how customers can avoid paying fees¹.  This information assists customers to monitor their account balances and their payments.  There are many ways of checking the state of your account – ATM balance enquiries, telephone banking, the Internet, asking at your branch and bank statements,” he said.

“Customers need to remain aware of the state of their accounts and to whom they have given authority to debit their account whether through the issuing of cheques or signing direct debit authorities.”

The ACA media release relates to a “Choice Money&Rights” magazine article which uses a December 2004 report from the Consumer Law Centre of Victoria as its source for much of the story’s claims.

Mr Bell said: “Banks’ costings are commercially in confidence.  No other commercial operation is required to disclose commercially and competitively sensitive costings such as these.  Banks report fee income in disaggregated amounts in their annual reporting and they report profits. They must disclose their fees to customers before customers take up a banking service.” 

“Banks have taken steps to deal with the community’s concerns about banking including the provision of basic, low fee or limited fee free accounts for eligible customers, usually holders of Commonwealth Government health care cards that include low income earners. There are over eighty such accounts in what is a competitive market for these accounts.”

“These accounts in general provide these benefits at below cost,” Mr Bell said.

For further information:

Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS


¹ The ABA provides some useful information on how to choose a bank account which suits your needs and to minimise fees.  Please see the booklet “Smarter Banking Make the Most of Your Money” on the ABA website www.bankers.asn.au