Sydney, 28 November, 2007: The Australian Bankers’ Association (ABA) has published a new fact sheet on exception fees providing even more detailed information to bank customers.

This new fact sheet is one part of the steps that the banking industry has taken to ensure strong disclosure and enhanced competition around these fees. Exception fees on consumer savings and credit card accounts include those that may be applied to dishonoured cheques, late credit card payments, overdrawn accounts and exceeded credit limits.

David Bell, Chief Executive of the ABA, said: “Since the ABA announced its initiative in May 2007 to provide more information, most banks have updated the information available and provided tips on how to avoid these fees. They have also either reduced or abolished some exception fees.”

“For markets to work well, consumers need to be well informed when making decisions, including selection of products and the way they operate their accounts. The ABA supports competitive fee offerings by individual member banks and we believe that market-based outcomes best benefit bank customers.”

Beginning in 2006 and continuing in 2007, Australian banks’ exception fees have been undergoing a sea-change. The emerging trend is toward a decline in such fees. For instance:

• In 2006, NAB relaunched its market leading Concession Card Account with no exception fees and in November 2007 also launched a new everyday transaction account called Clear Banking, which is available to all customers and also has no exception fees. For other accounts where these apply, from early 2008, NAB will lower its outward dishonour fee from $50 to $30 and eliminate the current $12 credit card inward dishonour fee. Since November 2007, customers with a NAB Concession Card account are no longer charged over limit fees on their credit card.
  
  
• In August 2006, ANZ simplified its exception fee structure, and reduced to $10 from $35 exception fees on transaction accounts for low-income earners.  From December 2007, this concessional fee will also apply to ANZ credit card customers who hold an ANZ Access Basic account.
  
  
• From June 2007, Commonwealth Bank no longer charges inward dishonour fees on any account, and charges no honour fee on Pensioner Security accounts.
  
  
• Effective February 2008, Westpac will reduce outward dishonour fees on Choice accounts from $50 to $35. This follows initiatives in August 2007 when Westpac reduced exception fees to $10 from a maximum of $25 on Basic accounts and selected accounts for Student and Youth customers.
  
  
• Since May 2007, St George and BankSA have cut inward dishonour fees from $10.50 to $0 for all personal deposit accounts, and capped honour and outward dishonour fees at $8 on Concession accounts.
  
  
• Since May 2007, Bank of Queensland has removed inward dishonour fees from transaction accounts.
  
  
• In June 2007, Citibank abolished the $15 inward dishonour exception fee across all its deposit and mortgage products.
  
  
• From November 2007, eligible Adelaide Bank customers using the Concession Xpress account will have no inward dishonour fees and a cap of $10 on honour fees and outward dishonour Fees.

• on transaction accounts;
• on accounts designed for eligible low-income and concession card holders; and
• credit cards.

Mr Bell said it is important that consumers consider other account features, not simply exception fees, when making a decision to choose a banking product or service.