All wrapping no present
(13 December 2010 – Australia) Independent Senator Nick Xenophon claims the government's banking package will not do much to help the millions of Australians who already have home loans.
'For the millions of Australians who currently have a home mortgage, these bank reforms are all wrapping and no present. If exit fees are unfair on new loans, surely they must also be unfair on existing loans,' he said.
Mr Swan hit back at Mr Xenophon’s criticism saying that it was not possible to ban exit fees on existing mortgages, but people have protection against those charges being excessive or unfair.
Senator Xenophon says the Government's banking package will not make it any easier for people to switch existing home loans.
'We have had laws on unconscionability for many years on the statute books, but they've rarely been used because they are hard to interpret and hard to enforce,' Mr Xenohpon said.
The Federal Shadow Treasurer, Joe Hockey, says the government has adopted many of the coalition's ideas for banking, but said they now faced the task of ensuring the banks don’t repackage the fees elsewhere.
Mr Swan assured that ASIC will make sure the banks do not try to rebadge exit fees.
'Some big banks have already abolished their exit fees in direct response to the reforms that we already have out there but we'll legislate to ensure that they aren't reintroduced and that exit fees from other banks are banned,' Mr Swan said.
'Now if the banks try to rebadge as any other type of fee ASIC will take them to court if these fees are unconscionable.'
Mr Swan hit back at Mr Xenophon’s criticism saying that it was not possible to ban exit fees on existing mortgages, but people have protection against those charges being excessive or unfair.
Senator Xenophon says the Government's banking package will not make it any easier for people to switch existing home loans.
'We have had laws on unconscionability for many years on the statute books, but they've rarely been used because they are hard to interpret and hard to enforce,' Mr Xenohpon said.
The Federal Shadow Treasurer, Joe Hockey, says the government has adopted many of the coalition's ideas for banking, but said they now faced the task of ensuring the banks don’t repackage the fees elsewhere.
Mr Swan assured that ASIC will make sure the banks do not try to rebadge exit fees.
'Some big banks have already abolished their exit fees in direct response to the reforms that we already have out there but we'll legislate to ensure that they aren't reintroduced and that exit fees from other banks are banned,' Mr Swan said.
'Now if the banks try to rebadge as any other type of fee ASIC will take them to court if these fees are unconscionable.'
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