Fees under Investigation
(26 March 2008 – Australia) The senate in Australia has agreed to an inquiry into legislation to stop banks charging customers high penalty fees.
The legislation, brought forward by Family First Senator Steve Fielding, will be reported back on by the 16th of September 2008.
Family First's Australian Securities and Investments Commission (Fair Bank and Credit Card Fees) Amendment Bill 2008 has been referred to the Senate Economics Committee.
Family First's bill is to regulate bank penalty fees on accounts and credit cards by setting a number of standards, including ensuring penalty fees are for cost recovery only.
The Bill will also boost the powers of the Australian Securities and Investments Commission to monitor fees, investigate complaints and to demand information to ensure fees reflect costs.
It will stop inward cheque dishonour fees and charging multiple fees for the same mistake and stop penalty fees charged because another bank charge has pushed the customer over or under the necessary bank balance.
Finally, it intends to prevent penalty fees for customers exceeding their credit card limit where the bank does not give customers the option of a solid maximum credit limit.
Family First's Bill covers banks, building societies, credit unions and other institutions that offer credit cards.
Family First's Australian Securities and Investments Commission (Fair Bank and Credit Card Fees) Amendment Bill 2008 has been referred to the Senate Economics Committee.
Family First's bill is to regulate bank penalty fees on accounts and credit cards by setting a number of standards, including ensuring penalty fees are for cost recovery only.
The Bill will also boost the powers of the Australian Securities and Investments Commission to monitor fees, investigate complaints and to demand information to ensure fees reflect costs.
It will stop inward cheque dishonour fees and charging multiple fees for the same mistake and stop penalty fees charged because another bank charge has pushed the customer over or under the necessary bank balance.
Finally, it intends to prevent penalty fees for customers exceeding their credit card limit where the bank does not give customers the option of a solid maximum credit limit.
Family First's Bill covers banks, building societies, credit unions and other institutions that offer credit cards.
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