Kiwibank drops credit card fees
(11 June 2015 – New Zealand) Kiwibank informed its customers at the start of June that it was slashing credit card fees, including its late payment fee from NZ$15 (A$13.9) to NZ$3, and its over-limit fee from NZ$20 to NZ$5 for each month the balance exceeds the credit card’s limit.
It is also making internet banking cash advances fee-free instead of charging NZ$2 and also dropped the cost of ATM cash advance fees and overseas currency conversion fees for items bought in foreign currencies.
The fee changes are effective from 11 June 2015.
A spokesperson for the state-owned bank said there were pending changes to credit laws and the bank believed now was the right time to make the fee changes.
Changes to New Zealand's consumer credit laws came into force on 6 June and include requirements for lenders to be more responsible about giving out money, give a warning on credit card statements about paying the minimum balance, publicly displaying interest rates and fees and ensuring customers are notified about fee changes which could cost them more money.
As well as the fee cuts Kiwibank is lifting its interest rates from 6 July from 19.95 percent per annum to 20.95 percent per annum for purchases and from 21.95 percent per annum to 22.95 percent per annum on cash advances for its Air New Zealand Airpoints Platinum MasterCard.
The Kiwibank spokesperson said it regularly compared its fees to rival banks and was also making the changes to remain competitive.
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