The Howard Government has finally followed Labor’s lead in calls for consumers to resist online bank fees, and have acknowledged that internet bank fees are bad news for consumers.
Online banking fees are likely to be far higher than the actual cost of the transaction. The fees therefore reflect pure profiteering on the part of the banks rather than recouping the cost of the service.
Labor voiced concern over increases in net banking fees on 5 May in response to Commonwealth Bank’s recent internet banking fee hikes and encouraged consumers to switch from banks charging unfair fees for services free in the past.
Labor’s objection to the fees came from the fact that banks have urged millions of Australian customers to utilise online services so that they can make savings in reducing branch services. To then impose a charge on customers of up to 50 cents per online transaction is unfair and unlikely to reflect the actual cost of a transaction.
Major banks are already making soaring profits, yet banking is becoming more and more expensive for the consumer. Overall, bank fees collected from households increased from $1.2 billion in 1997 to $3 billion by 2003 and that figure continues to rise.
Contact: Taryn Langdon 0417 148 059 or 02 6277 3334
