Hidden fees for all to see

AUSTRALIANS are paying banks almost $1.2 billion a year in penalties for overdrawing their accounts or falling behind on their credit card and loan repayments.

The big banks gouged almost $1 billion in extra fees from customers in 2007, totalling $11.6 billion.

The figures reveal that households and businesses paid $1.16 billion in exception fees in 2008, with households making up the bulk of the number.

Households paid $415 million in exception fees on credit cards, mostly for late repayments, and $490 million for breaching the terms of deposit accounts. Customers paid $38 million in exception fees on home loans.

There are no comparable figures for previous years, but figures released by the Reserve Bank reveal that all fees on credit cards climbed 11 per cent last year. Overall, households paid an extra $362 million in fees in 2008, taking the total to $4.85 billion.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

Just days after the sudden and unexpected death of Metricon founder...

How tech rebooted economics and platforms broke the invisible hand

How tech rebooted economics and platforms broke the invisible hand

Growing evidence and new research explain the evolution of economic...