The Age --- Page: 15 : 23 May 2007 Original article by John Kavanagh
ABIX Summary
Australian banks are quick to charge penalty fees, which have become a lucrative source of income. They charge penalty fees on late payments on credit cards, and these fees have risen sharply. The Reserve Bank of Australia has noted that Australian bank garnered $A4.03 billion in fees from consumers in 2006, a rise of 10% over the previous year. Foreign currency conversion fees have risen, and fees for spending over the limit on a credit card have also risen. The consumer group, Choice, has urged Australian banks to reduce or abolish many of these fees. Bankers have been quick to point out that banks face fierce competition on home loans, where margins have fallen.
