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Which bank is putting up credit card fees?



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Media Release by…

ALAN GRIFFIN MP Shadow Minister for Consumer Protection & Consumer Health

9 October 2003

WHICH BANK IS PUTTING UP CREDIT CARD FEES?

Despite announcing a profit of over $2 billion less than two months ago the Commonwealth Bank is slugging its credit card customers with more fee increases.

The latest increases that Commonwealth Bank customers will be slugged with include: ! Annual fees for ‘no awards’ credit cards rising from $24 to $30 - a 25% increase;

! Late payment fees also rising 25% - from $20 to $25; and ! A brand new fee of $15 to be charged for each additional cardholder.

These fee increases come on top of the already massive profits the Commonwealth Bank derives from commissions and other fees. In the last financial year the bank recorded a rise of 15% ($181m) on fees and other

commissions - this increase was primarily driven by new fee structures on retail transaction and savings accounts.

Once again, fee slugs on ordinary Australians go through the roof while the Government sits on its hands.

According to Price Waterhouse Coopers analysis, total bank fees in 2002 were $7.8 billion with household fees at $2.7 billion. The latest fee increases announced by the Commonwealth Bank suggest that the fee grab will continue to grow.

It is high time that the Treasurer heeded Labor's repeated call for the ACCC to formally monitor bank fees and charges. Without formal scrutiny the banks clearly think they can get away with anything.

For further information please contact: Alan Griffin: 0419 353 476