Laurie Ferguson (Reid, Australian Labor Party, Shadow Minister for Multicultural Affairs, Urban Development and Consumer Affairs) Share this | Link to this | Hansard source

I rise to defend the current campaign by the consumer movement against unfair bank fees and charges, which has been principally organised by the Australian Consumers Association, known as CHOICE, and the Consumer Action Law Centre of Victoria. According to the campaign, known as ‘Fair go on fees’:

Banks, credit unions and building societies all hit you with a large penalty fee if you go over your credit limit, are one day late on your credit card bill, or don’t have enough money in your account when a direct payment is due. These fees are way too high—as much as $50.’

CHOICE and the Consumer Action Law Centre believe:

These fees are probably unlawful because they are out of all proportion with the costs incurred. They are certainly unfair and hurt families struggling to make repayments on mortgages and credit cards.

The ‘Fair go on fees’ campaign has centred on grassroots activism. To this end, thousands of letters and emails have been sent by ordinary consumers to their federal members of parliament, the Treasurer and the banks. I have personally received many hundreds of emails calling on banks to reduce their fees and charges.

I also have a good story to tell about the campaign. Whilst the Howard and now Costello regime have steadfastly ignored all calls for greater consumer protection measures, it seems the banks are beginning to respond to consumer demands. According to Messrs Costello and Howard, there is no issue—the complainants have never had it so good. Earlier this month, I was contacted by the National Australia Bank CEO, Mr Ahmed Fahour. In our conversation he informed me that the NAB was planning this: to help low-income earners by extending the current concession card account to remove over-limit fees on NAB credit cards, with the exception of penalty fees; a new zero monthly account-keeping fees option for all accounts; the use of any one of 24,000 ATMs without incurring additional non-NAB ATM fees with ‘gold banking’; and a clearing bank account with no exception of penalty fees.

In this regard the ANZ bank has also been taking the lead, by reducing the penalty fee from $35 to $10 on ANZ credit cards for low-income earners who hold an ANZ basic banking account. In the absence of government regulatory intervention, I congratulate the consumer movement for their efforts in raising this matter of enormous public importance. Likewise I also congratulate NAB and ANZ for responding to the concerns of their customers. I urge other banks to follow their lead.

On indulgence, Mr Deputy Speaker Causley, may I wish you the best in your retirement. As you mentioned in the House recently, we entered the state parliament on the same day 23 years ago. Whilst we did not agree on many issues, we were in a parliament where there was great camaraderie between both sides of parliament—people respected each other and there was a great degree of kinship. Over many years I have found you to be a fine parliamentarian, a firm person in the chair but fair. I wish you the best in your retirement.