Australians encouraged to sue banks over unfair fees

Wednesday 12 May 2010

Article by Mozo

Litigation funder IMF Australia has said it will bankroll a class action against banks for what it claims are unfair exception fees.

The claims cover honour fees and dishonour fees on bank accounts as well as over-limit and late-payment fees on credit card accounts.

"Until very recently, some banks charged you up to $60 if you became overdrawn, went beyond an agreed limit, or made a late payment," said the IMF on FinancialRedress.com.au – a website set up to attract possible participants to the class action.

The IMF claimed that while the true cost of such transactions may only have been "a few dollars at most", the banks have made billions from the charges.

A class action would argue that when a bank seeks redress for a customer breaking a contract, it should only be able to recover a reasonable estimate of the cost. Those seeking more information about the class action can visit the website or call 1300 473 373.

The news may interest Aussies who wish to compare credit cards in search of the best terms and conditions. Last week, Westpac was voted the worst bank for customer satisfaction in the Daily Telegraph’s Banks versus Battlers Survey.

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