Banks make 'huge profits on unfair fees'

Monday 24 May 2010

Article by Mozo

Australia’s banks have been accused of making huge profits on controversial exception fees which are currently the focus of the country’s biggest ever class action.

Data obtained by Your Money shows that if a customer exceeds an overdraft limit by $100 for one day, they can be charged a fee of $40 – an annualised profit margin of more than 14,000 per cent for a breach that may cost the banks only a few cents.

According to News Limited, more than 85,000 people have now signed up to join the class action, which has been organised and bankrolled by IMF Australia. Many more are expected to sign up before the case begins next month.

The campaign has attracted a wide cross-section of discerning bank customers, including those looking to compare credit cards and other bank products in search of the best terms and conditions.

Indeed, the Herald Sun reported last week that some bank workers have even turned against their employers by joining the class action.

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