Compare credit cards to avoid high fees, says ABA

Australia's banks are beginning to cut back on various account fees as consumer anger grows, it has been suggested.

Anthony Keane of News Limited observed that a huge class action against unpopular exception fees has been gaining momentum in Australia in recent months, with some of the major banks cutting their fees "in an effort to improve a tarnished image".

He referred to Reserve Bank of Australia figures which showed that total bank fees for households rose three per cent last year to $5.03 billion and have climbed 11 per cent since 2007.

Mr Keane suggested that consumers should look to compare credit cards and other financial products in a bid to avoid excessive fees.

Indeed, he quoted Australian Bankers' Association chief executive Steven Munchenberg who said that rising competition has recently been forcing the banks to reduce fees.

"There is a lot of choice in the marketplace accounts with no monthly fees, free accounts for children, students and pensioners or low-cost accounts for those who make a lot of transactions," commented Mr Munchenberg.

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