Late payment credit card fees 'should be scrapped'
Consumers’ attempts to obtain cheap credit cards could be boosted following calls for the removal of late payment fees.
Christopher Zinn of consumer group Choice has demanded that banks take action in abolishing such fees, particularly as the amount of money they charge pales in comparison to the actual expense that not receiving a demand for payment on time.
"Just because you might be a day late paying your credit card bill, does that really mean that the bank faces a fee of $35? Of course not," he points out.
Such comments come as Mr Zinn praises the announcement by the National Australia Bank that it will scrap all overdraw fees for its saving and transaction account customers later this year.
Adding the bank now has an advantage over its competitors, he claims the removal of such fees needs to be applied to credit cards as they "as much a part of most people’s normal banking as transaction accounts".
The NAB decision comes personal banking executive claimed the fees generated the most customer complaints for the financial services provider.
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