Bank fee compensation case builds up $10m in funds

IMF Australia, the company funding a huge compensation claim for "unfair" bank exception fees, is currently putting together a $10 million war chest to fight the case, it has been revealed.

Over 120,000 account holders have already signed up to take part in the case which will target Australia’s biggest financial institutions, the Herald Sun reported.

The organisers of the lawsuit claim the banks have spent years unfairly punishing customers with excessive penalties for late payments, bounced cheques and overdrawn accounts – factors which may have affected the decision of Aussies looking to compare debit cards and other financial products.

According to the newspaper, Commonwealth has received the most complaints, followed by the ANZ, Westpac, NAB, Citibank and the St George.

However, law firm Maurice Blackburn and Financial Redress – the companies overseeing the legal action – have claimed there are still millions more household and business customers who had been hit with fees that should seize the chance to register.

Earlier this week, it was revealed that Australian consumers were charged $5 billion in bank fees last year as charges for switching home loans from fixed to variable rates went up.

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