Westpac chief hits out over exit fee plans

Friday 04 March 2011

Article by Mozo

House-hunting Aussies who are looking to compare home loans online could be among those interested in the comments of one banking chief regarding exit fees.

Westpac boss laments exit fee plans

In an interview with the Weekend Australian, Gail Kelly, chief executive of Westpac, lamented the federal government's plans to ban exit fees on home loans.

According to the Westpac boss, the idea demonstrates "poor public policy".

"We think competition should be allowed to play its role. If certain players want to have this fee or not have that fee, that is competition. It is not a big matter for us at Westpac but it will have the result of making it harder for the small players," she told the news provider.

"I don't think there is any need or requirement for further legislation with regard to price matters, price signalling or collusion. All of the laws that are already in place are pretty strong and there isn't any evidence of that kind of activity happening."

The comments come as the home loan market is seeing increased competition with lenders offering discounts, waiving fess and reducing interest rates.

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