NAB supports Labor policy on bank fees

National Australia Bank Ltd (NAB) has sought to distance itself from the banking
oligopoly again over exception fees, saying credit card law reforms would benefit
consumers.
NAB's personal banking boss Lisa Gray said on Sunday the lender had already made
changes to its credit card portfolio and the government's proposed changes to credit
card laws were consistent with these.
Ms Gray was responding to Prime Minister Julia Gillard's announcement that a
re-elected Labor government would ban banks from charging fees if their consumers
exceed their credit card limit.
Under existing laws, customers can be slugged up to $25 if their bill goes over a
spending threshold.
But Labor wants to change that so lenders would be prevented from drawing a credit
card account over the maximum limit without the consent of the consumer.
The government also proposes to ban unsolicited offers to extend credit limits.
NAB already had abolished its over-limit fee on credit cards and cut its late
payment fee, Ms Gray said in a statement.
But she was silent over whether NAB would abolish unsolicited credit limit extension
offers.
"While further consultation would be needed, some sensible credit card law reforms
would benefit consumers and banks offering the fairest and best value," NAB said.
NAB's position stands in contrast to its big four rivals, with the bankers' peak
lobby group on Sunday saying the government's policy was not needed since the "vast
majority" of Australians used their credit cards responsibly.
The association's chief executive, Steven Munchenberg, also said banks already
consulted consumers if they wanted to raise credit card limits.
In 2009 NAB sought to differentiate itself from its rivals by cutting exception fees
and undercutting interest rates on mortgages to improve its market share.
The big four banks, along with six other domestic lenders and two global banks are
facing a $5 billion class action over honour, dishonour, over-limit and late payment
fees charged on transaction and credit card accounts from 2004.
Law firm Maurice Blackburn and litigation funder IMF Australia Ltd are claiming the
fees were excessive, punitive charges as they were much higher than the actual cost
to the bank for a breach of contract on the accounts.
Recent research from financial comparison website RateCity found the credit card
fees charged by Bank of Queensland, Bankwest, Suncorp and HSBC were at least 26 per
cent higher in May 2010 than in May 2004.
Commonwealth Bank of Australia and Bendigo and Adelaide Bank held their average fees
steady over the six years.



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