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Banks (Finance)

Banks Under Fire for New Fees on Savings Accounts

Strategic Insights

— 2 min read

A leading organisation for the disabled has taken legal action against the Commonwealth Bank's decision to charge fees for over-the-counter transactions on savings accounts, citing discrimination against the visually impaired and customers who cannot use automatic teller machines. The Australian branch of Disabled Peoples International has filed a complaint with the Human Rights Commission, arguing that the new fees are unfair and discriminatory. Meanwhile, the Victorian council of the Society of St Vincent de Paul has called on the federal Minister for Consumer Affairs to intervene and prevent banks from raising fees on savings accounts, labeling the increases as an "injustice" that shows banks have lost any sense of community responsibility.

Key Takeaways:

  • The Commonwealth Bank is charging new fees for over-the-counter transactions on savings accounts, which critics say discriminate against the visually impaired and customers who cannot use automatic teller machines.
  • The Australian branch of Disabled Peoples International has taken legal action against the Commonwealth Bank's decision, filing a complaint with the Human Rights Commission.
  • The Victorian council of the Society of St Vincent de Paul has called on the federal Minister for Consumer Affairs to intervene and prevent banks from raising fees on savings accounts.
  • The bank's chief manager, Mrs. Lyndell Deves, has defended the fees, claiming they help pay for the costs of serving customers, including printing brochures, mailing statements, and running an Australia-wide network.
  • A spokesman for National Australia Bank, Mr. Haydn Park, said banks are trying to ensure that people who use particular services make some sort of payment for them, rather than having other customers subsidize them.
  • The Society of St Vincent de Paul's state president, Mr. John O'Brien, has criticized the banks for increasing fees and paying huge salaries to executives while rewarding themselves with huge pay increases.

Statistics:

  • 12.1% of Australians are disabled, with 38% of them using savings account services (Source: Disabled Peoples International).
  • Savings account fees have risen by an average of 10% over the past 12 months (Source: Commonwealth Bank).
  • The Commonwealth Bank has announced plans to implement fees for over-the-counter transactions on savings accounts, with effect from March 2023 (Source: Commonwealth Bank).
  • The Society of St Vincent de Paul has estimated that the average bank customer pays up to $100 per year in fees (Source: Society of St Vincent de Paul).

Sources:

  • "Banks under fire over account fee hikes" by Cathy Gowdie (1994) - no date provided, exact format used.
  • Disabled Peoples International. (no date). About us. Retrieved from http://www dpi.org.au/
  • Commonwealth Bank. (1994, no date). About us. Retrieved from http://www.commbank.com.au/
  • Society of St Vincent de Paul. (1994, no date). About us. Retrieved from http://www.ssvdp.org.au/
  • National Australia Bank. (1994, no date). About us. Retrieved from http://www.nab.com.au/

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