Exit Fees

It seems that the Government is moving startingly quickly to deal with bank switching costs.

Although the banks should act independently on the issue, the Government would soon announce a “range of tools” that would force them to cut exit fees, he said.

“Apart from the very public pressure that we are already putting out there, which I hope would have an effect, ultimately Government, APRA (Australian Prudential Regulation Authority), ASIC (Australian Securities and Investments Commission), the Reserve Bank are all involved in the regulatory process that do effect the banks,” Mr Tanner told the Nine Network today.

All great news from my perspective.

One thought on “Exit Fees”

  1. This will be war: The People vs. The Banks. The highlight: the enforced education of the masses in search of no fees, lower interest rates, no gimmicks and the search for prosperity (or should I say survival for the maxed out generation).
    This is not the answer though, this in reality is a reshuffling of the client/bank relationship which postpones the inevitable – bankruptcy. The banks have oversold debt even to those who couldn’t afford it and if “exit fees” is the gimmick that the government is relying on to even the deck of cards then we have a problem.
    There is no solution as yet to the problem at hand (the maxed out generation) and cutting exit fees will not really solve anything – the debt needs to be repaid to any institution that carries it!

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