BANK FEES IN AUSTRALIA: HOW BANKS TAKE YOUR MONEY. STOP IT!
BANK FEES IN AUSTRALIA: HOW BANKS TAKE YOUR MONEY. STOP IT!
The issue
Each and every day Australian banks steal truckloads loaves, eggs, milk, vegetables, meat and all other daily necessities from the average hard-working Australians worth millions of dollars. The banks use and create nonsense, unfair and even false and fraudulent arguments to take fees from your bank account. Fees that flow into the pockets of their shareholders instead of being money to feed and nourish your family. Money that should flow to your local economy or savings. Annually, billions flow into the pockets of the banks instead. And their CEO's laugh about it, as their bonus growth with each dollar their bank, takes from you. Here is the daily truth.
AUSTRALIA IS AN ISLAND IN THE FINANCIAL WORLD
Australia: a beautiful country. But one without direct neighbours. It lacks the inhabitants' ability to compare and look over physical country borders how their neighbour lawmakers act and protect their consumers against banks. There is no competition or direct reference material available regarding foreign banks. Australian banks (and the invasive) love that situation. They are the almighty rulers. Banks are not just companies. Banks play a key role in the monetary system and that role makes them powerful. So powerful, that special laws are or should be in place to protect those, that depend on the existence of the banks and that banks are restrained in what they can and cannot do. Banks play also a political role: they give loans to governments, that put them in the position to become even more powerful and influential. They have their fingers everywhere. All of this is not a concern, as long as the laws are tough enough to protect us, the weak, the dependable and the vulnerable. And it is there where Australian lawmakers are not tough (enough). Australia is regulated over the top. The Government is everywhere, except not where they should be, where they are really needed.
Did you ever wonder why Australian banks don't have access to overseas markets like the countries of the European Union (EU)? But why ING, Rabobank, ABN-AMRO (all Dutch banks), Allianz are present in Australia? Well, Australian banks don't or cannot meet the tough regulations and laws of those countries that enable them to enter the consumer market. But the European Banks do regarding the Australian market. The European banks can no longer earn money in the EU-countries from the bank account the consumer or the small business owner holds, as consumers are highly protected. So these foreign banks penetrate those countries where they can take a piece of the pie and where legislation is not tough on banks. They are after you, to persuade you to open a bank account. The reason?: the NONSENSE and FANTASY FEES that they are allowed to charge in Australia:
Monthly account keeping fees, Overdrawing approval fees, Unpaid payment fees, Refused payment fees, ATM fees (for your bank's ATMs and even more for using another bank's ATMs), Phone banking fees, EFTPOS fees, Internet banking fees, Branch fees, Credit Card Fees.
In Europe, bank fees are (to a great extent) FORBIDDEN BY LAW; they are illegal. Banks face penalties worth billions of Euros if they do charge them. It all started when European Courts of Law ruled that banks only may charge fees to cover the REAL costs AND only if they could prove the existence of these costs. But the banks couldn't bring that proof. There were no bases to charge the fees. It was only a set up to make and grab money. When politicians start to realise that consumers were ripped off by the banks, instigated by the rulings, they slowly started to act. The legislation came in place to protect the consumers. NONSENSE and FANTASY FEES became forbidden by law. The OVERDRAWING APPROVAL FEE in Europe FORBIDDEN. The UNPAID PAYMENT FEE: FORBIDDEN. ATM WITHDRAWAL FEES for EU domiciled banks: FORBIDDEN. EFTPOS FEES: FORBIDDEN. BRANCH FEES: FORBIDDEN. Fees Australian banks still take and make millions worth each and every day from our accounts. Australian (including the European, American, Asian branches) banks take and make billions each year on fees they take from you, the hard-working Australian. It is the easiest way to make money as they can take it from the weakest and most vulnerable. No, big corporations are exempted from those fees as they have the power to negotiate their position. Do you have those means to fight against that institution?
Let's take the Commonwealth Bank as an example (I could take one of the other big four, but not NAB, as NAB declared most fees as unethical and stripped them). The CommBank charges a customer $ 10 if they overdraw their account by $10,01. In that case, your account drops to minus $ 20.01. Plus they charge the debit interest (around 17%) over that $ 20.01. Or put it this way: the bank takes from your family 5 loaves or 10 litres milk, or 48 eggs, or two steaks or maybe your necessary daily medication or your son's or daughter's school fees. If you have a business, why not, let's take $ 15 for the same. I will tell you later more about how the bank takes advantage of your (financial) habits. Does the bank not allow an overdraft? That's even more lucrative! The bank takes $ 5 for each "unpaid payment", no matter what amount is involved. If you missed a payment of an invoice of $ 2.00? No worries the CommBank takes $5. And if one is unpaid, it's almost a certainty more are not paid. Multiply by $5. So at least another 2 loaves, or 5 litres milk or 24 eggs or another steak, 3 litres of fuel you need to go to work or drive your children to school are taken from your table. Without scruples. More disgusting is the fact that a so-called courtesy message is sent. The Commonwealth Bank will send you a text message. "Avoid an overdrawing approval fee, settle your account before 12 am AEST." This message is sent around 10:30 pm (in Queensland that equals 11:30 pm AEST). When you are at sleep, the CommBank is the friendly bank and offers you 30 minutes to settle the overdraft. That is what the CommBank calls service. This is a school example of unfair trade, false courtesy and disgusting disrespectful behaviour.
After filing complaints that went to the Financial Ombudsman including the complaint that the consumer can not choose to avoid overdrawing approval fees, another so-called service was added to NetBank (the online banking of the CommBank). Now there is the ability (which wasn't available before the complaint) to switch "on" the possibility to refuse a direct debit if that transaction turns the bank account into an overdraft. But, the CommBank is creative and saw a new moneymaker: CommBank charges $ 5 for each blocked payment. They promoted that service (without telling the costs) through a radio commercial. So our complaint was turned into a hard cash money maker.
HOW BANKS FOLLOW YOUR BEHAVIOUR
What most consumers and small business owners don't know is that the banks compute your behaviour in detail and they calculate what fees are in for them based on your behaviour. An example: the small business Peter's Paints ( who lives 40 km from the first ATM that accepts cash deposits) deposits cash almost every Wednesday. On Tuesday however, money is taken from Peter's account by direct debit (let's say repayment of a loan or weekly rent). But, this payment puts the bank account (most of the time) in a minor overdraft. Based on the bank's calculations (it is mathematical prediction called an algorithm) the bank let this overdraft happen on purpose, as the algorithm tells the bank computer that $ 15 can be earned. Actually, the bank doesn't approve the overdraft, as an approval notice needs to be given upfront, isn't it? No, the so-called approval is given after the algorithm rates the situation as a mathematical "true". The bank calculates the verisimilitude that soon after the overdraft, the debit position will be settled. The risk is predicted very low and it will bring interest, too. Suppose the algorithm notices that three weeks in a row no deposit was done on Wednesday, the algorithm instructs the computer to turn the "true" into "false". The bank computer will return the money paid and does not allow the overdraft. Again the algorithm let the bank earn money: and $ 5 "unpaid payment fee" is cashed. What are the real costs for the bank? Zero. The investment in the software was earned back in the blink of an eye.
The worst of it, as a consumer you have no choice. Our financial system has put the banks first, not the people who gain the banks' wealth. Banks in Australia rule. The legislation does not protect consumers as it should. The Financial Ombudsman (FO) has NO TOOLS or authority to stop the greed as the "FO" has NO POWER to argue or judge the height and legality of the fees. The banks will plea before a court of law, that by opening a bank account the consumer agreed on the contractual terms and conditions. But is this factual true? Can a consumer say to a bank that they do not want to pay the fees? Is there any room for negotiations with "Alan behind the teller", his manager or the manager of the manager? There isn't. That is why politicians, the lawmakers, should protect the weak and vulnerable. People who are not afraid of the enormous lobby banks will launch if any of the laws aim to take a dollar from them.
This petition aims to get the lawmakers ready to change consumer laws. Actually, to force the lawmakers to bring Australian legislation in accordance with the modern European legislation that is fair and that protects against the greed of banks. Consumers are no subjects to feed the institutional (overseas) investors who own the shares of our banks. Let's do this together and let each and every Australian over 18 sign. Australians must take back the say over their own money. Yes, you have the means to fight the institution called "bank". As a collective we have power. Therefore sign. Sign for your fair financial future. Share your concerns with your friends. Lets make this petition big.
73
The issue
Each and every day Australian banks steal truckloads loaves, eggs, milk, vegetables, meat and all other daily necessities from the average hard-working Australians worth millions of dollars. The banks use and create nonsense, unfair and even false and fraudulent arguments to take fees from your bank account. Fees that flow into the pockets of their shareholders instead of being money to feed and nourish your family. Money that should flow to your local economy or savings. Annually, billions flow into the pockets of the banks instead. And their CEO's laugh about it, as their bonus growth with each dollar their bank, takes from you. Here is the daily truth.
AUSTRALIA IS AN ISLAND IN THE FINANCIAL WORLD
Australia: a beautiful country. But one without direct neighbours. It lacks the inhabitants' ability to compare and look over physical country borders how their neighbour lawmakers act and protect their consumers against banks. There is no competition or direct reference material available regarding foreign banks. Australian banks (and the invasive) love that situation. They are the almighty rulers. Banks are not just companies. Banks play a key role in the monetary system and that role makes them powerful. So powerful, that special laws are or should be in place to protect those, that depend on the existence of the banks and that banks are restrained in what they can and cannot do. Banks play also a political role: they give loans to governments, that put them in the position to become even more powerful and influential. They have their fingers everywhere. All of this is not a concern, as long as the laws are tough enough to protect us, the weak, the dependable and the vulnerable. And it is there where Australian lawmakers are not tough (enough). Australia is regulated over the top. The Government is everywhere, except not where they should be, where they are really needed.
Did you ever wonder why Australian banks don't have access to overseas markets like the countries of the European Union (EU)? But why ING, Rabobank, ABN-AMRO (all Dutch banks), Allianz are present in Australia? Well, Australian banks don't or cannot meet the tough regulations and laws of those countries that enable them to enter the consumer market. But the European Banks do regarding the Australian market. The European banks can no longer earn money in the EU-countries from the bank account the consumer or the small business owner holds, as consumers are highly protected. So these foreign banks penetrate those countries where they can take a piece of the pie and where legislation is not tough on banks. They are after you, to persuade you to open a bank account. The reason?: the NONSENSE and FANTASY FEES that they are allowed to charge in Australia:
Monthly account keeping fees, Overdrawing approval fees, Unpaid payment fees, Refused payment fees, ATM fees (for your bank's ATMs and even more for using another bank's ATMs), Phone banking fees, EFTPOS fees, Internet banking fees, Branch fees, Credit Card Fees.
In Europe, bank fees are (to a great extent) FORBIDDEN BY LAW; they are illegal. Banks face penalties worth billions of Euros if they do charge them. It all started when European Courts of Law ruled that banks only may charge fees to cover the REAL costs AND only if they could prove the existence of these costs. But the banks couldn't bring that proof. There were no bases to charge the fees. It was only a set up to make and grab money. When politicians start to realise that consumers were ripped off by the banks, instigated by the rulings, they slowly started to act. The legislation came in place to protect the consumers. NONSENSE and FANTASY FEES became forbidden by law. The OVERDRAWING APPROVAL FEE in Europe FORBIDDEN. The UNPAID PAYMENT FEE: FORBIDDEN. ATM WITHDRAWAL FEES for EU domiciled banks: FORBIDDEN. EFTPOS FEES: FORBIDDEN. BRANCH FEES: FORBIDDEN. Fees Australian banks still take and make millions worth each and every day from our accounts. Australian (including the European, American, Asian branches) banks take and make billions each year on fees they take from you, the hard-working Australian. It is the easiest way to make money as they can take it from the weakest and most vulnerable. No, big corporations are exempted from those fees as they have the power to negotiate their position. Do you have those means to fight against that institution?
Let's take the Commonwealth Bank as an example (I could take one of the other big four, but not NAB, as NAB declared most fees as unethical and stripped them). The CommBank charges a customer $ 10 if they overdraw their account by $10,01. In that case, your account drops to minus $ 20.01. Plus they charge the debit interest (around 17%) over that $ 20.01. Or put it this way: the bank takes from your family 5 loaves or 10 litres milk, or 48 eggs, or two steaks or maybe your necessary daily medication or your son's or daughter's school fees. If you have a business, why not, let's take $ 15 for the same. I will tell you later more about how the bank takes advantage of your (financial) habits. Does the bank not allow an overdraft? That's even more lucrative! The bank takes $ 5 for each "unpaid payment", no matter what amount is involved. If you missed a payment of an invoice of $ 2.00? No worries the CommBank takes $5. And if one is unpaid, it's almost a certainty more are not paid. Multiply by $5. So at least another 2 loaves, or 5 litres milk or 24 eggs or another steak, 3 litres of fuel you need to go to work or drive your children to school are taken from your table. Without scruples. More disgusting is the fact that a so-called courtesy message is sent. The Commonwealth Bank will send you a text message. "Avoid an overdrawing approval fee, settle your account before 12 am AEST." This message is sent around 10:30 pm (in Queensland that equals 11:30 pm AEST). When you are at sleep, the CommBank is the friendly bank and offers you 30 minutes to settle the overdraft. That is what the CommBank calls service. This is a school example of unfair trade, false courtesy and disgusting disrespectful behaviour.
After filing complaints that went to the Financial Ombudsman including the complaint that the consumer can not choose to avoid overdrawing approval fees, another so-called service was added to NetBank (the online banking of the CommBank). Now there is the ability (which wasn't available before the complaint) to switch "on" the possibility to refuse a direct debit if that transaction turns the bank account into an overdraft. But, the CommBank is creative and saw a new moneymaker: CommBank charges $ 5 for each blocked payment. They promoted that service (without telling the costs) through a radio commercial. So our complaint was turned into a hard cash money maker.
HOW BANKS FOLLOW YOUR BEHAVIOUR
What most consumers and small business owners don't know is that the banks compute your behaviour in detail and they calculate what fees are in for them based on your behaviour. An example: the small business Peter's Paints ( who lives 40 km from the first ATM that accepts cash deposits) deposits cash almost every Wednesday. On Tuesday however, money is taken from Peter's account by direct debit (let's say repayment of a loan or weekly rent). But, this payment puts the bank account (most of the time) in a minor overdraft. Based on the bank's calculations (it is mathematical prediction called an algorithm) the bank let this overdraft happen on purpose, as the algorithm tells the bank computer that $ 15 can be earned. Actually, the bank doesn't approve the overdraft, as an approval notice needs to be given upfront, isn't it? No, the so-called approval is given after the algorithm rates the situation as a mathematical "true". The bank calculates the verisimilitude that soon after the overdraft, the debit position will be settled. The risk is predicted very low and it will bring interest, too. Suppose the algorithm notices that three weeks in a row no deposit was done on Wednesday, the algorithm instructs the computer to turn the "true" into "false". The bank computer will return the money paid and does not allow the overdraft. Again the algorithm let the bank earn money: and $ 5 "unpaid payment fee" is cashed. What are the real costs for the bank? Zero. The investment in the software was earned back in the blink of an eye.
The worst of it, as a consumer you have no choice. Our financial system has put the banks first, not the people who gain the banks' wealth. Banks in Australia rule. The legislation does not protect consumers as it should. The Financial Ombudsman (FO) has NO TOOLS or authority to stop the greed as the "FO" has NO POWER to argue or judge the height and legality of the fees. The banks will plea before a court of law, that by opening a bank account the consumer agreed on the contractual terms and conditions. But is this factual true? Can a consumer say to a bank that they do not want to pay the fees? Is there any room for negotiations with "Alan behind the teller", his manager or the manager of the manager? There isn't. That is why politicians, the lawmakers, should protect the weak and vulnerable. People who are not afraid of the enormous lobby banks will launch if any of the laws aim to take a dollar from them.
This petition aims to get the lawmakers ready to change consumer laws. Actually, to force the lawmakers to bring Australian legislation in accordance with the modern European legislation that is fair and that protects against the greed of banks. Consumers are no subjects to feed the institutional (overseas) investors who own the shares of our banks. Let's do this together and let each and every Australian over 18 sign. Australians must take back the say over their own money. Yes, you have the means to fight the institution called "bank". As a collective we have power. Therefore sign. Sign for your fair financial future. Share your concerns with your friends. Lets make this petition big.
73
The Decision Makers
Petition created on 28 January 2020