Jammed by your bank? You can join the class action suit!

Oz customer shaken by sheer extent of bank exception fees ©

You probably already know that the banks raked in an amazing almost $1 billion in exception fees last year.  And you may have also noticed your bank reducing these fees since then(ours has).  And now we know why (apart, that is, from their well-known generosity and customer service spiritedness):  a class action against twelve Australian banks is gaining momentum with the owners of more than 183,500 bank accounts challenging the banks’ long held practice of charging excessive exception fees. 

(Exception fees are charged in relation to late payments on credit cards, dishonoured cheques, going over credit limits, overdrawn accounts and late loan payments.  The fees used to range between $25 and $60 on each transaction.)

The banks who are proposed to be defendants in the class actions are ANZ, Bank of Qld, Bank of SA, BankWest, Bendigo Bank, CitiBank, Commonwealth Bank, HSBC, National Australia Bank, St George, Suncorp and Westpac.  Leading the case is firm Maurice Blackburn, who will allege that charging such exception fees is illegal because these fees penalise the customer for breaching a term of the contract (eg. going overdrawn or paying late) when by law, parties to a contract can only recover their actual costs of a breach.   Because the amounts charged are so inflated, the allegation is that they are illegal and customers are entitled to a refund. 

This is a class action lawsuit, so participants typically don't pay any upfront costs as the case is usually conducted on a 'no win, no charge' basis.  For this case, the company funding the action (and the legal team at Maurice Blackburn) is Financial Redress.  They also manage the registrations and they've reported a steady signup rate of 250 account holders each day.  So it would appear public opinion is very loud about the long held practice of the banks charging exorbitant exception fees. 

It is estimated the banks have deducted some $7 billion in exception fees. Care to join the suit and try to get some of your money back?  You can register online at www.financialredress.com.au, telephone 1300 473 373 or email for more information at info@financialredress.com.au.  The first statement of claim is expected to be filed in about a month and account holders can still sign up. 

What has been your experience with exception fees?  Do you feel jammed by your bank?  Tell us here in the comments – or review your bank and spread the word to others about which to choose (or avoid).