Westpac Follows NAB lead And Cuts Exception Fees

Post by NeilMc on August 4, 2009 · Under banking, credit cards · Comment

Australian retail banking major Westpac Banking Corporation has announced that it will cuts exception fees across all its product lines including credit cards and personal and business accounts. The fee will be slashed to $9 from the current $45.

The measure follows closely on the heels of rival National Australia Bank’s (NAB) decision last week to end its $30 fee, levied on customers who are overdrawn, a move which drew positive comments from both consumer groups and politicians.

Westpac, and its subsidiary St George said that its “across the board” reductions in exception fees would become effective from October 1st and would be applicable to both personal and business customers.

“This includes account overdrawn fees, outward dishonour fees and credit card missed payment and over the limit fees,” Westpac retail and business banking group executive Peter Hanlon said.

Westpac’s exception fees are currently $40 and St George’s fees are between $38 and $45.

The Sydney based lender said that the reduction in fees “across all products” would benefit its 5 million business and personal banking customers.

“Westpac has been working on reducing these fees for some time, and believes all our customers will benefit from this initiative. It is appropriate that we continue to apply a fee for the service as there is a cost every time the bank honours a transaction on an overdrawn account or processes a bounced cheque. It also ensures we don’t encourage customers to overdraw their accounts and pay additional interest rate charges.” Mr Hanlon said.

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