What are the worst bank fees?

The cheque dishonor fees. I would like the bank to contact the customer first to let them know that there are not enough funds in the account before charging the fee. Sometimes it can just be the case that the cheque account has not been “topped” up.

2 Likes

I just don’t get it. Why do so many people remain with the major banks, knowing full well these banks will charge them fees and are in business mainly for the benefit of their shareholders?

There are so many better alternatives that offer the same if not better services, don’t charge fees, and don’t exist to make a profit. I’m talking about the mutual banks and credit unions.

I’ve been with what is now the RACQ Bank for over 30 years, and have never had a complaint against them. (They started as the Queensland Teachers’ Credit Union, then QT Credit Union, then QT Mutual Bank, before merging with RACQ.) They have always provided all the services I need - home loan at a low rate, Visa card linked to my offset account with an overdraft facility at low rates, access to funds through all ATMs, and NO charges unless I go into the red.

Just change banks, for goodnessake!

4 Likes

Never heard of RACQ bank before now - that does sound like a good deal!

2 Likes

After being stung by ANZ back in the early 70,s I took my fathers advice and opened an account with Western Credit Union as it was known then, it is now know as CUA / Credit Union Aust. I have never dealt with a big bank since and probably saved thousands over the years. Do a comparison on big bank fees compared with a credit union and you will be surprised at the savings to be made.

4 Likes

I have some non-fees feedback.

My wife and I had used a single bank account in my name since time immemorial - adding and removing functionality to that ‘account’ as needed. The account had originally been created when I was single, and I started to worry - I was told that if I died, the bank would cut off her access to the account until a bunch of legal formalities had been observed. Worse - we could not add her name to the account! Instead, we had to create a new, joint account and say farewell to all the history of our dealings with and profitability to the bank. “Because computers”.

Now for my paranoia to emerge. Those who have previously posted on this topic may wish to consider whether it is sensible for individuals to identify their banks on this forum. I cannot imagine that it would be too enormously difficult for a ‘bad actor’ to figure out your real identities, and then start spear-phishing you with emails from ‘your’ bank. Just a thought.

2 Likes

You are right about single vs joint account. Happened to my parents. When they opened their accounts they were not permitted to put more than one (the breadwinner’s) name on the account. Also happened with utilities, and airline points, and and and. When my father died, my mother battled for years trying to return accounts back to the way they were but with her name on them.

Isn’t it about time to shine a light on the banks’ bad behaviours?

I would hope that the more people that identify which and how banks misbehave, the more likely that change will come about, rather than retribution.

4 Likes

Since 2002 we have had joint and individual accounts with various banks, never a worry. Most seem to continue issuing credit cards in a single name though, so my partner has her own cards. In the legal world of liability it can make sense. If a debt has a large ‘bill’ and one does a runner, the other has full liability.

It is a two edged sword. (Been there decades ago in a previous life, it was costly!).

I never ventured into it in Australia, but in the US an account can be individual, joint name, joint name with right of survivor, or individual with transfer on death to (name). Joint names means the survivor only has automatic rights to half with the other half subject to wills and probate, with rights of survivor the survivor owns the account in full.

4 Likes

My understanding of “Joint Account” is that on the death of one, the full amount is available to the other. Certainly happened that way for my mother when my father died. She went to CentreLink to fill out the forms for a Pension and was informed that all the Joint assets were now hers and she was still ineligible for the Pension - but thankfully had money and a roof over her head, without waiting for a Will to settle.

Would be a different situation if both were still alive - first to empty the account wins!

3 Likes

My Worst Bank Fee experience was when I missed a minimum payment on my credit card (I always paid it out each month). Minimum payment was $25, I had about $26 owing, the default fee was $35 and they slugged me 21% interest - about $35.50! The bank has since acknowledged that this fee was way beyond recouping their effort. After I complained - months later - I was granted a refund of $30 ex-gratis. They no longer charge this.

5 Likes

I too was stung badly by ANZ back in the 70’s and took the advice of my dear ole Dad and joined what was then known as Western Credit Union and now have morphed over the years into CUA. I have been with them ever since and can only say I have never had a problem with them, fee’s are low and service is excellent they are really customer focused not anything like the big banks chasing profits. do yourself a favour and save heaps and check them out you won’t be disappointed.

4 Likes

No surprises here, the banks are still raking in billions in revenue from fees:

4 Likes

I rarely buy lottery or lotto tickets but remembered at the last minute about the $100M one the other night, so bought a ticket online and used PayPal to pay – a whole $16.20. Got my c/card statement tonight from St. George and it showed a $2.50 ‘cash advance fee’ plus $0.03 interest. As I never get cash with this card I rang them and they said because the PayPal was for gambling, I was charged the ‘cash advance fee’. The chap I spoke to said he didn’t know it happened when you used PayPal but it was be in the terms and conditions. This charge is just plain stupid – if I had bought the ticket at the newsagency and used my credit card, I would not have been charged the fee. I’m just pleased I’m not an avid gambler.

4 Likes

Are you sure about that?

3 Likes

Well, some years ago I was buying a magazine in the newsagents and asked for a lottery ticket as well. The girls said she couldn’t put the lottery ticket on the credit card – apparently it was illegal. Then, probably 12 months ago, when I bought the same thing I went to give cash for the ticket and was told it was ok now to include it on the credit card. No cash advance fee has ever appeared on my statements before and I would be surprised if the bank got a complete breakup of what I had purchased – ie. in order to charge me for the lottery ticket. I can’t see how the bank can justify such a charge – they are probably going to say they are trying to discourage gambling (that’s great), but they’re just pocketing more profits and I will never accept that they are concerned for our welfare in that way – just look at the recent Royal Commission.

5 Likes

From the Tatts T&C: 9.7 that is not your news agent, but…

Deposits made by credit card are subject to the following terms:
* Deposits may only be made by a credit card issued in your name. If you use a credit card issued in the name of a Third Party to deposit funds to your account we may, at our discretion, remove the credit card from your account or close your account. Subject to any rights available to you under the law, we may not refund deposits made to your account by the use of a credit card issued in the name of a third party.
* You may not withdraw funds deposited to your Accounts received via a credit card.
* Unused credit card deposits will only be transferred back (on request) to the card from which they were deposited. No other funds will be transferred back to your credit card.
* You may cancel the authority to deposit funds via a credit card at any time by notifying us in accordance with section 17.5.4 of this Part B.
* Deposits by credit card may be considered a cash advance by the issuer of your credit card and may attract interest from your issuer accordingly. You should contact your issuer for further information.
* We reserve the right to deny this service to any Member and may withdraw this service from you at any time.

The historical background is to provide a minimal net to catch problem gamblers in that one can spend all of the cash and irreversible credit one has, but cannot go into debit when there is recourse to dispute charges. This protects both the punter to a small extent and as you wrote the issuer to a greater and (questionably) profitable extent.

Assume you lost $1,000 from a credit card charge on your lotto tickets whilst on marginal income and could not pay your groceries and rent as a result.

Some punters might sue the issuer for allowing them to gamble, using the laws governing responsible lending. Thus using a credit card for gambling is treated as a cash advance when an issuer allows it, and card T&C are clear on how they treat this. Banks have become more sensitive about all lending as a result of the RC.

The laws do change from time to time.

4 Likes

Yeah, I can certainly see your point. I’m afraid I think people should be more responsible for their actions – ie. if you gamble $1,000 and lose it, that’s your own silly fault. But then, of course, as you would probably point out, there are those that spend that $1,000 and forget to buy their families groceries so it is the kids and spouse that lose out.
I think gambling is a big problem in this country and I’m surprised the government allows all the punting adds one has to endure during evening TV. They’d probably argue there are thousands of people being employed by the industry – but at what cost? There are numerous schemes allowed these days that exploit the very people who they are supposedly aimed to help – eg. pay day loans etc. The interest rates on these things are just unbelievable and should be legislated against.
When my c/card statements comes in I always pay it on time but I am forever astounded by the bit on the front page that calculated if you pay it off using only the minimum amount each month. One of mine said something like 25 years was needed with an astronomical amount of interest – I joked to my son that I’d be better off doing that as I’d be dead before it is paid off.

3 Likes

I’ve done it on wave at the newsagent and it hasn’t charged an advance fee, but I bought one ticket online about a year ago and got stung. It’s in the T&C’s but it seems ambiguous. I probably play the “tax for people bad at maths” lotto once or twice a month, just because … I buy online, but transfer the funds now every so often to avoid a further tax :wink:

2 Likes

There are two topics on this forum about Gambling Ads that you may also like to either read or contribute to as well. Choice take a keen interest in the feedback posted in this site.

2 Likes