Westpac cuts Exception Fees across credit cards, personal accounts and business accounts
3 August 2009
Westpac today announced an across the board reduction in all exception fees on its credit cards and savings and transaction accounts as the next step in its customer focused strategy. This will apply to both personal and business customers.
From 1 October 2009, Westpac will reduce all its exception fees to $9. This includes account overdrawn fees, outward dishonour fees and credit card missed payment and over the limit fees.
Group Executive, Westpac Retail and Business Banking, Peter Hanlon said the significant reduction across all products will benefit our 5 million personal and business customers.
“This is the most significant move on bank fees that the Australian banking industry has seen for a number of years. Westpac has been working on reducing these fees for some time, and believes all our customers will benefit from this initiative.
“We believe the fairest outcome for our customers is to take a comprehensive approach to our fee structure and cut exception fees across the board. All our customer segments will benefit from this initiative.
“The new structure is simple to understand and is fair value for the service provided.
“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.
Today’s announcement follows Westpac’s review of these fees over the past 18 months including changing exception fees on its Basic Bank account for pensioners and other social security recipients. Our earlier changes to the Basic Bank Account will remain in place.
“The comprehensive and significant reduction in these fees supports our commitment to have a transparent and fair fee structure in place for all our customers. We’ll continue to work with our customers to assist them in avoiding these fees altogether.
“This initiative forms part of Westpac’s broad based customer centric strategy. We’ve opened 19 new branches as part of our $90m branch investment program as well as boosting the team with an additional 500 bankers this year which includes bringing back the Bank Manager as well as reinstating local business bankers in branches this year. We are making real progress for our customers,” Mr Hanlon said.
