Consumers Benefit from Bank Changes

Aussie consumers continue to look for ways to save some money. Here are some information you need to keep in mind:

In early 2011, the federal government introduced a reform on home loan exit fees wherein, products taken out after July 1, 2011 are illegal. This is good news for those “new” mortgages but what about if your mortgage is much older?

According to the Australian Securities and Investments Commission, for older mortgages, the early exit penalty must take in consideration the actual loss of revenue of the bank because of the mortgagor’s early departure. The amount should be correct and reasonable.

Consumers need to know, however, that the fees on fixed-rate loans can still be substantial. So before signing on or breaking away on such loans, think twice.

Consumers who are fond of using credit cards must remember that effective July 1, the following changes to credit card regulations took place:

• No automatic increase in credit limit. The credit cardholder must request in writing of any request in credit limit.

• Banning of credit card over-limit fees on new cards.

• Repayments go to the highest-interest debt first when paying outstanding debts.

Some changes on bank accounts have also been implemented. This month, changing bank accounts is made easier.

According to a research from RAMS, consumers forgo a $5 billion annual interest each year. However, the tedious procedure in shifting all direct debits keeps the consumer unable to do anything about it.

Choose the bank that has the best-paying transaction accounts.

Consumers can also save on fees by moving to another bank. Consider AMP with an interest rate of 3.9 percent as opposed to the average interest rate according to InfoChoice of 1.93 per cent. ME Bank is at 2.75 per cent interest rate.