ABA denies gouging

By BN | 11/06/2010 12:00:00 AM | 1 comments

It seems that as soon as Prime Minister Kevin Rudd opened his mouth to claim that banks were gouging their customers on fees, the Australian Bankers' Association had its spin doctors working on a counter claim.

Despite raking in more than $5bn in fees last year, ABA CEO Steven Münchenberg was quick to say that its members did not partake in gouging.

“There is no doubt that the fee revenue numbers look big and that’s because billions of transactions flow through the banking system each year. But we calculate that households are paying on average 13 cents a week more on fees. This could hardly be described as a gouge,” he said. “We also know that as most fees are paid by wealthier households, low income earners are paying less than the average.”

For businesses, bank service fee revenue increased by 13%, the ABA said.

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Total: 1 comment(s)

Dave on 11 Jun 2010 03:04 PM

Blah Blah...more spin than a pottery wheel.

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