Phil Naylor has reiterated his stance that the ban on exit fees is detrimental to competition between lenders, in the wake of ASIC’s report earlier this week.
The report looked at how the ban was tracking with lenders, concluding that most were compliant and customer complaints were low.
However, Naylor claims the bigger issue is how smaller lenders are losing market share as a result of the ban.
“We resisted [the ban], and although unsuccessful in our opposition, our predictions have eventuated, in that the smaller lenders are losing market share to the larger lenders,” he told Australian Broker Online.
It’s a standpoint Naylor made public earlier this year, after submitting his views to a senate enquiry.
"The ban on exit fees has brought about no improvement in industry competition and has merely reinforced the dominance of the major banks and depleted the force of the smaller and non-bank lenders,” he said at the time.
“Clearly the solution to the lack of competition does not rest in banning exit fees."
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