What is this all about?
We are all too familiar with the fees that bank charge if we exceed our credit limit or make a late payment. They often cost us between $20 and $60 every time it happens.
These fees that the banks charge are called an “Exception Fee”. Last year banks declared to the RBA they received $1.2 billion dollars as a result of charging exceptions fees times this by 6 years that potentially is $7.2 billion dollars. WOW!
Financial Redress are launching an assault against banks to recover these costs because they believe the bank can only charge what is a reasonable charge of the actual cost the bank incurred as a result of customers exceeding their limits or paying late. Banks also have technology that can stop this from happening but they do not use it too often.
When they go to court they will seek to recover your fees in full from the last 6 years with accrued interest. A typical consumer claim may be between $1000 and $2000 and a business claim between $3000 and $6000.
Is there a cost?
· It is FREE to join.
· If unsuccessful in court it will cost you nothing.
· If successful, IMF will be entitled to recover its costs and 25% of the compensation received which will come from your refund.
How many claims can I lodge?
· As many as you like even if your accounts are now closed as long as you have been charged an exception fee.
What’s the process?
1. Register you details on the Financial Redress Website www.financialredress.com.au
2. An email will be sent to you with the PDS, Case Overview and FAQ’s
3. Step 2 is the register your accounts
a. NOTE you do not need to disclose your account numbers. All they need is the bank, type of account and the name on the account – nothing more
4. Submit your claim
5. You will receive another email with the “Funders Agreement” and “Solicitor’s Retainer”. You have to sign these agreements to actually be part of the class action. If you agree you will receive a final email notifying you that you are formally part of the class action and it is then over to the solicitors.
The best form of defence is for anyone against future fees is simply PAY ON TIME and DO NOT EXCEED your LIMITS. Budget properly so this just doesn’t happen at all. If you pay on time the banks can’t charge you and early payment fee!
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