Rebelling against banks can make them lift their game

Weredingo says:

07:08am | 01/03/10

Kochie, your last bit about the credit union doesn’t apply to the pack of wankers I just left. Their fees were over the top, and when they merged with another credit union with their new touchy-feely branding, their fees were just as bad.

As far as I’m concerned, credit unions are just as bad as the banks. Anyone in northern NSW, avoid the “Community Mutual” Group (aka New England Credit Union) like the plague. And if you voted for a merger with this mob, you’re an idiot.

acker says:

07:29am | 01/03/10

The percentage paid in bank fees by the lowest income earners in our society is astronomical. Those who earn more at least avoid some fees, those who earn less cop it right in the neck.

The Treasurer talks about changing home loans, perhaps banks should be forced to disclose more and in simpler terms to average punter mortgage holders like me about how to opt out and in. We did have simple warnings on cigarette packets in the finish, some of these mortgages can become dangerous to our finances as well.

A lot of the huff and puff that Treasurer was talking about in regards to changing mortgages about 12-18 months ago has just gone flying above the average punters head I think, and had little follow up from the government.

Nick says:

08:20am | 01/03/10

I totally agree with this. The banks know that they can pretty much do whatever they like and the majority of their customers will stay with them anyway because they are too lazy to change. I have moved banks twice in the last 6 months… but until everyone else is willing to do it as well nothing is going to change.

biff says:

08:40am | 01/03/10

Believe it or not. Some of the banks in Sydney’s Eastern Suburbs don’t have that nasty and dehumanizing rope to organize waiting queues.

It’s time people started requiting the banks with equal amounts of insulting behaviour.

thatmosis says:

08:55am | 01/03/10

I for one took the time to change banks and feel a lot better for it. I went to a Local bank and the service is excellent
I was with my old bank for 30 years but enough was enough and when they blatantly lied to me and were caught out, that was it. The BIG banks need a collective kick up the arse and should remeber that it was the tax payers money that was used to bail them out. They are back to their old tricks of over the top bonuses whilst the consummer is treated as a convient cash cow.

John A Neve says:

09:20am | 01/03/10

David Koch,

Has missed two crucial points; we allowed governments to sell off our banks, also federal government regulations have stifled banking competition.

I quit useing banks over thirty years ago and moved to a credit union, the one I am with has merged three times with other credit unions. But still I pay no fees, get free cheques, a low interest rate on borrowing and a competitive rate on savings. It is in fact a non profit organisation, in my view the only way to go.

Bruce says:

10:22am | 01/03/10

In the main I agree with your article. Not happy, go somewhere else. However, in regards to overdrawn accounts, I have real problem. If your account goes overdrawn once and its an accident, most banks will refund on the basis its a “once off”. BUT, there are people who serially overdraw. When you go overdrawn its not your money, its the banks money. The moment an account goes overdrawn it requires the bank to “manage” this until it is no longer overdrawn. As far as I am concerned, if you keep overdrawing your account the bank can charge you as many times as they like until you get the message.

Pete says:

10:34am | 01/03/10

I have had accounts with all banks besides CBA during my lifetime for various reasons.

St. George, ANZ and Westpac are all quite good.

Commonwealth and NAB simply suck. Anyone who’s a client of CBA after all these years deserves to get treated badly - really badly - just for their sheer laziness.

acker says:

10:55am | 01/03/10

I’m actualy in the process of setting up a bank account for a community non profit group can someone offer suggestions, we are seeking low fee bank account with a cheque book -electronic funds transfer-no key cards - will not have many transactions at this stage?

Shane says:

11:06am | 01/03/10

By using Bpay, internet banking etc means that you should be able to avoid having to go into a bank branch these days.

Besides a TAFE waiting area, or CentreLink they’re one of the most terrible places on the planet to wait for service. It’s a shame that the people running those places don’t get to experience the same ‘service’ as regular customers by spending half of their lunch break waiting in a line.

I recently switched from the NAB to another bank due to their exhorbitant monthly fees and don’t regret it. I pay a maximum of $5 a month now (it’s a business account) compared to an average monthly charge from the NAB of $20-$30 which was ridiculous. I went to them asking for a better deal and they weren’t interested, so I simply moved banks, I took out all my money and didn’t even bother asking the NAB to close it.

I figure that if it gets overdrawn, they’ll eventually close it themselves and if they want to sue me for the overdrawn fee charges, then so be it - bring it on NAB.

jed says:

12:14pm | 01/03/10

what’s this ‘bank’ you speak of?

Andrew says:

12:14pm | 01/03/10

Like wtaching TV really - if we don’t like what a morning news show is offering us - too pompous, talk down to their viewers as if we were dummies - just change channels.

Opps - already have

Don't be a victim says:

12:58pm | 01/03/10

How about you think about the staff that actually work at these banks before you go in all gung ho ready to give ‘the bank’ a piece of your mind.  Imagine them coming into your business and telling you off.  Chance are that they empathize with your situation but, they have a job to do as well.
If you’re in debt up to you eyeballs because of all the things you WANT rather that need and you are upset about it, remember that you’re the person who signed up for that personal loan, just to get the latest model 4wd… don’t take out your frustrations on the 22 year old teller who is just trying to get s foot in the door and make a career for themselves.  You agreed to whatever you signed up for, be fair and take responsiblity for yourself, if you don’t like ti change, read fine print - rebelling against banks?  Sounds like a bunch of ‘victims’ to me.

Don't be a victim says:

12:58pm | 01/03/10

How about you think about the staff that actually work at these banks before you go in all gung ho ready to give ‘the bank’ a piece of your mind.  Imagine them coming into your business and telling you off.  Chance are that they empathize with your situation but, they have a job to do as well.
If you’re in debt up to you eyeballs because of all the things you WANT rather that need and you are upset about it, remember that you’re the person who signed up for that personal loan, just to get the latest model 4wd… don’t take out your frustrations on the 22 year old teller who is just trying to get s foot in the door and make a career for themselves.  You agreed to whatever you signed up for, be fair and take responsiblity for yourself, if you don’t like ti change, read fine print - rebelling against banks?  Sounds like a bunch of ‘victims’ to me.

Paul says:

01:07pm | 01/03/10

Having worked within a number of banks over the past 20 years, I am surprised that the CBA even manages to open the doors each morning.  I have never witnessed such a bloated organisation, with so many incompetant people working within it.

AMry says:

01:47pm | 01/03/10

I changed from Suncorp to CUA about 4 year ago because of the ridiculous bank fees I was being charged and have not regretted it for a minute and would not change from CUA anytime soon. I went from Suncorp’s $45 - 50 monthly fees to CUA’s $2 - 5 monthly fees. The only problem is that there are not a lot of ATM’s readily available but I’m happy enough to pay ATM fees

Mephistopholes' dog says:

02:47pm | 01/03/10

You are absolutely right, David.

Consumers should change banks when necessary simply because a free market works best when market signals are clear and direct and when service, rather than obfuscation is rewarded. Unfortunately, as you say, it is easier for people to end a human relationship than to end a banking one.

We all consume money but of all commodities it has a special mystique about it, one that is greater than the mystique about sex,  and banks play on this. Whenever they get a chance they befuddle the consumer with all sorts of fees and charges. When the banks are promiscuous with their lending the chaste and un-chaste customers foot the losses.

Consumers have a duty to show banks that money is just another commodity, and a superbly liquid one at that, more liquid than, say, bananas.

Money consumers have to educate banks. They have to impress them that it is in their interest to provide them with service through the whole of their life-cycle and not cherry-pick them in the good times and become frosty and rejecting of them in the not-so-good times. While customers might be slow to change banks a disgruntled ex-customer bad-mouths the bank for life, and so do their children.

The banks seem to be waking up to this. The best advertisement for a bank is not some slick, self indulgent commercial - it is a smart and wise middle aged woman standing behind the enquiry counter. The type that will tell a young person lusting for a credit card that is not in their best interest to go crazy - this is a sure way to get life-long customers. If they go somewhere else to get the card they will come back when all goes bust and they resent the other place,

When people have their finances in order (debt or no debts) they are confident and able to send that ultimate market signal to the bank - getting the best terms or taking their business elsewhere. Then money really does talk!

Anna says:

02:55pm | 01/03/10

I have a couple of accounts across different banks and I move my money around depending upon fees and interest. I recently closed all of my accounts (personal and business) with ANZ because after 3 separate requests they would not send me out a PDS for a business account that was transferred into my name. They charged this ‘business’ account fees for money being deposited into the account from external parties! We were handling tickets for an event and getting people to do bank transfers, but it ended up slugging us with a multitude of fees we weren’t expecting. We were a small not-for-profit and we just couldn’t handle the fees.
They also charge a fee for their VISA debit, and when I told them I didn’t want one they insisted that my bank probably did charge me fees for my other debits and I just didn’t notice and why don’t I sign up for a credit card?
But it is all about what you use your bank for - I am with NAB and Suncorp and I don’t get charged any fees with either. I don’t get a lot of cash out and do mostly everything online.
When I want to travel overseas I can switch to a NAB gold banking account easily and get no fees for international transactions and change it back when I return and not pay the monthly fee.

Brian says:

03:31pm | 01/03/10

Nice piece.

You seem like a really good guy and you and your program “Sunrise”, albeit a breath of fresh air when looking at “Today” (the worlds worst breakfast program), should shoulder some of the political blame for the current Whitlamesque government.

I find it difficult to believe Kevin Rudd wouldn’t have consulted you in 2008 wrt the stimulus and you would have agreed with all this unnecessary spending.

I would like to hear you response to that?

formersnag says:

03:53pm | 01/03/10

Dear David, your campaigns against the big banks would have more meaning for me, if you included some more real financial journalism. Just saying that fees, charges, interest rates, top management wages, etc are all, too high is not good enough.

Why not explain about some of the problems on their, “the bank’s”, cost side? The journalists that “dare not inform the public about what’s really been happening”. We in Australia really do have a “sub prime” mortgage problem. Many banks, did lend, too much money on assets, that are, or will become, over valued.

Many young Aussies have been sucked into buying their dream home on a no deposit, stamp duty or legals, deal from property developers. Then gone out & filled it with a house full of stuff, including that big screen TV from “Hardly Normal” on 2 to 5 years interest free.

The rest of the world is now going into GFC series 2, or double dip recession. Our turn is coming there, 6 to 12 months from now. When these young couples hit trouble or get divorced and go broke, they too, will have mortgages worth more than the house, just like 20% of Americans do. This will trigger a corresponding drop in real estate values across the board.

Phebedoodle says:

08:19am | 02/03/10

I recently changed my banking from ANZ to ING Direct after more than 12 years.  My new bank offers quick, easy service, great internet access, lets me use any ATM in the country (and refunds the fees if I withdraw more than $200 at a time) and provided cards etc within a few days.  No branches, but I can make deposits at the post office if I need to.

Couldn’t be happier.

Jason says:

10:25am | 02/03/10

Kochie - it is easier to talk about switching banks than actually doing it. Generally It is just too hard, too complicated and too expensive to change all your business to a new bank or credit union. They like it like that and the government’s reforms havent made switching any easier or cheaper.

Unicorn says:

11:23am | 02/03/10

Credit Unions are the way to go.  When I lost my job some years back, the Credit Union was more than happy to reduce the repayments on my car loan significantly, helping us get through the hard months till I got another job.  They made the money back by extending the length of the loan, but In came away feeling that the Credit Union and it’s front line staff all cared about me.  You cannot buy that level of goodwill through advertising campaigns and mailouts,, you get it through good old fashioned customer service. Something the Banks have forgotten about.