Australian banks netted more than $1 billion in fees from customers paying late, exceeding limits and using non-bank ATMs, according to a report released by the Reserve Bank of Australia this month.
The figure is up by 8 percent from last year.
The report has led to allegations of major-bank profiteering by Family First senator Steve Fielding, who labelled the fee revenue as a "rip-off" which "smacks of sheer corporate greed and [is] all the more outrageous given the enormous financial assistance doled out by taxpayers to support them during the global economic crisis".
But the banks argue 30 per cent of their fee profit was comprised of 'avoidable' fees and the total amount could be significantly lower if bank customers used their own ATMs, paid their accounts on time and avoided overdrawing their accounts.
The Australian Bankers Association also suggested customers move to cheaper, no-frills accounts and credit cards.
But Senator Fielding argues that excessive fees for minor mistakes was "profiteering from unsophisticated customers".
You can avoid fees on your credit card by ensuring you don't exceed your credit limit, always pay at least the minimum payment shown on your balance by the due date and avoid cash advances.
More information on fees is available in our
Fee Guide.
