More on over-draft fees

Over-draft fees are big business everywhere. In Australia, the fees account for over $1 billion in revenue. This is all, however, about to change. Banks in Australia are eliminating over-draft fees, after a proposed law limiting the charge to a “reasonable fee.” Similar to the US, Australian banks had been charging $30-35, for a service estimated to cost $1 or less. In light of the proposed new law, it seems most banks are simply dropping the fee, rather than risk lawsuits. While I am sure the banks will find another way to earn money, perhaps a charge to every customer for monthly maintenance, eliminating a large fee generally paid by lowest income customers is still a good result.

Comments

[Managed Services]

This is fantastic news for all business man.Anyway thanks for sharing such information with us.keep blogging.