August 21 2016
    Canberra Times

Bank profits and complaints skyrocket, Labor says only royal commission will do


Bank profits and the number of complaints against them have both skyrocketed in recent years, according to new research that questions the adequacy of "cop out" bodies to keep financial institutions in check.   :(

According to the analysis, conducted for the Labor Party by the Parliamentary Library, complaints about banks to the Financial Ombudsman Service have risen 60 per cent between 2008 and 2015, from 19,107 to 31,895 a year.


It also points to a 145 per cent increase in credit card complaints from 6731 a year in 2008-09 to 16,458 in 2014-15 and notes the booming profits in the industry, including the Commonwealth Bank's $9.1 billion in 2015-16, Westpac's $8.2 billion, ANZ's $7.8 billion and NAB's $5.8 billion.

Opposition Leader Bill Shorten said a tribunal to field complaints, being considered by the government, is a "soft touch" that "simply won't cut it" as the non-government organisation FOS already exists.   :(

"While the banks have been getting richer, the rip-offs and rackets have been getting worse," Mr Shorten said.


"The Coalition MPs who say they want to stop these rip-offs have a duty to stand up to [Prime Minister Malcolm] Turnbull and tell him anything less than a royal commission is just another cop out.

"There's already an ombudsman in place but the number of people getting ripped off has been going up and up".   :(

The analysis shows complaints about deposits are up 110 per cent since 2008 and up 62 per cent for insurance.

Since April, Labor has been proposing the full commonwealth inquiry into banks and the financial services industry after a string of ethical scandals, arguing it is the only way to deliver "systemic, structural and cultural change".

Criticism intensified early this month when the big four banks declined to pass on the full interest rate cut to their mortgage customers.

Nationals MP John Williams, a veteran campaigner against bank misconduct who wants a royal commission, has also embraced the idea of a tribunal and Mr Turnbull has said "the government is certainly looking at that".

"In terms of improving the way customers and particularly retail customers are dealt with, we're very open to looking at action in that regard," Mr Turnbull said.

Quote:

the big four banks declined to pass on the full interest rate cut to their mortgage customers.

Yes - my mortgage never changed at all.

I'm being ripped off by a bank.

Didnt the x merchant bankers wet lettuce leaf do the trick ?

Bobby. wrote on Aug 22^nd, 2016 at 7:24am:

Quote: the big four banks declined to pass on the full interest rate cut to their mortgage customers. Yes - my mortgage never changed at all. I'm being ripped off by a bank.

which bank?

Labor had some good polices during the election..

an investigation into the greedy banks was one...

taking negative gearing off second hand housing was another...

its a pity the rest of their polices were utter duds...

President Elect, The Mechanic wrote on Aug 22^nd, 2016 at 7:37am:

Bobby. wrote on Aug 22nd, 2016 at 7:24am: Quote: the big four banks declined to pass on the full interest rate cut to their mortgage customers. Yes - my mortgage never changed at all. I'm being ripped off by a bank. which bank?

ANZ

https://static.wixstatic.com/media/304d88_d953954b493d458ba5347cd57f2c8322~mv2.jpg/v1/fill/w_748,h_533,al_c,q_85,usm_0.66_1.00_0.01/304d88_d953954b493d458ba5347cd57f2c8322~mv2.jpg

Paper bill profits. Sam Dasty goes after them.




Labor takes aim at banks and power companies over paper bill 'rort'
Adam Gartrell AUGUST 21 2016

Banks and utility companies that are charging people for paper statements and bills they used to get for free are in Labor's sights as the practice is branded a "rort" that particularly hurts the elderly and disadvantaged.

Opposition consumer affairs spokesman Sam Dastyari says companies such as the Commonwealth Bank and utility providers such as Energy Australia and AGL need to be brought into line.

http://www.brisbanetimes.com.au/content/dam/images/g/q/b/m/i/m/image.related.articleLeadwide.620x349.gqx9lx.png/1471742571440.jpg
Labor frontbencher Sam Dastyari is going after banks and utility companies charging for paper statements they used to send out for free.

He wants the Turnbull government to include the "alarming" trend in its ongoing review of consumer law.

"The whole process is a rort," he told Fairfax Media.

"Let's not pussyfoot around this. This is a new charge placed on older Australians and people who are less computer literate. This is just another example of the digital divide where those on the wrong side are treated shabbily.

"Getting statements should be a right, not a privilege. The power should be in the hands of the consumer."

Senator Dastyari has written to Treasurer Scott Morrison and Financial Services Minister Kelly O'Dwyer urging them to look at the issue.

He says while telecommunications companies are regulated, for everyone else it's a free-for-all.

CBA is introducing a $2.50 fee for each extra statement in addition to the standard two free statements it mails to customers each year, despite record profits of more than $9.45 billion.

Energy Australia and AGL have also announced charges for their quarterly bills in recent months. Energy Australia will charge $1.69 for each quarterly paper bill and AGL will charge $1.75.

"It's beyond me, considering the fees that are already charged, how the Commonwealth Bank thinks it is appropriate to charge $2.50 for a statement," Senator Dastyari said. "They do it because they can."

National Seniors chief advocate Sarah Saunders also wants the issue included in the consumer review. She says more than 20 per cent of over 65s in Australia don't use or have access to the internet.

"We don't think people should be penalised for wanting to receive statements with vital information in paper form," she said.

Consumer group Keep Me Posted says Indigenous, low-income and disabled people are also disadvantaged by paper bill charges.

http://www.brisbanetimes.com.au/federal-politics/political-news/labor-takes-aim-at-banks-and-power-companies-over-paper-bill-rort-20160820-gqx9lx.html

Technically I suppose companies (and departments) should charge where there is an extra cost associated with - but not obviously more as that is now a revenue measure. 

Morally, should they?  Cross subsiding exists in industry - e.g. petrol fuel discounts, or Aussie Post stamps.  Perhaps those on pensions, health care cards, veterans etc can be exmpet.