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Banks, Parties should back Greens bill on exit fees

Media Release
Bob Brown 8 Nov 2010

Australian Greens Leader Senator Bob Brown has called on Australian banks to back Greens legislation to ban unfair mortgage exit fees.

The Greens bill, introduced to the Senate by Senator Brown in April, would cap bank mortgage exit fees at the actual and reasonable cost to the lender, and ensure that banks included plain English explanation of any exit fees in their advertising. 

"If the big four are fair dinkum about getting rid of unfair exit fees, they will publicly support my legislation to enshrine the reform in law," said Senator Brown.

Senator Brown also called on the major parties and Independents to back the bill.

"Now that both major parties recognise the rip-off that banks have been running, they should back the legislation that is already before the Senate," said Senator Brown. 

"Any crack down on exit fees should be enshrined in legislation, not left to regulators."

Senator Brown's bill also includes a ban on $2 bank ATM fees, compulsory fee free bank accounts and measures to establish 'fair price' mortgage products that fix the gap between lenders' cost of funds and rate increases for customers.

Greens MP Adam Bandt will introduce a similar bill to the House of Representatives next week. 

 

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