Banks

[Burgo]

Very much in the news lately.

I have an opinion of the banking fraternity as many of my friends are past bankers or have stacks of shares in Banks.

We recently experienced the GREED of bank in the US and it appears the Australian banking sector has not taken any heed to what GREED does to the economy of the nation.

Our Government is really quite weak in acting on behalf of the millions of bank customers who have been ripped off by these GREEDY banks.

What can we do about them.
Without customers a business will dry up and die.
So unless you have a watertight mortgage consider change.

Credit unions and financial institutions like ING may be able to help.

When I bought my first house interest rate were at 9% they eventually went to 18% on a 25 year loan so I extended the loan to 30 years. Gradually interest rate settled back down, but during the recession we had to have just paying off the interest was a challenge.
I almost lost my business, my home and could have upset the marriage. So start shopping around to find where you can get the best deals. Be careful not all good deals are good deals.
look at the exit costs and entry costs. Look at fixed and variable or a combination of both, but before you take the plunge do your research, it may be the best bit of time you can spend.

The banks are making all these huge profits......Kevvie wanted to put a super tax on Mining, but it appears the government is in bed with the banks.

Think seriously about this because its YOUR money.

[JakeThomas]

Good points Burgo - I read recently that Wayne Swan had officially "warned" the big banks around 30 times... Obviously that plan of action doesn't seem to working.

At the end of the day, they are running a business and it's their perogative to charge whatever they want.

However, I do believe it's necessary for the Government to legislate against things like exit and penalty fees and assist in making the between bank transition not only cheaper, but easier too.

- Jake

[Chris Bates]

When a CEO has a salary of $16mil p.a. and the bank itself has profit exceeding $2bn, I think it goes beyond "they're just running a business". They're just being greedy.

Considering the majority of Australian families have a mortgage (else be homeless or rent), I think the Big4 have a responsibility to society to be fair in how they play the game. Doubling the RBA rise isn't fair, nor is it justified. The CBA deserve the backlash they're getting.

I'm all for the Gov stepping into this arena and doing something about it. Whether it's penalising for unwarranted "above the RBA" rises, or whether it's abolishing entry/exit fees.

Personally, I'm for the former - even if I had no entry/exit fees to worry about I still couldn't move, nobody would loan to me now without at least 2 years of financials for the business. So either way, I'm stuck at the whim of CityBank until I a) fold on my mortgage, b) stay in business for another year and earn enough to give myself a $50k+ pa salary, c) quit the business and go work full time for 6 months.

[Burgo]

I have had a large overdraft conponent with St George bank for many years.
When I was in business it was there for any unforseen emergencies, and yes it was put to good use on several occassions.

With all the publicity the banks are having and a discussion with a close friend I thought because I hadnt used this facility for a number of years and it also incurred a monthly fee I should find out just how much it would cost me to close it.

It took the bank ages and the answer came back $ 250.00 each property, and because you have three that will be $ 750.00 plus administration charge.
Since when have I had three properties with St George, I only have one.

Another long delay, if you want to close this account you will have to go to a branch and sort it out with them.
$ 11 million could have been spent more wisely on customer service than the CEO.

[bridiej]

The problem is it costs a fortune to close down a mortgage and go with someone else - money quite simply we do not have at the moment. Unless the government does something about exit fees then most people are stuck in the same situation.