Westpac And NAB Increase Credit Card Late Payment Fees

Post by Sharat on November 28, 2017 · Under credit cards · Comments Off on Westpac And NAB Increase Credit Card Late Payment Fees 

According to a recent review conducted by Banking Day, Australians who hold credit cards issued by Westpac or NAB may have noticed there has been a bump in late payment fees over the last year. The review found that late payment fees levied by NAB and Westpac on holders of their credit cards are now 65% higher than fees levied on most low rate and loyalty cards. Both lenders have increased their late payment fees from $9 to $15.

High Court gives banks the all clear

Banks were given permission to raise late payment fees last July when the High Court ruled that lenders were well within their rights to collect higher fees from Australians who were not making their credit card payments on time. Westpac has raised late payment fees on credit cards issued by all its subsidiaries including St George, BankSA and Bank of Melbourne, all of whom now charge $15.

CBA and ANZ both have higher than average charges

There is however some good news. The $15 late payment fee continues to be lowers than the $18 average late payment fee charged when all card issuers are taken into account. Nevertheless, it is still higher than $10 fee with is the lowest late payment fee available in the market. So far, the two other banks comprising the big four lenders have not made any changes to their late payment fees over the last year. That doesn’t mean you are better off holding a credit card issued by either CBA or ANZ because both lenders charge a $20 late payment fee.

Customer-owned lenders offer grace periods

The most positive news to come from the review is that only a small number of customer-owned institutions have increased late payment fees over the last 12 months. If you happen to be a customer of one of these lenders, then you are likely to be given some leniency. The report showed that 16 credit card issuers allow their customers one week’s grace period before levying a late payment fee.

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