The Wire

The federal government is set to crack down fees charged when mortgage holders attempt to switch banks. Amidst anger at large bank profits, and jibes from the opposition over Wayne Swan’s lack of action, the government will this week announce new rules to be enforced by the Australian Securities and Investments Comission. Meanwhile credit unions and mutuals are pleased about the scrapping of the exit fees, and they’ve embarked on an advertising blitz. Their message is that if you’re sick of the bank’s greed, you should switch to an institution that is owned by its members. Many economists also agree with the new rules; they say that the exit fees lock in mortgage customers, preventing them from shopping around to find the best deal.