$204 MILLION AND COUNTING: FEE FOR NO SERVICE SCANDAL GETS WORSE

A compensation update from ASIC over the banks fee-for-no-service scandal has revealed that a further 100,000 customer accounts have been implicated in the scandal and the bill to repay ripped off customers now exceeds $200 million.

The scandal, where customers were charged a fee to receive ongoing advice but didn't receive any has now affected over 300,000 customers from AMP, ANZ, NAB, CBA and Westpac.

Since the original fee-for-no-service report was released (REP499) a further 100,000 accounts have been identified where fees were charged for services that customers never received.

This update increases the estimated compensation bill by a further 15% to a staggering total of $204 million without including interest charges.

The fact that a further 100,000 customers have been identified since the first report was released just over six months ago makes you wonder where it is all going to end.  

How many more banking customers need to be overcharged fees by their bank before Malcolm Turnbull will act and call a royal commission?

How many millions of dollars will have to be paid back to customers in compensation before Malcolm Turnbull will act and call a royal commission?

Just in this one scandal alone 300,000 customers accounts have been ripped off and need to be repaid more than $200 million by their own bank.

It’s time for Malcolm Turnbull to act in the interests of Australian banking customers and establish a royal commission.  

Only a royal commission will provide the scrutiny that's required to get to the bottom of what has gone wrong in Australia's banking and financial services system and Labor will continue to call for one.

SATURDAY, 20 MAY 2017


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