Big banks: Stop ripping off your customers with unfair practices
Big banks: Stop ripping off your customers with unfair practices
Why this petition matters
As the big banks rake in billions in penalties from hardworking Australian homeowners in 2021 doing it tough and many people are struggling financially after recent lockdowns - we are calling on them to:
- stop penalising loyal borrowers with unfair penalty practices on their home loans
- deliver more transparent pricing.
Nearly 12 months on since the release of the Australian Competition and Consumer Commission’s (ACCC) Home Loan Price Inquiry final report, a lot of borrowers are still feeling trapped and powerless.
The final report released in December 2020 found a “lack of easily accessible, transparent and straightforward pricing information, resulting in high search costs; and unclear, uncertain, costly and lengthy discharge processes that in turn cause borrowers to give up looking for alternative products.”
The ACCC also found “borrowers can save thousands of dollars in the first year alone by switching lenders or products or asking for a better deal, with older loans around 58 basis points higher than the average rate for new loans. This could translate to a saving of over $34,000 over the life of a $500,000 loan.”
Unfortunately, nearly a year later many existing customers are no clearer on home loan pricing. Many people are continuing to pay thousands of dollars more than what is being offered to new customers and feel powerless.
In addition, there’s also a significant difference between what is advertised for new home loans and what consumers actually pay. And the banks continue to make it too difficult for consumers to do anything about it.
More than 6 million households have a mortgage on their property and behind every number, there’s a story. Whether it’s a teacher, nurse, first responder, small business owner, farmer, administrator or a stay-at-home mum - these people are all working hard to meet their commitments.
Every dollar counts. Looking at an average loan rate, the big banks will penalise each existing customer around $2,000 this year and Australian customers don’t deserve to be slugged billions in 2021.
This $2,000 the banks are pocketing could cover a family’s annual electricity or gas bill for a year, a trip to see their beloved family when the borders open. Now, more than ever, Aussies need this money in their wallets. Not the banks.
People are sharing stories of raiding supermarket bins, going without food and feeling mentally overwhelmed as they do everything they can to make ends meet in these uncertain times. Borrowers are being laughed at when picking up the phone in desperation to get a better deal, while others say they simply feel like the banks have them over a barrel.
It is time to act and empower them with all the information they need to make informed decisions. We want to stop unfair penalty practices and give hard-working Australians the ‘fair go’ they deserve.
Starting with a clear view of what new versus existing customers are paying - so we can make an informed decision with all the facts.
The need for clarity is more important than ever with the impacts of COVID-19 putting increasing pressure on Australian households.
Please consider signing our petition calling on lenders to stop unfair penalty practices, deliver more transparent mortgage pricing and a ‘fair go’ for Aussie households.
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