Earlier this year consumer advocates got wind that that Bank West was charging a $15 fee for cancelling a direct debit payment. So we looked around and couldn’t find a single other bank or mutual that was charging the same fee.
The ability to cancel a direct debit direct debit quickly and simply is crucial for low income Australians – it can help them avoid overdrawing their account and facing extra fees, and it allows them to stop payments if they need to direct the money towards more important costs like rent, food or medicine.
We believe Bank West’s $15 cancellation fee is unfair, unnecessary, and potentially unlawful.
Consumer Action, Financial Counselling Australia and Financial Rights Legal Centre wrote to Ian Narev, Managing Director of the Commonwealth Bank (which owns Bank West), outlining why this fee is wrong, and we’re pleased that the bank has agreed to scrap the fee. This is a great result for Bank West customers, particularly those on a low income.