Customers challenge banks on break fees

Consumer compensation law firm Financial Redress has launched the first service in Australia to help consumers challenge excessive exit fees on the early repayment of mortgage loans.

Customers seeking compensation for excessive fees charged by banks have "inundated" the law firm with their claims, says managing director James Middleweek.

Middleweek says his new firm is receiving hundreds of claims a month relating mainly to penalty charges on savings and credit card transactions and exit fees on loans.

The legal service is the first of its kind in Australia, although similar services are provided in the United Kingdom.

Middleweek says, "Since launching Financial Redress in March, we have simply been inundated with bank and credit card penalty charge claims.

"However, for every 100 enquiries we receive, at least ten relate to concerns over break fees on loans," he says. "The figures involved can run into tens of thousands of dollars a time.

"These excessive break fees have left our clients feeling very aggrieved."

Middleweek says, "Whether its poor disclosure, lack of transparency, mis-selling, or simple profiteering, will depend on the facts of each case. Either way, consumers feel that once again they are being massively short changed by financial institutions.

"We believe many clients could be due substantial compensation," he says.

Financial Redress, based in Perth, has developed online registration, a break fee questionnaire and other processes to keep legal costs to a minimum.

The firm says it provides quick but detailed advice to its clients as to whether they have a reasonable chance of compensation.

Financial Redress now provides detailed break fee advice for a fixed fee of $200 plus GST. Clients register online at www.financialredress.com.au or by telephone on 1300 4 REDRESS.

Visit us at: www.financialredress.com.au

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