Consumer advocacy group GetUp! has set its sights on a new campaign aimed at recouping moneys lost by consumers.

The organisation and its 375,000 members aim to force banks to decrease penalty fees and even refund fees paid in the past. If banks fail to provide satisfaction, the organisation says members will move their funds and business elsewhere. Penalty fees are fees imposed on cardholders as a result of late payment or over limit charges.

Members of the organisation are also encouraged to support and sign up with the class action lawsuit sponsored by IMF (Australia) Ltd. Filed back in May, IMF brought the lawsuit against Australia’s biggest banks on behalf of thousands of customers, complaining of illegal and excessive penalty fees. If the suit is successful, customers could receive refunds of roughly $2, 000.

GetUp! states their primary focus is penalty fees on credit cards. However, the group plans to continue protesting other grievances in what seems likely to be an enduring series of bank reform operations.

The group argues consumers do not have enough choices within the banking industry. While GetUp! admits National Australia Bank (NAB) has already eliminated or decreased some fees on its credit cards and other financial products, the organisation would like to see such changes made on an industry-wide basis.

GetUp! will send its members information detailing how to proceed with contacting bank executives to voice and file complaints and will also encourage its members to join IMF’s $5 billion lawsuit.

Banks collected $1.2 billion in penalty fees during fiscal year 2009. According to data supplied by the Reserve Bank, penalty fees account for 10 per cent of total banking fees.

Though this campaign may seem somewhat impractical, Getup! does have some leverage. The group recently petitioned new election standards into law, extending the deadline for an additional 100,000 citizens to vote. As well, voters will now be permitted to enrol online in the future, all due to the group’s grass-roots efforts.

Source: http://www.smh.com.au/