Credit card holders rejoiced as National Australia Bank implemented changes to their contract terms and conditions and urged lawmakers to reform applicable laws protecting customers and the banks offering the greatest value to them.

NAB was the pioneer amongst banks to dismantle banking fees and credit card fees, such as the ones the Federal government has proposed amending. During the past year the bank has made a number of changes pertaining to credit cards, savings, and transaction accounts, matched by none of its major competitors.

Making these changes prior to federal regulation reform has given the bank a competitive advantage and provides favourable coverage for the company.

Thus far NAB has eliminated the $25 fee to over-limit transactions that occur on their branded credit cards as well as the $30 overdraft fee associated with personal and transaction accounts.

NAB has also dissolved the $5 and $4 monthly service fee charged to e-Banking and Classic personal accounts. The bank also made another major step by curtailing the fees on late credit card payments to $5 from $30.

NAB representatives expressed a shared commitment to offering banking customers greater value and increased competition. As stated by company representatives, NAB is a strong advocate of responsible lending.

The Federal government has announced that banks should abolish the fees charged to card holders when they go over their credit card limits.

Such changes made by the bank are expected to ripple throughout the industry, as the recent slow economy has left consumers in an uproar regarding their personal debt and the fees associated with it. Similar changes have also been made at banks in the United States and Europe.

As banks rid themselves of fees, the question becomes where they will recoup that income. Some analysts believe banks may charge higher interest rates on loan products to increase net interest margins, consequently increasing revenues.

Source: http://www.nab.com.au/w