Banks making billions from inflated penalty charges

Banks are gouging profit margins of “thousands of per cent” on penalty fees for exceeding credit limits or making late repayments. In the wake of a Reserve Bank report which showed banks raked in almost $1.2 billion in penalty fees last year, confidential analysis by two major banks, obtained by The Sunday Telegraph, has revealed for the first time the true cost to the banks of penalty-fee transactions. It is a fraction of the charge the customer pays, sometimes as low as just a few cents. Full Story : News.com.au….