Unions, Choice lead revolt on banks

19 Feb 2012, 5:22 pm   -   Source: AAP
Choice has launched a campaign to help Australians find alternatives to the four big banks. (AAP)

Choice has launched a campaign to help Australians find alternatives to the four big banks. (AAP)

The ACTU and consumer watchdog Choice have launched separate campaigns to urge mortgagees to switch lenders.

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The war against the big banks is intensifying with unions and the consumer watchdog launching separate campaigns to urge the public to switch lenders.

In the face of interest rate rises, job cuts and ballooning profits, the ACTU will run a national workplace campaign to encourage members to consider their options for changing banks under new federal laws.

At the same time, the consumer watchdog Choice is urging mortgagees to dump the big four banks and look elsewhere for a better deal.

It has accused the major banks of keeping consumers in the dark by not giving prospective home buyers adequate information about comparative mortgages.

A Choice investigation found only one of 18 branches tested had provided consumers with home loan fact sheets in keeping with federal government reforms.

"The Move Your Money campaign is about consumers standing up and saying enough is enough," Choice spokesman Christopher Zinn said.

Australian Bankers' Association chief executive Steven Munchenberg said he was confident banks were providing loan fact sheets.

But he said there was better comparative loan information available and if consumers were unsatisfied they were free to switch lenders.

ACTU President Ged Kearney said the big banks were now more profitable than before the GFC, recording a combined profit of more than $25 billion last year.

She described as appalling attempts by the banks to justify higher interest rates when the Reserve Bank had decided to keep the official rate unchanged.

"Australians now have the power to recoup their money and move banks and unions will ensure they know how they can do this," she said.

Mr Munchenberg defended the banks, saying the cost of borrowing money had gone up, profit margins were down and banks had to maintain profitability.

"We're not claiming that we're doing it poor or whatever; the reality is though that we have to maintain strong profitability like other banking systems around the world."

If not, international banking systems would not continue to lend Australia the money it needed to keep the economy ticking over, Mr Munchenberg said.

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