The big banks have an incredible amount of power and influence.
The big companies are allowed to control their own money and the financial system.
So why should we all pay their fair share?
AAP/ABC News 7.3 million Australians have a mortgage, the big three have a lot of shares in the major banks, and the big five have a great deal of power.
The banks have been paying out more than $1 billion a year in fees to their financial sector clients, which they say are necessary to ensure their products are in the public interest.
The big banks’ power in our lives is a reflection of the power they wield over our financial system, which means we’re being ripped off every single time we shop for groceries, pay our electricity bills, borrow from our bank, buy a house, buy or rent a car or buy a home.
For the past decade or so, the banks have also been ripping off the public by charging interest rates that are far above inflation.
That’s not right.
These fees aren’t justified and they are not going to go away, either.
They’re not going away any time soon.
The biggest banks have no problem charging huge fees to people who are already paying too much for their mortgage, car loan, rent or mortgage insurance.
They don’t care about the hundreds of thousands of Australians who aren’t making payments on their mortgages, their electricity bills or the hundreds who have been evicted from their homes.
They don’t even care about thousands of ordinary Australians who are struggling to pay their bills and aren’t getting their fair deal from the big four banks.
In the past year, the Australian Competition and Consumer Commission (ACCC) has reported to the parliament that, while the big six banks have made $13 billion in profit, the ACCC has identified a number of instances in which they have charged “unreasonable” fees, which it says are unlawful and could be costly for consumers.
The ACCC says the fees are not justified.
“The ACCC is particularly concerned about the amount of money being charged by the big Australian banks,” it said in a submission to the Senate inquiry.
Its submission cites examples of big banks charging $1,500 more per month on the amount they were charging a month ago and charging “unreasonably high” interest rates on loans that have a much longer term than the time they were originally written off.
It’s estimated the average interest rate for these loans is 10 per cent, and “the average monthly cost of interest is more than double that”.
Big banks have refused to comply with the ACCCC’s submission and it’s now up to Senator Sam Dastyari to decide whether to hold hearings into the big fees.
AAP/AAP Images 7.4 million Australians don’t have their power to be involved in the system, they have to buy their own power source and that means we have a huge amount of control over the power that the big big four corporations control.
If you’ve got a roof over your head, you don’t want to pay a big bill from a big bank.
The ACCCC submission says that is wrong.
We need a system that lets us control the banks and the power we give them.
As for the banks’ fee rates, the submission says: “the vast majority of consumers do not see a benefit in paying any interest on their loans.”
It adds that “the banks’ charging of interest rates below inflation, despite the banks having an incentive to reduce costs, is likely to be harmful to consumers and to the broader economy.”
If we were really going to do things right, we would abolish interest on deposits, stop charging fees for the loans we buy, and get rid of the big bank-owned credit rating agencies and get the big credit rating companies to sell their ratings directly to consumers.
ABC News 7/4 million people are paying interest on loans which are more than five years old.
And it’s not just big banks that are paying big fees: many small businesses and small businesses-run by small groups of people- are paying fees.
For example, in Victoria, it costs about $7 a week to run a small business.
The state government says this is because the big 4 banks and other financial institutions are charging the biggest interest rate, about 20 per cent.
But the big 3 banks have spent more than a decade and $1.3 billion lobbying the Victorian Government to give them even more power.
You can see that the major three banks have a powerful lobby in Victoria.
They’ve been paying more than 50 per cent of their fees to the ACCCE.
What’s more, in 2015, the Commonwealth Bank, which is owned by the Commonwealth, decided to raise its rates even higher and it would have cost $1bn to do so. Now,