Kiwibank to increase penalty fees
Kiwibank is to increase penalty fees for customers who have cheques or automated payments dishonoured. Account and transaction fees are not changing and Kiwibank's overall fees remain up to 50 per cent less than the other nationwide banks.
Chief Executive Sam Knowles said a small percentage of customers incurred penalty costs for not honouring payment commitments and that it was not fair and reasonable for this to impact on other customers.
"Kiwibank is determined to maintain its position as the bank with the lowest fees. To do this we need to make sure that the vast majority of our customers do not have to carry the costs of those who have payments dishonoured."
The new penalty fees will come into effect on 1 November 2003. Customers who have repeatedly had payments dishonoured are being contacted directly and provided with assistance to manage their accounts more effectively.
The new penalty charges are an increase in a cheque dishonour fee from $15 to $25; automatic payment dishonour fee from $7.50 to $25, direct debit dishonour fee from $7.50 to $25 and a new charge of $7.50 a month for unauthorised overdrafts.
Mr Knowles said the new dishonour fees move Kiwibank rates in line with the lowest charges by main nationwide banks.
For further information:
Bruce Thompson, Communications Manager
(04)460 6831 (027) 475 3521