A news story yesterday at the Sunday Telegraph reported that Westpac is the worst of the big four banks for its charges on popular lending products like mortgages, credit cards and car loans compared to those charged by credit unions and non-bank financial institutions.
The article was based on a research conducted by InfoChoice, an Australian finance comparison site, which noted that potential savings of $6.7 billion could have been made from mortgages had borrowers used the lending facilities of non-bank lenders or credit unions.
On average, the report said, customers with Westpac were worse off by more than $4,165 a year compared with those using the financing facilities of non-bank lenders based on an assumed $300,000 home loan, $10,000 in an access savings account, a $25,000 car loan and $3,000 credit card account. Altogether, this bundle of finance facilities would cost a customer a total of $23,064 a year at Westpac.
The research, according to the story, examined the rates, fees and charges on a range of “popular banking products.” The National Australia Bank, said the report, is about $600 a year cheaper than Westpac.
As expected, Westpac came out with a statement not so much to defend its position but rather to point out that the study was restrictive in that the survey focused only on selective banking products offered by the bank. As a result, the figures, claims Westpac, do not represent an accurate measurement of its competitive position.
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