Get nabbed! National Australia Bank slugs it credit card users in defiance of RBA
26/04/2012 
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National Australia Bank will continue slugging customers for using “non-NAB” cash machines, in defiance of the Reserve Bank.
The RBA said financial institutions would have “no case” for levying such fees once new rules on ATM charges take effect on March 3.
Under the new rules, it will cost banks about the same for their customers to use a foreign ATM as to use one of their own machines.
But The Daily Telegraph has obtained letters from the NAB informing its customers that, from March 3, they will be charged 50c for each ca sh withdrawal or balance inquiry they make at a rival ATM.
The decision means that NAB customers will then be stung for two sets of fees when they use a rival cash machine – once from the ATM owner and again by their own bank.
“Wherever possible, our customers should use an NAB ATM,” said a bank spokesman.
“We are pleased to be in a position to adjust the non-NAB ATM fee to 50c – a significant reduction from the current cost of $2″, it said.
The other big banks refused to confirm whether they would also be levying such a fee. All said their charges were “under review” and announcements would be made nearer the time.
Christopher Zinn of the consumer group CHOICE said: “This is worrying because if history is any guide, the banks will all settle at about the same level of fees.
“NAB’s decision undermines the RBA’s intention to provide customers with more clarity on charges. Financial institutions should remove foreign ATM fees altogether so consumers do not get slugged twice.”
Under the RBA’s new system, banks will no longer charge each other for using their ATMs.
Customers will instead be charged directly by the owner of the ATM, who are free to set the fees at whatever levels they like.
This could lead to charges soaring, especially at ‘independently’ owned ATMs in convenience stores or pubs, or in remote locations where customers have no alternative machines.
“Some machines in the UK and US charge as much as £5 or $US8, and we don’t want to see that level of gouging come here,” Mr Zinn said.
As a result of the new rules, CHOICE is launching its own “ATM Watch” scheme to monitor Australia’s 26,500 ATMs – about 50 per cent of which are independently owned.
Mr Zinn said said the scheme will plot the cheapest and most expensive areas so those travelling to areas with expensive ATMs could get cash before they travel.
Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers.
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