Unfair and unsafe practices

"As we were reminded during the global crisis - [banking] is effectively guaranteed by the government." --Ross Gittins, Sydney Morning Herald1

Because of that guarantee, banks can make huge profits with little risk. But what have Australians got in return? Click here to hold the banks to account.

During the global financial crises Australian taxpayers underwrote the banks with a multi-billion dollar guarantee of bank deposits--and we still are! In return we get an uncompetitive market, collusive behaviour and unfair banking practices that hurt disadvantaged Australians the most.

When banks bury penalty fees in the fine print, increase credit card limits without customers being asked and raise interest rates above RBA increases, they're doing it because they can. As entities that are now 'too big to fail' banks know that they can treat customers with disdain and take risks they otherwise couldn't afford.

It's time we hold the banks to account and get a real return on our investment--including fair lending practices, an end to punitive fees and real low-fee account options. But it won't happen until we restore the true twin pillars of our financial system: real competition and effective regulation.

With all the media and public attention, there's never been a better time to reform the banks. But it can only happen if tens of thousands of Australians sign onto this petition calling on the Government to reinforce those twin pillars:

http://www.getup.org.au/campaign/TwinPillars

What can we do to make the banks fairer?
Portable bank account numbers, so you can port your bank account like you can port your phone number.
Drastically reducing mortgage exit fees, so we can move our mortgages to an institution charging lower rates.
Increase the powers and mandate of the ACCC to reduce the concentration of power in the banking sector.
We're underwriting the banks, so it's time they lived up to their end of our social contract. Click below to hold the banks to account:

http://www.getup.org.au/campaign/TwinPillars

In order to keep our financial system safe and sound, we need to keep our banks fair and honest, especially in how they deal with low-income Australians. That means pressuring the Government to increase banking competition and regulate for the prevention of unfair banking practices.

But right now the Government is only looking at the most minimal reforms. We can change that by building a movement of Australians behind this campaign.

Tell the Government to put a stop to unfair banking practices, by signing up to the twin pillars of our financial system.

Thank you for taking part,
The GetUp Team

PS - Experts tell us that the Australian financial system was not spared from the GFC because of the wisdom and forbearance of our bank executives. It was saved by prudent regulation, such as capital requirements that kept Australian banks from taking the types of risks that brought U.S. financial institutions to ruin, and by the banking guarantee underwritten by Australian taxpayers. We need real competition and effective regulation to keep our banking system safe, strong and competitive. Click here to sign up to these twin pillars of our financial system.

1Ross Gittins, 'Use your brain before joining the lynch mob', The Sydney Morning Herald, 6 November 2010.