Australian Securities and Investment Commission (Fair Bank & Credit Card Fees) Amendment Bill 2007

The Australian Securities and Investment Commission (Fair Bank & Credit Card Fees) Amendment Bill 2007 has been referred to the Senate Economics Committee which is due to report on 17 September.

The Bill seeks to implement the following measures:

• prohibiting penalty fees imposed on failed financial services transactions if the customer had no actual or constructive knowledge that the transaction would fail. An example of a failed transaction where the customer had no actual or constructive knowledge that the transaction would fail is the presentation in good faith by a customer of a cheque which is then dishonoured;
• ensuring penalty fees for financial services represent a reasonable estimate of the loss suffered by the supplier as a result of the conduct by which the consumer incurs the penalty fee; and
• enabling ASIC to enforce undertakings from financial services suppliers with respect to penalty fees.

The closing date for submissions is Friday 31 August 2007.