WestpacTrust to bring in new charges

By JOSIE CLARKE

Already unhappy WestpacTrust customers are about to be hit with a new set of bank fees.

From May 1, customers will pay a raft of new charges for services that used to be free: $2 for over-the-counter credit card payments and printout requests, $5 to set up a direct debit and $4 to change a direct debit.

After April 1, customers will pay 50c for every phone banking call they make over the six free calls a month.

WestpacTrust is already unpopular with its customers. Consumer magazine's latest bank survey gave it the second worst ranking of the major banks and said it was one of two to have a "very poor commitment to service." The bank rated below average for its charges, quality of service, information, and an overall rating.

The new charges are outlined in the bank's latest in-house newsletter, which says: "We've thought really hard before introducing the charges, especially in light of the recent Consumer article."

Spokeswoman for WestpacTrust Jane Anderson said the services had never been free. The charges had previously been hidden elsewhere, in margins on lending and deposits.

"Not all customers who have an account with us have a mortgage, so we decided that it was fairest if the customers who used the various facilities paid for them."

Ms Anderson expected some customers to be disappointed, but said there were lower-cost options for each of the new charges.

For example, a customer could get a mini-statement from an ATM machine instead of a printout over the counter, or could make a credit card payment over the phone.

She said Consumer's survey results did not surprise the bank, whose own research had already shown customer dissatisfaction.

The bank ordered 6500 copies of the magazine and sent them to every staff member as part of its efforts to upgrade customer service.

Consumer said the results were particularly galling because when Westpac bought Trust Bank two years ago it had rated poorly, while Trust Bank had rated well.

"We've been waiting with interest to see which 'service culture' would prevail ... Now we have the answer: the dead hand of Westpac has killed off the customer service standards for which Trust Bank was renowned," the magazine wrote.

Yesterday, Consumers' Institute head David Russell said the fees seemed to be in line with those charged by other banks, but WestpacTrust seemed to be "goading" the Government into action over developing a community bank.

"One can only wonder why they are introducing further charges when Jim Anderton [Minister for Economic Development and responsible for the Public Trust Office] clearly indicated he has some form of community bank in mind.

"Inevitably, they will drive customers away and one can only conclude they don't really want those customers."

Chris Moore, professor of finance and banking at Massey University, said the purpose of fees, other than to cover costs, was to boost the bank's non-interest income and discourage customers from using branches.

"The whole idea is to change people's banking behaviour. But now people who have been encouraged into banking by telephone are being charged more and more for it."