Australia's banks may have a fight on their hand over penalty fees, with the federal treasurer Wayne Swan threatening increased regulation if they don’t cut fees and make switching banks easier. Mr Swan sent a letter to the CEO's of the nation's five largest banks saying "I would encourage lenders to review their existing fee structures, especially where exit fees are high relative to industry averages and might not reflect the underlying cost of terminating the loan". He also urged the banks to consider simplifying the wording of documents and to improve the level of disclosure of fees.
