Red-faced Anz Pledges To Watch Its Words On Credit Card Fees

Red-faced Anz Pledges To Watch Its Words On Credit Card Fees

Sun Herald

Sunday October 31, 2004

David Potts

A lesson for consumers always watch the fine print, David Potts writes.

THE ANZ Bank has vowed never to say "never" again after being caught imposing a fee that was never ever supposed to happen.

And the lesson for credit card holders is, check the fine print. Always and forever.

The bank admits "with the benefit of hindsight" it made a mistake when, in a blaze of publicity eight years ago, it said the popular Telstra Visa card would have "no annual fee EVER (its emphasis) if you spend just $1500 each subsequent year with your card, otherwise the fee is just $22".

But six years later it imposed a fee. And, to rub salt into the wound, it was more than $22.

The Telstra Visa card was replaced last month by the ANZ Rewards Visa card, but the never-ever fee was introduced well before the changeover.

An 82-year-old pensioner who kept the original mail-out boasting "freedom from annual fees", and who always spent well over the minimum $1500 annual spend to get the fee waiver, complained to the bank.

"They replied that costs had gone up," he said. He sent another letter last month when he noticed a $48 fee on his statement an annual fee of $26 and a reward program fee of $22.

He was told he'd been advised two years ago that the annual fee would be introduced. But, as he said: "That's not the point. There was nothing to say that condition may vary at some future date." The original mail-out letter makes no mention of a fee for the rewards program, either.

The bank said it would waive the $26 fee for this year as a "gesture of goodwill", but pointed out "the credit card terms and condition (sic) states that the ANZ reserves the right to make changes to the product structure".

The waiver of the waiver in 2002 was due "to the increased cost of running the loyalty program", an ANZ spokeswoman said.

"We tried to give advance notice. And it didn't come into effect until the next issuing date."

The bank had received only the odd query about the fee.

But she said: "We now try to avoid absolute statements." The bank will honour the original never-ever offer.

Other "no fee ever" cards on offer are Virgin Money's MasterCard and the National Australia Bank's Ant card.

The National's website boasts: "Apply now and never pay annual card fees again."