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National Bank of Australia will cut certain penalty fees associated with credit cards beginning 4 Dec., the bank announced on Thursday. The bank will abolish the AU$25 (US$23) overlimit fee on all credit cards, making it the first bank in Australia to do so. It also will cut credit card late-payment fees to AU$5 from AU$30. In addition, the bank will introduce a free opt-in SMS text message payment-reminder service to alert customers when credit card payments fall due. Australian Banks have been under pressure lately to cut fees associated with credit cards. Such banks as Westpac and ANZ also have reduced penalty fees associated with credit cards. Elissa Freeman, senior policy officer for consumer group Choice, tells CardLine Global National Bank is now the frontrunner among Australia's largest banks in cutting fees. If the other banks want to remain competitive, they will need to review their fees again, she contends. According to Choice, Australian households last year paid $415 million in credit card penalty fees.
