Parliament has taken the banking industry bull by the horns and is to move your problems with the banks high up on its agenda.
A full parliamentary investigation into high charges, high interest rates, bad service, the treatment of the poor and of pensioners, the lack of competition between the banks and the need to regulate both banks and micro-lenders to give you better protection is now underway.
The investigation is the result of a three-day hearing of parliament's Trade and Industry Committee this week, partly triggered by Personal Finance investigations into banks .
Rob Davies says the committee, which he chairs, will act fast to prepare recommendations to parliament before the end of the current session on April 30.
The committee will set up a small working group with a researcher to pull together a "serious report" as quickly as possible, Davies says.
During the hearings banks were hauled over the coals for high bank charges and a lack of competition. Both banks and micro-lenders were cross-examined on high interest rates.
Critics included the Department of Trade and Industry's Alistair Ruiters, Personal Finance Editor Bruce Cameron and Zwelinzima Vavi of the labour federation, Cosatu. Angry bank customers were also given a chance to have their say.
Banks were accused of slamming the door in the face of the poor and forcing poor households into the arms of micro-lenders, some of whom charged exploitative interest rates and used unscrupulous methods to lure customers. The Department of Trade and Industry said the steep increases in bank charges had hit poorer customers hardest.
Responding on behalf of the banks, the Banking Council's Bob Tucker acknowledged that higher bank charges penalised poorer customers but argued that these increases were necessary and that banks were still not covering all their costs.
Davies says the hearings spotlighted problems of great concern to the public.
"We have to ask whether banks have abandoned low income consumers."
If this is so, he says, the government will probably want to influence the trend.
Davies says the hearings showed the need for greater transparency for clients both of banks and of alternative lending institutions.
Other issues which the working group will need to study, he says, include:
* Short term solutions to the problem of exploitation by micro-lenders;
* The need for a more credible Ombudsman for the banking industry;
* Whether or not more regulation is needed;
* Whether or not consumer courts would be useful;
* Whether or not interest rates should be capped; and
* How to promote alternative institutions such as credit unions, stokvels and the PostBank.
The Banking Council's Tucker agrees that greater disclosure is necessary and that the Ombudsman's office must be beefed up. In addition, he says, consensus has been reached on the need for:
* Appropriate consumer credit legislation;
* Fair competition within the entire financial services industry; and
* The removal of barriers to entry for new banks.
He says the banks have made far-reaching proposals which could go a long way in addressing the high levels of consumer anger and dissatisfaction.
15 TIPS TO HELP YOU BEAT YOUR BANK
* Shop around for the best deal on each account - you don't have to do all your banking at one bank;
* Negotiate to get the lowest possible interest rate when you borrow money. Also take into account any charges that are added on;
* Bargain to get the highest possible interest rate when you deposit money;
* Remember you can also negotiate bank charges;
* Play banks off against each other to get the best deal you can;
* Get any agreement with the bank in writing;
* Ask for a full list of options for each account;
* Use your bank's own ATMs wherever possible; transactions at other banks' ATMs are more expensive;
* Plan your withdrawals so that you make as few as possible;
* Avoid using cheques;
* Try paying accounts electronically;
* Remember you pay extra for the service you receive over the counter, so make sure you get it;
* Banks can also make mistakes, so check your monthly statements;
* Don't be tempted to take out more credit than you can afford; and
* Investigate alternative options such as money market unit trusts, credit unions or PostBank.