Dishonour Fee Survey Results

Brisbane-based firm Debt Mediators Australia released an “Online Dishonor Fee Survey,” with results indicating that dishonour fees are pushing many Australians into bankruptcy.

Two-thirds of survey respondents said that dishonour fees prevented them from making their debt repayments on at least one occasion. It also highlighted how dishonour fees impacted on their capacity to pay bills regularly

Debt Mediators Australia senior insolvency consultant Ben Paris was not surprised by the results.

“Our clients’ income generally just manages to cover their expenses,” Mr Paris said.
“Many have borrowed heavily in the past and their wages have failed to keep pace with the rising cost of living. A dishonour fee might be an annoyance for most people, but for someone in their situation, missing one payment means they’ll never catch up.”

“Most respondents incur dishonour fees every month ranging from $26.00 to $50.00 per direct debt; it’s money they just don’t have.”

“We regularly see clients’ bank statements with $200.00 or more being paid in dishonour fees per month, and these survey results really back that up,” he said.

Recently released Reserve Bank figures show how profitable dishonour fees are for Australian banks. In 2008, Australians banks collected $961 million in dishonour fees, or an average of $43.00 per Australian.