HARD-hearted banks will be targeted in a new consumer campaign to force them to scrap unfair fees, poor service and dodgy computer systems.
"What needs to be changed is the culture of banking," Choice spokesman Christopher Zinn said.
"There is a definite groundswell of feeling growing among consumers that this sort of behaviour is not good enough and the role for Government is to listen to that voice."
In a series of 14 recommendations to be presented to Treasurer Wayne Swan today, Choice calls for banks to mend their ways so that "bank bashing" no longer ranks as the national sport.
"Over the years we've seen the banks become tougher, harder and more market-driven," Mr Zinn said.
"They've instituted penalty fees that were frankly unconscionable and which targeted the most vulnerable, the people who couldn't afford to pay late payment fees."
Banks had started to respond to a growing consumer backlash, which has included a $50 million class action by 27,000 consumers against ANZ over penalty fees, and some of the majors had started to drop exit fees from mortgages. But more change was needed.
"This is a way of drawing a line in the sand, to say what needs to be done," Mr Zinn said.
The conclusions from the Choice report have been drawn from a campaign started towards the end of last year calling for consumer input.
It will also be presented to the Senate Estimates hearing into the banking system and the chief executives of the major banks.
"People have sophisticated ideas," Mr Zinn said. "They don't have to have a degree in finance to have an idea of how the system is working."
While consumers were largely angry over fees, recent computer system malfunctions at both the Commonwealth Bank and National Australia Bank had also lessened trust in the banking system.
Choice said it would give the banks 12 months to effect change before lobbying Parliament to institute regulations forcing them to do so.
"Banks do not live in a bottle, there is change that is ongoing," Mr Zinn said.
"But what we want to make sure is that the changes they're making are lasting and meaningful, that it's not all just spin."
