Labor will stop hidden fees by requiring banks and remittance providers to disclose the full cost of international remittances prior to remittance.
Right now, many banks and money transfer companies are confusing customers with a mix of fees and exchange rate mark-ups. The result is that it is almost impossible to compare the true cost of transferring money overseas.
One study found that a person who tries to send $1,000 from Australia to another country will see $77 eaten up by transaction fees and exchange rate spreads.
Labor wants to ensure that Australians who send money overseas get a competitive deal.
That’s why a Shorten Labor Government will require remittance providers to disclose the full cost of international remittances prior to remittance, bringing it into line with comparison rates Australians already enjoy when shopping for car loans, mortgages and credit cards.
A Shorten Labor Government will task the Australian Competition and Consumer Commission to determine if misleading ‘no fees or charges’ advertising by remittance providers can be controlled using the Australian Competition Law, or if further enforcement mechanisms are necessary.