Westpac's Double Standards

[keithj]

If it comes across as a whinge - then so be it. It don't matter, I am setting the stage up as to why I need to be looked after if they want my business. Simple.

... if it gets to you see the state manager then well done.... it'd be good to hear the outcome. I think you'll be in a v. small minority who does whinge & get a result. 99% will take it on the chin & do nothing. However, as others said, the letter does ramble a bit & doesn't specify a specific outcome.

 

[Gentle_Chief]

Gentle Chief

I like your work, as i'm sure everyone (banking CEO's aside) does.

Can they tell me why (and i'm taking figures out of my bottom here, so the "analysts" amongst us are welcome to dispute them) when spreads have dropped 100 points from where they were at the worst of the crisis, they are still increasing their rates?

Let's not forget they didn't pass on all of the rate cuts, and I'm pretty sure we are getting close to an increase of almost 1% against what the spread was against the official rate. i.e. before the crisis they were x% above the reserve and now all the competition has been wiped out, the spread is x+1%.

I'm a bit disappointed, but perhaps not quite as angry as you. I guess I just expected this to occur, once the competition was removed. If you think of the "big" competition, both bank and non bank, over the last 5 years, it would look like this:

• 
  Bankwest
  St George
  RAMS
  Aussie
  Citibank
  Macquarie Bank

The first three have been bought by the big 4 and the last 3 aren't lending any more (not actually sure what Aussie are up to?)

There's a few survivors like BOQ, Suncorp and some credit unions, but they are just fringe players.

In short, what would Maccas do if HJ's stopped selling burgers? I'm guessing any sort of Angus would cost more than $10...

Well said Matey,

We need more competition for sure!
Big 4 needs competition from the Medium 20 and Medium 20 needs competition from the smaller 100. Look at Woolworths-Coles strong monopoly on Australian food retail - we are paying on average 15-20% premium on every bottle of jam or a box of tissues.
Have you ever shopped at Aldi - the German chain. Great quality, unbelievable prices.
Just that they are not BIG players (yet!) to be serious competition. They dont have the reach either. But thats bound to change with smaller players like IGA, Aldis etc doing well during the GFC where $100-150 would buy an average family a trolley full of groceries for the month.

However Oz Banking is quite the opposite, unfortunately.
Mergers and Acquisitions is paving way for just a few players to set the rules of play. Not good at all.

 

[Ausprop]

Agree.

It comes across as a whinge.... either walk completely, negotiate a bigger discount, diversify lenders or you should have fixed back in April. They are in business, just the same as you, deal with it.

There were plenty of posts here on SS warning that this was v. likely to happen, and plenty here chose to manage their risk by fixing.

they are near monopolies so you cant. It's a case of take it or leave it. the big 4 banks aren't businesses becasue they operate in a protected and risk free environment

 

[Shadow]

Westpac Apology?

I don't know if others have received a link to this online letter from Westpac?

http://info.westpac.com.au/edm/wn0358/online/edmpeter.html

On behalf of Westpac, I'd like to explain our recent rate change.
Westpac recently made the difficult decision to raise its variable home loan rate by 0.45%p.a. This change took effect on 4 December 2009.

As you have your home loan with us, I realise that this has a direct impact on you. I'd therefore like to say that the decision to raise the rate wasn't taken lightly.

Why we increased the rate.
In looking at the amount of the increase, we wanted to be fair to our customers, at the same time ensuring we maintain a sustainable business model, that will see us continue to improve our service and continue to provide home loans to a considerable number of Australians.

Where you can find more information.
For more information and to help you further, we've set up westpac.com.au/interestrate which covers commonly asked questions, gives tips on lessening the impact of rate rises and has a calculator to see the impact on your repayments as a guide.

Who to talk to if you have more questions.
If you have any more questions, please talk to your local Bank Manager in branch, or call us on 1300 368 765. Or please feel free to email me at [email protected]

You have my commitment that if and when funding conditions change we will be just as responsive in reviewing our rates.

Yours sincerely,

Peter Hanlon signature

Peter Hanlon
Group Executive
Retail and Business Banking.

So if anyone wants to sent Peter an email explaining how they feel... [email protected]

 

[Ausprop]

With the new changes the Rudd government put in place, switching costs are now a lot lower than what they used to be.

Hi Michael - what changes are these?

 

[josko]

I don't know if others have received a link to this online letter from Westpac?

http://info.westpac.com.au/edm/wn0358/online/edmpeter.html



So if anyone wants to sent Peter an email explaining how they feel... [email protected]

Will you walk into my parlor?" said the Spider to the Fly.

"Why we increased the rate.
In looking at the amount of the increase, we wanted to be fair to our customers, at the same time ensuring we maintain a sustainable business model, that will see us continue to improve our service and continue to provide home loans to a considerable number of Australians."

So the reason Westpac raised their rates to the extent they did was to be fair to their customers.

Oh thank-goodness for that.

Regards JO

 

[josko]

Hi Michael - what changes are these?

Ausprop,

The same changes that he made to Fuel prices and Groceries.

Regards JO

 

[Ausprop]

Will you walk into my parlor?" said the Spider to the Fly.

"Why we increased the rate.
In looking at the amount of the increase, we wanted to be fair to our customers, at the same time ensuring we maintain a sustainable business model, that will see us continue to improve our service and continue to provide home loans to a considerable number of Australians."

So the reason Westpac raised their rates to the extent they did was to be fair to their customers.

Oh thank-goodness for that.

Regards JO

I had to read the highlighted part a couple of times. I was trying to see what the reason was too. A real politicians answer it was.

Imagine if Caltex doubled the price of the fuel...

Why we increased the price per litre.
In looking at the amount of the increase, we wanted to be fair to our customers, at the same time ensuring we maintain a sustainable business model, that will see us continue to improve our service and continue to provide quality fuels to a considerable number of Australians

oh ok then, fair enough. SO why did Woolies triple the price of bread then???

Why we increased the price of bread.
In looking at the amount of the increase, we wanted to be fair to our customers, at the same time ensuring we maintain a sustainable business model, that will see us continue to improve our service and continue to provide quality bakery products to a considerable number of Australians

oh phew. for a minute there i thought i was being RIPPED OFF!

 

[13910]

Its all okay. I'm sure you will be pleased to know I walked by Westpac yesterday and someone was handing out free chocolate - that must be the increased funding costs.

They are trying to lure new clients into their cottage using treats. So fitting.

 

[sash]

Kind of like a spider luring a fly.....me bad.....slap ...slap...

Its all okay. I'm sure you will be pleased to know I walked by Westpac yesterday and someone was handing out free chocolate - that must be the increased funding costs.

They are trying to lure new clients into their cottage using treats. So fitting.