The BBC have had an interesting piece on their newspages the last few days concerning the application of unlawful penalty charges in other countries.

According to the report, the Israeli Government have just agreed that the countries central bank should now regulate commercial bank charges, and as we all know, over here in Blighty thousands of us have successfully reclaimed our overdraft and credit card charges.  The BBC then decided to take a more indepth look via their correspondents in South Africa, the Czech Republic and Australia.

The BBC's correspondent in South Africa explained that on his monthly statements you would regularly find charges for cash withdrawal fees, cheque service fees and overdraft service fees - even though he says he was never overdrawn.

The cash withdrawal fee worked out at 30 Rand, which is more than $4 dollars.  The cheque service fee of almost $11 dollars and $2.50 for an overdraft service fee.

A recent study by the international consulting firm Cap Gemini concluded that South Africans suffered some of the highest charges in the world, and as you'd expect, has been highly criticised by the banking industry who defend themselves by saying that comparisons with other countries are both unrealistic and unfair.

However campaign groups, such as the Financial Sector Campaign Coalition are pushing for Governmental intervention to introduce cheaper banking services that don't shut out the countries vast under class.

Organiser Tshepo Nkwe has accused South Africa's top four banks of benefiting from their virtual monopoly to reduce the success of any competitors, and taking advantage of their ability to introduce new and confusing products that allow them to make obscene profits from relatively uneducated consumers.

"This is not just about profits but about accessibility.

"Right now, there is a huge sector of society that has no physical access to banks, and couldn't afford them even if they did."

The correspondent from the Czech Republic pointed out that out of the countries 37 banks, 29 of them were now owned by foreign groups with the big names from the western European financial sectors dominating the market.

In May, a court ruled that account charges levied by CSOB (a Belguim owned bank) were not 'unjustified' as campaigners had claimed.  The court decided that the clients had been told about the fees, including fees for closing an account, when they first entered the contract.

Sounds very similar to the ridiculous attempts in this country by banks to claim they are service fees.

Consumer rights group, SOS, received over 800 complaints and requests for help last year alone, are preparing an appeal against the decision and they are hoping to force lower charges through and they also want a financial ombudsman - hopefully not modelled on our own system.

CSOB and others however, have since stopped charging for closing an account, and they contend it was a business decision completely unrelated to the court case.

This correspondent holds both a Czech and British bank account, and whereas his so called 'free banking' British account has no day to day charges, his Czech account effectively charges him for looking at his balance.

It costs him 25 euro cents for a cash withdrawal, 15 euros for an annual statement and he's regularly charged an 'External Advice Fee' of 13 euro cents, for reasons he is yet to fathom.

The banks claim this is not a ripoff, and just different charges for different customers requirements.

A CSOB spokeman commented:

"As long as financial service remain a business, banking will never be free.  Business is for money.  Charity is for free."

Downunder has seen it's own share of irate customers taking on the banks, and in some ways is the situation most similar to our own.

Australian consumers have seen penalty fees rise by as much as 50% over the past 7 years.  Like Britain, the real costs because of automation have actually declined, yet the banks keep making the numbers higher.

The Aussies have a nationwide campaign, 'Fair Go On Fees' is now championed by all, if not the majority of consumer groups.

Their aim is to ensure financial institutions from charging excessive penalties on accounts when the customer goes into the red, pays a credit card late or exceeds their credit limits.

Consumers are charged $50 Australian Dollars (£21) if their balance slips into the red, and Indira Naidoo, of the consumer lobby Choice says:

"There is no other reason for these fees other than to increase profits.

"It certainly does not reflect the administration costs to the bank, which is (Australian) $3 or $4."

Just like Britain, it is the poor who suffer most.

"If you are a pensioner and go slightly overdrawn, you could end up losing a third of your income in banking fees."

Angela Knights mates at the Australian Bankers' Association are equally searching desperately for excuses.  The best they have so far is that the fees in Australia put them in the middle of the international league table.

Although sometimes you wish when they were trying to say they aren't penalty charges, they would infact not describe them as textbook penalty charges.

"Exception fees are avoidable and we would encourage customers to check their account balances if they are not sure of their account balances before making a transaction.

"Banks provide information that helps customers monitor their account balances and keep track of payments."

So hmmmm, avoidable, only payable on instances of breach of contract, in no way can they prove the figures they charge are in any way related to the costs associated with breaches - nah, never penalty charges!