Aussie Customers Treated Better with New Banking Code
By Vittorio Hernandez | February 1, 2013 9:18 AM EST
Financially hard-up Australians could expect better treatment from their banks beginning February 2014 when the updated Code of Banking Practice takes effect.
Crafted by the Australian Bankers' Association, the updated code sets benchmarks for fairness, transparency, behaviour and accountability from local lenders.
Among the changes that bank customers could expect are new and stronger provisions that will particularly apply to borrowers who have difficulty meeting their monthly amortisations.
Banks would also be required to provide information to concession cardholders about the availability of no- or low-fee accounts and to send borrowers with home mortgages yearly reminders about their insurance dues.
There will also be new standards how banks must assist clients from remote indigenous communities.
All major banks in Australia, including the big four, signed the current code and are bound to follow the updated code once it is adopted.
The big four are often criticised for not passing in full interest rate cuts made by the Reserve Bank of Australia.
On Thursday, ANZ Bank announced it will adopt the code, making it the first lender to make an official commitment to the updated code. ANZ said as part of its commitment to the updated code, it will invest further in training staff to help them recognise a customer who may qualify for an account with no- or low-standard fees and charges.
Michelle Crawford, the deputy chief executive officer of Good Shepherd Microfinance, welcome the release of the updated code because changes to consumer banking rules and tighter capital requirements demanded as an aftermath of the 2008 global financial crisis generally favoured profitable customers and excluded people on low income.
To contact the editor, e-mail:
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Kate Middleton's Pregnancy Hearsays: Possible Evidence Revealed [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
Join the Conversation
- Malaysian Airlines Flight 17: Air Carrier to Give $5,000 Assistance to Victims’ Families; Bankruptcy Looms as 2 Air Mishaps Would Cost Firm Minimum $80.55 M Compensation
- Foxconn And Pegatron Corp Readies For Apple's iPhone 6 Mass Production This Month
- KFC & McDonald’s Accused of Serving ‘Expired’ Meat to Customers
- Malaysian Airlines Ukraine Tragedy Hits Asian Stock Markets
- California Fruits Recalled in USA and Canada for Possible Listeria Contamination
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Sony PlayStation 4 Outsells a Resurgent Xbox One in June
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- NVIDIA Shield Gaming Tablet with Tegra K1 SoC Reported to be Released on July 29
- BlackBerry Passport Video Leak, Release Date, Five Fresh Features to Anticipate [Watch YouTube Clip] --Reports
- Iphone 6 Release Date Fast -Approaching, Reuse and Recycle Program Now in Australia