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:
Join the Conversation
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- BlackBerry Classic (aka Q20) Keyboard Shortcuts Explained In A Quick Video
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia