ASIC REPORT SHOWS BANKS’ DISPUTE RESOLUTION PROCESSES WORKING WELL

Sydney, 22 December, 2003: The Australian Bankers’ Association welcomes the report from the Australian Securities and Investments Commission (ASIC) on financial institutions’ ‘Compliance with the Payments System Codes of Practice and the EFT Code of Conduct’.

ASIC’s main findings on compliance with the Code of Banking Practice (1993) between 1 April 2002 and 31 March 2003 are:

• an increase in banking business –  the number of transactions rose 7% from 4,334,650,348 to 4,639,911,805 and almost half a million more accounts were opened (494 787) – a rise of 1.1%;
• a rise in the number of disputes from 9 445 to 11,164;
• in the context of the increase in banking business – the rate of disputes is 2.4 disputes per million transactions, slightly up from about 2.2 disputes per million. ASIC notes that ‘this is still a small number of complaints’;
• 40% of banking code disputes were resolved in favour of the customer with another 24% settled by mutual agreement;
• banks are processing disputes more effectively – disputes outstanding at the end of the period fell from 33% last period to almost 10% this period – a significant fall; and
• the number of disputes is still well below the peak of 2000/01 despite a continuing expansion of banking business.

For further information:

Heather Wellard

ABA Public Relations

Phone: 02 8298 0411

Mobile: 0409 830 439

ENDS