Sydney, 17 October, 2001:
The Australian Bankers’ Association (ABA) says the industry has already undertaken initiatives which meets the majority of the ideas contained in the ALP Banking Policy which was previously released in March.
David Bell, Chief Executive of the Australian Bankers’ Association, said: “Many industry projects are underway addressing key community concerns about affordability and access to banking services.”
“This proves that industry can work together with community groups, regulators and governments to produce positive outcomes for the community which are a real alternative to the heavy hand of legislation.”
“The industry’s Action Plan was announced in March which combined with the second generation Code of Banking Practice is a comprehensive response to community concerns.”
“Guaranteed minimum standards for a safety net basic bank accounts have already been announced by banks in March and now many banks offer their own basic bank accounts which means that eligible customers can enjoy free banking.”
“These accounts are provided to holders of Commonwealth Government Health Concession Cards , potentially five million Australians, which include pensioners, unemployed and others in the community who need a helping hand.”
“Australia was the first banking industry in the world to voluntarily offer these minimum standards to the community.”
“On access, a Disability Action Plan was lodged in April with the Human Rights and Equal Opportunity Commission to overcome access barriers to electronic banking and banks have adopted the Transaction Services and Branch Closure Protocol for ongoing face-to-face banking services in rural and remote areas.”
Mr Bell said the review of the Code of Banking Practice which was completed last week will lead to major advances in consumer rights.
Mr Bell said key changes to the Code will see:
- &Mac183; Consultative community forum created leading to improved communication between the ABA, consumer, community groups and regulators;
- Banks promising to act fairly and reasonably towards their customers;
- A widening of the scope of the Code to cover small business and an extended range of banking services;
- Independent, transparent monitoring of Code compliance and banks being accountable for breaches of the Code;
- Bank credit card conditions informing customers about chargeback rights;
- Improved disclosure including to prospective bank customers;
- Greater pre-contractual disclosure for intending guarantors so they can better understand the risk of giving the guarantee;
- More information about banks’ complaints handling procedures and timeframes for resolving complaints;
- With a customer’s agreement, banks will to help them resolve financial difficulties regarding their bank loans.
“ABA will now set up an appropriate consultative process for drafting the new provisions into the Code which will include community and regulator representatives. We are looking forward to the new Code being finalised and released in the New Year,” said Mr. Bell.
For Further Information Contact:
Heather Wellard
ABA PR
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS