BANKING OMBUDSMAN’S ANNUAL REPORT- SCHEME ACCESSIBLE AND EFFICIENT FOR CONSUMERS Sydney, 29 October, 2001: The Australian Bankers’ Association (ABA) said the Australian Banking Industry Ombudsman’s (ABIO) Annual Report showed that the scheme was accessible and efficient for consumers. David Bell, Chief Executive of the ABA, said the independent scheme set up by the banks eleven years ago to help consumers solve their complaints quickly and easily, continues to work efficiently for the benefit of consumers and the industry. Mr Bell said the ABIO has been solving consumer problems faster with the cooperative help of the banks and the resolution rate for cases had improved. “It is pleasing to notes that of the 4427 closed cases, 82.4% were resolved after referral to the bank and without the need for investigation by the Ombudsman.” “The improvement on last year in the resolution times of complaints is a tribute to the Ombudsman’s office and the banks.” “The median age of open cases was 52 days compared to 86 days last year and of the cases referred to a bank, 40.3% were closed within 60 days, compared to 38% last year.” “The ABIO is an independent scheme paid for by the banks as part of their service to consumers.” Mr Bell said the Review of the Code of Banking Practice has just been completed and the significant changes that will be made to the Code are relevant to a number of the disputes which are resolved by the Ombudsman’s office. Mr Bell said key changes to the Code will see: ·        More information about banks’ complaints handling procedures and timeframes for resolving complaints; ·        Improve banks’ internal complaint handling processes; ·        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;  ·        With a customer’s agreement, banks will try and help with financial difficulties regarding their bank loans. “In addition, banks moved quickly to adopt in July this year, changes to the Direct Debit rules which make it easier for a consumer to cancel a direct debit authority.” “Customers now inform the bank directly to cancel a direct debit, rather than having to contact the supplier of the service.” For further information contact:   Heather Wellard ABA PR elephone:02 8298 0411 Mobile:    0409 830 439 Notes for editors: ·        The Banking Ombudsman Scheme was set up in 1990 to help individual bank customers sort our their unresolved complaints with their banks. Since then, the Code of Banking Practice has been introduced. ·        The Code requires the banks to provide personal customers with a free, external and independent process for resolving disputes and has been expanded to cover small business. ·         More recently the Scheme was extended to allow small business to lodge complaints. ·        It is independent. The Ombudsman is not employed by the banks, but by a Council which has equal numbers of consumer and bank representatives. It is a non-Government Scheme and there are other similar schemes operating for people who have problems with their insurance company and their telephone company. ·        It is quicker and easier than alternatives. Courts and tribunals can take a long time and be very costly. You lose none of your legal rights by bringing a complaint to the Ombudsman. Customers are not bound by the ABIO decision, but if the customer does accept the decision – the bank is bound to comply. ENDS