The main features of the revised Code:

·        Small Business: The Code’s provisions now apply to small business for the first time. Small businesses are those employing less than 100 people if it is a manufacturing business or in any other case, less than 20 full-time people.

·        Hardship: If you agree, your bank will try to help you overcome your difficulties and could, for example, work with you to develop a repayment plan. This may include extending the term of the loan or changing your repayment schedule, if that is suitable. The Consumer Credit Code allows for variations to loan contracts where the borrower is suffering hardship. If your bank thinks that these provisions apply to your circumstances, it will inform you.

·        Low income or disadvantaged: If you tell the bank about your circumstances or if when dealing with you, bank staff become aware you are receiving Centrelink or similar payments, they will give you information about accounts that might be suitable for you. You can also ask for this information.

·        Transparency: Your bank will give terms and conditions to you either before or as soon as practicable after, you take up an ongoing banking service. You can also ask for a copy of the terms and conditions at any time. On fees, these will be included in or with the terms and conditions given to you and you will also be notified about any changes to fees and any new charges.

·        Branch closures: Banks which adopt the Code must comply with the Australian Bankers’ Association’s (ABA) Transaction Services and Branch Closure Protocol which commits the industry to providing rural and remote areas with ongoing face-to-face banking services for personal and small business customers after branch closure. After a branch closes, banks are committed to maintain face-to-face services through an existing outlet, franchising arrangements with the community, agency arrangements with local businesses and Australia Post, and including in-store facilities.

·        Helping the customer to choose: The Code commits banks to ensure their staff are trained to competently and efficiently discharge their authorised functions to help the customer choose banking products and services.

·        Direct debits: You can ask your bank to help you if you want to cancel a direct debit request that you have given to a supplier, like a retailer, from whom you are purchasing goods or services. Your bank will promptly process your instruction to cancel the direct debit request. If you want to lodge a complaint about an unauthorised or irregular direct debit, your bank must promptly process your complaint. In the case of a cancellation or a complaint, you will not be asked to first sort out the matter with the supplier concerned.

·        Credit Cards: Under credit card scheme rules, your bank can reverse a disputed transaction if the rules permit and the claim is made within time limits under the scheme rules. This process is called a ‘chargeback.’ You will also be given general information about chargebacks in the credit card terms and conditions when you are issued with a credit card. This general information will also be included with credit card statements at least once every twelve months.

·        Guarantees: banks will provide important and relevant information for prospective guarantors before they commit to guaranteeing someone else’s debt.

·        Code Monitoring:  The Code Compliance Monitoring Committee (CCMC) was established to ensure that banks that have adopted the Code of Banking Practice meet the standards of good practice set out in the Code.
The Committee investigates complaints that the Code has been breached. The Committee also monitors bank compliance with the Code through compliance activities such as mystery shopping, surveys and compliance visits. To read more visit the CCMC website.