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SOMETIMES
WE MIGHT ENTER INTO A CREDIT CONTRACT, ONLY TO FIND THAT
WE NEED TO REVERSE THE TRANSACTION OR CANCEL THE AGREEMENT
ALTOGETHER. SO, WHAT CAN WE DO IF WE NEED TO MAKE A CHANGE?
IF YOU'VE ALREADY SIGNED THE CONTRACT
Cancelling or reversing credit arrangements
isn't always easy, and your potential to do so will depend
on the credit provider and the terms of the credit contract.
Once you've entered into the contract, in most cases you
are legally bound by that contract.
Most credit contracts
are separate from the contract to buy the goods. For example,
if you've signed the agreement but then decide you no
longer want the goods, you may not simply be able to cancel
the contract. |
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IF
YOUR CIRCUMSTANCES HAVE CHANGED
If your circumstances have changed
(for example, due to illness or unemployment), and your credit contract
is covered by the Consumer Credit Code (see page 7 to find out more),
you may be eligible to have your repayment schedule adjusted accordingly
due to temporary hardship. Note you will still ultimately be liable
to pay off the loan, even if it is with an adjusted repayment schedule.
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HAS
YOUR CREDIT CARD BEEN LOST OR STOLEN?
If your credit card is lost or stolen, notify
your bank immediately. This will enable your bank to put a stop on
your card straight away so that no-one else can use it and get access
to your money. Most banks have a 24-hour phone number for reporting
lost cards - it's a good idea to keep a record of this number handy
at all times, just in case. If you don't know the number, ask your
bank. |
EARLY
TERMINATION OF A LOAN
If you decide to pay out a loan earlier than
the term originally stated in your loan agreement, you may incur certain
fees and charges for doing so. While in some cases the interest you
save by paying off the loan early may outweigh those fees and charges,
in other cases it won't. Check what fees and charges apply to early
termination of your credit contract before you terminate, and make
sure the interest savings will definitely outweigh the penalty costs. |
CANCELLING
DIRECT DEBITS
If you are cancelling a direct debit request,
what needs to be done, depends on whether the account to which the
direct debit is made, is your credit card account or your transaction
account. |
DIRECT
DEBITS FROM CREDIT CARD ACCOUNTS
If you have given a merchant (retailer or a
biller) the right to debit your credit card account, you need to cancel
the direct debit request with the merchant. Card scheme rules do not
provide for your bank or credit card issuer to process your request
to cancel the direct debit from your credit card.
It is also a good
idea to check that the cancellation has been successful and the debit
has stopped. When you receive your next bank or credit card statement,
read it carefully. If the transaction has been debited, contact your
bank straight away and dispute the transaction.
If the debit is unauthorised
(you have told the merchant it must stop yet it continues), then your
bank will seek to chargeback the transaction to the merchant's bank.
You need to be vigilant, check your regular credit card statement
and if the debit continues, seek a chargeback each time. Of course,
cancelling a direct debit does not mean that you no longer have to
pay a bill. If you owe money to a business, you may need to discuss
an alternative form of payment before you cancel your direct debit.
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DIRECT
DEBITS FROM TRANSACTION ACCOUNTS
You can cancel a direct debit from an account
(not a credit card account) either by notice to the merchant and/or
to the bank. If your bank has adopted the revised Code of Banking
Practice, and the direct debit request applies to your account, then
the bank will promptly process this direct debit cancellation request,
without suggesting that you first raise the cancellation request directly
with the merchant. However, in agreeing to process your cancellation
request, your bank may suggest that you also contact the merchant.
To check if your bank has adopted the Code, please check the Australian
Bankers' Association (ABA) website: www.bankers.asn.au.
Bear in mind, that it can take a few working days for a cancellation
to become effective. If you try to cancel one day before a payment
is due, it might take longer for this to go through the system. Many
businesses require a minimum of three working days to cancel a direct
debit, so check with the business to see how much notice you will
need to give them.
You need to be vigilant, check your regular account statement and
if the debit continues, contact your bank and complain. |
CHARGING
BACK A CREDIT CARD TRANSACTION
If
you find a charge on your credit card statement that you do not agree
with (unauthorised or irregular), notify your credit card provider
immediately. You may dispute the transaction when:
- mail order goods fail to arrive, or arrive broken or faulty
- you get charged for a transaction twice, or for a higher amount
than you authorised
-
you cancel a direct debit authority but the merchant is still directly
debiting your account
- your credit card is stolen and is being used illegally to buy things
* either by forging your signature or by buying things over the phone
or online
Usually, in these circumstances, your credit card provider will reverse
the transaction immediately. The provider then seeks a chargeback
from the merchant's bank. Unless the merchant can establish that you,
or a secondary cardholder, did in fact receive the goods or authorise
the transaction, the reversal will remain in place.
Time limits do
apply to reversing transactions, so always check your credit card
statements carefully and take immediate action if you cannot account
for a transaction that you see.
Before you request a reversal, double
check that the transaction can't be matched to one of your credit
receipts, as some merchants appear under a different name when they
are listed on your credit statements. For example, you may have purchased
a rake from Greg's Garden Gadgets, but the transaction may appear
on your credit statement under a different name, such as G Smith Trading
Co. |
KEEP
GOOD RECORDS AND COMPARE YOUR NOTES
Always keep receipts of all your credit
card transactions and always read your credit card statements
carefully. If you see a transaction you can't account for,
see if the amount matches one of your receipts - it could
be that the name of the shop you visited isn't the same as
the name it is listed under when they appear on your statement.
If you've double checked and you still think there is a problem,
notify your credit |
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MAKING
AN EFFECTIVE COMPLAINT
Clarify the problem: clearly think through what's bothering
you and why before you contact your bank. Write it down if it
helps you to think it through more logically.
Be prepared: get organised before you contact your bank.
Have your customer reference number, account number or card
number handy, as well as other relevant details - this will
help the person at the bank deal with your problem more quickly.
Stay calm: it's natural to feel angry, embarrassed or upset
when things have gone wrong, but you will be better able to
explain your problem clearly and logically if you can stay calm
while talking through the issue.
Keep a record: document any discussions or correspondence
you have with your bank, including times and dates, names of
contact people, and advice or information received. These records
will be useful if you are unable to resolve the problem and
need to proceed further through the complaints process. |
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RESOLVING
PROBLEMS WITH YOUR BANK
Sometimes, things can go wrong with the banking
products and services you receive. In accordance with the law, you
have the right to complain if you are not happy about any aspect of
a financial product or service. Your bank is also required to have
a procedure in place for dealing with your complaint.
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The
most effective way to get your complaint resolved is to follow this
three-step procedure:
 CONTACT
YOUR BANK AND TELL THEM ABOUT YOUR PROBLEM
Your bank should be your first port of call. Once you tell
your bank that you have a problem they can take the necessary
steps to fix it. A customer service representative should
be able to assist when you first contact the bank. If
your bank can't resolve your problem then and there, the
bank will take the following steps:
a) let you know who is handling your complaint;
b) keep you informed
of what is happening;
c) aim to resolve your complaint within a specified time
frame.
Fortunately, most complaints can be quickly sorted out
just by talking to your bank. However, in some cases it
may be necessary to take your complaint further. If you
have raised the problem with your bank but they have been
unable to help you, you may need to go to Step 2. |
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 MAKE
A FORMAL COMPLAINT TO THE BANK
Some
banks have customer advocates who can make a free and
independent assessment of your complaint and then help
achieve a quick and unbiased solution. If you still don't
think your complaint has been resolved to your satisfaction,
and you'd like an independent review of the complaint
and any responses you've received to date, go to Step
3. |
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 MAKE
A COMPLAINT TO THE OMBUDSMAN
The
Banking and Financial Services Ombudsman is an independent
complaints scheme that is free for consumers. Refer your
complaint to:
The Banking and Financial Services Ombudsman
GPO Box 3
Melbourne, Vic 3001
You can also telephone the Ombudsman's office on 1300
780 808, or visit www.bfso.org.au
for more information. |
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RESOLVING
PROBLEMS WITH OTHER CREDIT PROVIDERS
If you have any dispute with your credit provider,
or if you feel one of the requirements under the Consumer Credit Code
may have been broken and you have not been able to resolve it with
them yourself, you can raise the matter with the Consumer Affairs
or Fair Trading agency in your state or territory. Alternatively,
contact the Banking and Financial Services Ombudsman on the number
provided above, and they will be able to direct you to an appropriate
complaints resolution scheme that will be best able to assist with
your complaint. |
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