Smarter Banking - Make the most of your money

Important Notice

This booklet gives information of a general nature and is not intended to be relied on by readers as advice in any particular matter.

You should consider consulting a financial adviser regarding how this information may apply to your own circumstances.

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WHERE CAN I GO FOR MORE INFO?

SPEAKING TO YOUR BANK

Your bank can be a good source of information, not only about banking products and services, but also about ways to manage your money effectively and take control of your finances.

Start by checking what resources are available on your bank’s website. You may find many of your questions are answered on the FAQ page of your bank’s website. You can also phone your bank or go to a bank branch and speak to the staff there.

HOW DO I RESOLVE A PROBLEM WITH MY BANK?

Sometimes, you may have a problem with a product or service you receive from your bank. Under the Code of Banking Practice, your bank must have a procedure in place to deal with complaints. Your first move should be to contact your bank and see if they can deal with your complaint. In many cases, the dispute will be resolved internally by the bank with no further action required.

However, if your bank doesn’t resolve the dispute to your satisfaction, you can take your complaint to the Financial Ombudsman Service (FOS), which is an external dispute resolution scheme.

Use the following steps to try to resolve a problem with your bank:

Step 1: Contact your bank and tell them about your problem

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, it 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.

Fortunately, most complaints can be quickly sorted out at this stage. If this is not the case, you may need to go to step 2.

Step 2: Make a formal complaint to the bank

Your bank will have a process for handling formal complaints. There may be a Customer Relations Manager or Complaints Manager who will investigate the complaint. The bank will notify you of the name and contact details of this person. Some banks have Customer Advocates who can make an independent assessment of your complaint and help achieve a quick and unbiased solution.

If the dispute cannot be resolved to your satisfaction internally, your next move is to take your complaint to an external dispute resolution scheme for independent review.

Step 3: Make a complaint to the Ombudsman

The Financial Ombudsman Service (FOS) is an independent complaints scheme that is free for consumers. t provides an accessible way of resolving disputes, without having to go to court. The decision of the FOS is binding on the bank. Only go to the FOS after you have tried to resolve things with your bank, as the FOS will not deal with your complaint unless you have first given the bank the chance to put things right.

Refer your complaint to:
The Financial Ombudsman Service
GPO Box 3, Melbourne, Victoria 3001
Telephone: 1300 780 808
Website: www.fos.org.au

Did you know?

Financial counsellors provide information to consumers in financial difficulty. A thorough assessment of an individual or family’s situation is followed by identifying what can be done to address the financial problems, and the possible advantages and disadvantages of those choices. Financial counsellors are based in community agencies and are funded largely by State or Federal Governments. Government funded financial counselling services are free and confidential – they are different to fee for service debt counsellors.

TIP

Talk to your bank if you have a problem

If you’ve got a problem with one of your accounts or a financial matter, or if you’ve got a complaint, talk to your bank first. If you end up in difficulty with paying fees, meeting credit card payments or loan repayments, contact your bank to see if they can help with a new payment plan. Most problems can be quickly resolved if you start by letting your bank know what they are.

A fact sheet “Dealing with Debt – how banks can help if you are experiencing financial difficulty” can be found at the ABA website www.bankers.asn.au

HOW DO BANKS HELP IF I AM EXPERIENCING FINANCIAL DIFFICULTIES?

Your bank will try to come to a workable solution to help you through a period of financial difficulty. This can involve working out what assets you’ve got available, working out what you need to repay and understanding your income and spending in order to agree to a reasonable plan for repaying the debt.

In some cases, this discussion may take place through specialist teams. They will take time to understand your situation. They can provide you with personal assistance and information to find the best possible way to help you control and to manage your financial obligations with the bank now and in the future.

Each person’s circumstances are individual and different banks will have different procedures.

Generally your bank will want to:

Help you find solutions if you’ve missed monthly payments on your credit card.
Discuss possible ways to assist you if you’re unable to make contracted repayments on a home loan or personal loan, such as re-structuring your debt so that you can repay it over an extended period.
Discuss alternative banking arrangements that may be more suitable for your circumstances, such as identify more suitable accounts for low-income earners and pensioners.

Banks treat each case individually. It’s important that you keep in touch with your bank throughout the repayment process, especially if your circumstances change.

SPEAKING TO A FINANCIAL COUNSELLOR

There are financial counselling services available in every State and Territory that provide a free, independent and confidential service.

A financial counsellor can help you get a clear picture of your financial situation and develop strategies to get you back in control of your money – whether it’s creating effective budgets, working out manageable repayment plans, working with your creditors or addressing a financial crisis caused by a problem with health, unemployment, family break-up or gambling.

The Australian Financial Counselling and Credit Reform Association (AFCCRA) website contains a list of organisations in each State or Territory that will provide a financial counselling or credit advice service or refer you to the appropriate service. For more information, go to www.afccra.org/counselling.htm

SPEAKING TO CENTRELINK

Centrelink’s Financial Information Service (FIS) is an education and information service available to anyone. The service is provided by specialist Centrelink officers and is independent, free and confidential.

While the FIS does not provide financial advice, FIS Officers can help you to make informed financial decisions. The FIS can also help you to understand the possible consequences of your financial decisions.

The FIS runs a program of financial education seminars, and also produces a range of fact sheets with information about specific financial issues and savings planners to help you budget for savings.

To speak to a FIS Officer, or to request booklets and other information, call Centrelink on 13 2300 or visit the Centrelink website www.centrelink.gov.au.

To find out more about seminars or to make a seminar booking, call 13 6357 or email fis.seminar.bookings@centrelink.gov.au

WHO ELSE CAN I CALL?

The Australian Securities and Investments Commission (ASIC) has an infoline and a consumer website.

To contact ASIC call: 1300 300 630.

The FIDO website contains information for consumers about financial products, such as financial tips and safety checks as well as information about making a complaint, including a booklet you can download titled ‘You can complain’. For more information, go to www.fido.gov.au

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