The Australian Bankers’ Association (ABA) has released an revised Code of Banking Practice, which it says provides improved rights for customers and sets out a binding minimum standard of service.

“The Code of Banking Practice sets out the commitment banks have made to their customers, whether individuals, families or small businesses. The Code sets the standards for fairness, transparency, behaviour and accountability that customers can expect from their banks,” Steven Münchenberg, Chief Executive of the ABA, said.

“Customers want to be confident that their bank will do the right thing by them, and the Code is an important element in giving the assurance that we will. The Code gives customers additional rights, on top of those in the law, and provides straightforward ways for customers to complain if they feel their bank has not met its Code obligations.”

Mr Münchenberg said “We have added new provisions to the Code, especially to provide additional support for those in the community who need it most.”

Significant changes to the Code include:

  • New and stronger financial hardship provisions that mean banks will need to be more alert to people who may be in financial difficulty in meeting their repayments, respond promptly to requests for assistance, and ensure bank staff are well trained in understanding the bank’s financial hardship commitments;
  • A commitment not to combine accounts or assign debt when a bank is actively considering whether a customer is in financial difficulty;
  • A commitment to provide information about no or low fee accounts to customers if the bank becomes aware the customer has a Commonwealth concession card, such as a Seniors Health Card, Health Care Card or Pensioner Concession Card;
  • Clarification that chargeback rights exist for disputed transactions on relevant debit cards, including debits under recurrent payment arrangements;
  • New provisions for customers in remote Indigenous communities, including making relevant information accessible, providing assistance to customers to meet identification requirements and appropriately training relevant staff to be culturally aware;
  • A commitment that banks will only sell debts to third parties that agree to comply with the ‘Debt Collection Guideline: for Collectors and Creditors’; and
  • A commitment to send customers with a mortgage, on a primary place of residence or residential investment property, an annual reminder about their insurance obligations.