Banking - Consumers' Federation of Australia

15 February , 2019

Going further with a financial counselling review

The Coalition Government has agreed to take action on all 76 recommendations contained in the Royal Commission’s Final Report and, in a number of important areas, is going further, including conducting an immediate review of financial counselling services. In his Final Report, Commissioner Hayne observed, “The desirability of predictable and stable funding for the legal…

6 February , 2019

Consumer groups respond to Royal Commission Final Report

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has now concluded. The Final Report and the Government’s response was released to the general public on Monday afternoon, providing a road map for law reform that should deliver improved standards in the finance sector. Many of the report’s 76 recommendations have been welcomed by consumer organisations including CHOICE, Consumer…

29 November , 2018

Banks’ compliance, monitoring and reporting deficient, report finds

Banks breached their Code of Banking Practice 10,123 times in 2017–18, according to a Banking Code Compliance Monitoring Committee (CCMC) report released today. The CCMC said these self-reported breaches of the Banking Code affected more than 3.4 million people, costing them more than $95 million. However, these impacts are likely to be significantly understated. The number…

26 November , 2018

Customer Owned Banking Code Compliance Committee releases Annual Report

The Customer Owned Banking Code Compliance Committee (the Committee) released its Annual Compliance Report today. A copy can be downloaded here. The Committee welcomes an increase in self reporting of breaches of the Customer Owned Banking Code of Practice (the Code). However, many of those who subscribe to the Code still have work to do to achieve good…

16 November , 2018

Assisting customers in financial difficulty

Banks have answered the call by customers in financial difficulty, but more will need to be done before 1 July 2019 to be ready for the ABA’s new and enhanced Code Australian banks have financial difficulty programs that, for the most part, meet the requirements under the 2013 Code of Banking Practice, according to inquiry…

3 October , 2018

Codes of Practice – Consumers benefit

The following is a guest post by The Code Compliance and Monitoring team, a separately operated and funded business unit of the Financial Ombudsman Service. Unfair treatment of customers by institutions has been under the spotlight at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Beyond the Commission, however, consumer protection…

28 June , 2018

Privacy and data security in customer owned banking institutions

The Customer Owned Banking Code Compliance Committee has recently conducted a review of customer owned banking institutions’ compliance with privacy obligations under Section D23 and Key Promise 8 of the Customer Owned Banking Code of Practice (the Code). A copy of the report can be found at here. Privacy own motion inquiry As Australia moves…

25 June , 2018

Fair Finance Day of Action

Australia’s leading consumer groups will join forces in Canberra today to call on the Federal Government to strengthen our laws to stop irresponsible, harmful lending practices in our financial services sector. “Irresponsible lending and crippling debt are having a real, devastating impact on Australians, putting people at risk of bankruptcy, homelessness and life-long debt,” says…

20 April , 2018

Jail time for corporate crooks needed to clean up finance sector

Today the Federal Government announced that there will be tougher penalties for corporate misconduct, and stronger powers for the corporate regulator ASIC. The Federal Government has agreed or agreed-in-principle to every recommendation made in the ASIC Enforcement Taskforce final report that was finalised in December 2017. Company directors will now face up to 10 years’…

3 April , 2018

Consumer Groups call for tougher penalties, ban on broker commissions in submissions to Royal Commission

Consumer Action Law Centre, CHOICE and NSW Legal Aid today published submissions in response to the first round of hearings before the Royal Commission into Misconduct in the Banking, Superannuation and Finance Sector on consumer lending and add-on insurance. Consumer Action Law Centre (Consumer Action) argues in its submission that directors of the big banks may…

10 March , 2018

‘Rank the Banks’ survey results released

The financial counselling sector has today released its third annual Rank the Banks survey and it contains both bouquets and brickbats. Nearly 300 financial counsellors were surveyed for their views on how the banking industry is responding to customers in financial hardship. Financial counsellors were also asked for the first time to rank the hardship practices of…

15 February , 2018

Credit card reforms long overdue

On 15th February, a package of reforms to improve credit card lending and marketing practices passed Federal Parliament. Consumer advocacy groups Consumer Action Law Centre and CHOICE are relieved to see the important reforms finally enacted after a long consultation process. The reforms will: require affordability assessments to be based on a person’s ability to…