CCMC 2010-2011 Annual Report
The Code Compliance Monitoring Committee has released its 2010-2011 Annual Report. Both the full report and a summary version are available on the CCMC’s website. Highlights noted in the Annual Report include:
- An overall increase in self-reported breaches, with a corresponding fall in the number of self-reported serious breaches. The increase in self-reported breaches is linked to some unusually high reporting of incidents by two banks due to changes in their monitoring and reporting systems during the year, and continual improvement in banks’ internal compliance programs.
- A total of 24 new cases were registered during the year, and 37 cases were closed. During the year, the CCMC issued 5 determinations, issued one Recommendation, and identified two Code breaches.
- A number of reviews and other broader compliance activities, including a review of compliance with the IDR obligations in clause 35 of the Code; a report on the visibility of, and access to, IDR and EDR schemes on bank websites; a review of one bank’s financial hardship program; and involvement in a student program, which researched the relationship between debt and mental health.
New website
Coinciding with the release of the Annual Report, the CCMC launched a new website in early November. The website includes all of CCMC’s reports and publications, provides a facility for online reporting of concerns about Code compliance, explains the CCMC’s role and function, and provides a list of Code subscribers. There is also a copy of the newly released Quarterly Bulletin.
If you are interested in the work of the CCMC, please subscribe to the website, and you will receive updates including media releases and reports.
Student review of Code Clause 14 (Basic Banking)
A review by Melbourne University Business Students found good compliance with Clause 14 which obliges banks to provide information about suitable accounts to people who are on low incomes or are otherwise disadvantaged, however it also found evidence that many eligible consumers had not taken up the accounts.
Reviews and inquiries planned for 2012
As well as the Annual Compliance Statement exercise, and responding to matters referred to it for investigation, the CCMC is planning work on compliance with the Code clauses on credit assessment and responsible lending; chargebacks, guarantees, and foreign exchange contracts.
CCMC Governance
CCMC is hopeful that a new ‘mandate’ document will be finalised by the Australian Bankers Association in the near future. While the CCMC works well, the final mandate will be important in ensuring CCMC’s effectiveness and independence for the future.
Queries or comments
As always, please don’t hesitate to contact me if you have any queries or comments about the CCMC’s operations.
Nicola Howell
Consumer and Small Business Representative
Code Compliance Monitoring Committee
Email: howell.nicola@gmail.com
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