The Australian Banking Association has today partnered with Business SA to brief the local business community and stakeholders on the rights and protections contained in the new Banking Code of Practice.
In force since July 1 last year, the new ASIC-approved Banking Code of Practice contains a big step up in protections for customers.
Under the new Banking Code of Practice, banks no longer:
- Offer unsolicited credit card limit increases
- Charge commissions on Lenders Mortgage Insurance
- Sell insurance with credit cards and personal loans at the point of sale.
Under the new Code banks must:
- Offer low-fee or no-fee accounts to low income customers
- Have a 3 day grace period on all guarantees to give guarantors enough time to make sure it's the right option for them
- Actively promote low-fee or no-fee accounts to low income customers
- Provide reminders when introductory offers on credit cards end
- Provide simpler and fairer loan contracts for small business using plain English that avoids legal jargon
- Provide customers a list of direct debits and recurring payments to make it easier to switch banks.
"Banks have listened to community concerns and released a new rule book for banks, the Banking Code of Practice, which is a major step up in protections for customers."
Anna Bligh
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