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Australian Banking Association - Banking Code of Practice Published September 2018 Setting the standards of practice for banks, their staff and their representatives Commences 1 July 2019 The Australian Banking Association has the active participation of member banks in AustraliaAustralian Banking Association: Post PO Box H218, Australia Square NSW 1215 Telephone 02 8298 0417Web ausbanking.org.auThe new Banking Code of Practice sets a new standard of customer service for Australia’s banks. The new Code is part of a significant reform agenda to improve banking services to better meet community standards and expectations. Australians, along with businesses large and small, entrust their financial security and wellbeing to one or more of the banks who are signatory to this Code. In signing this important document, these banks make a commitment to you, their customers, to ethical behaviour, to fair and responsible lending practices and to the protection of your privacy. In a world where technology is rapidly changing the banking experience, making it more convenient, more mobile and more transparent than ever before, strong, ethical banks remains critical to customer trust and confidence. With this new Banking Code of Practice, banks take on a stronger responsibility to deliver on that expectation. In addition to a community and industry wide expectation, the high standards of behaviour and service set out in this Code are enforceable rights for customers. In an Australian first, this new Banking Code of Practice has been considered and approved by the Australian Securities and Investments Commission under their industry code approval powers. I look forward to the Banking Code of Practice improving the banking experience for all customers. Anna Bligh, Chief Executive Officer, Australian Banking Association1 2 Our role in society Australia’s banks play an important role in contributing to the prosperity of the nation’s economy, for the benefit of all Australians. Our customers count on us to provide them with a safe place to deposit money, to offer a wide range of options to access banking and financial services, and to help businesses start and grow. We understand that trust is critical to our relationships with customers and that for us to earn that trust, we need to do the right thing. We acknowledge that our responsibilities to customers, investors, employees and the broader community must be carefully balanced. Customers, investors, employees and communities expect our behaviour to meet high ethical standards, backed up by the right internal culture and practices. We are committed to continuously improving and being accountable. In fulfilling these responsibilities, we will continue to contribute to the stability, strength and prosperity of Australia’s financial system and society. To do this, we will look to continually improve our banking services and how we engage with our customers and communities. The Banking Code of Practice (the Code) is one of the ways we strive to achieve these goals.3 What is the Banking Code of Practice? The Banking Code of Practice (the Code) sets out the standards of practice and service in the Australian banking industry for individual and small business customers, and their guarantors . This version of the Code takes effect from 1 July 2019. The Code provides safeguards and protections not set out in the law. It complements the law and, in some areas, sets higher standards than the law. The Code was first introduced in 1993. Since then, it has undergone multiple improvements — responding to emerging issues and the changing needs of our customers — to ensure it remains relevant. This version of the Code has been developed in close consultation with key stakeholders including consumer groups, government, regulators and the banking industry. It replaces the previous version, The Code of Banking Practice 2013.Over time, many of the standards embedded in the Code have been included in the law. By promoting best practice, the Code has led to higher standards in the banking and financial services industry. 4 The Code is underpinned by our Statement of Guiding Principles These principles — shared by all member banks — provide an ethical, customer-oriented and sustainable framework. They guide us in our decision-making when performing our work and serving our customers. 1. Trust and confidence 2. Integrity 3. Service 4. Transparency and accountability 5 6 Australian Banking Association Banking Code of PracticeSetting standards of conduct for banks, their staff and their representatives. Each bank that has adopted the Code will comply by 1 July 2019. It is a condition of ABA membership that member banks with a retail presence in Australia are required to sign up to the Code. Banks that have adopted the Code are listed on the ABA website: ausbanking.org.au/code7 Table of contents Chapter Page Part 1 How the Code works 11 1. Who the Code applies to 12 2. Publication and review of the Code 13 Part 2 Your banking relationship 14 3. Our compliance with this Code 15 4. Trained and competent staff 15 5. Protecting confidentiality 15 6. Compliance with laws 15 7. Closing a branch 15 Part 3 Opening an account and using our banking services 16 8. Providing you with information 17 9. Communication between us and you 17 10. Responding to your request for information 17 11. What information we will give you 17 12. Acquiring a new product or service 19 Part 4 Inclusive and accessible banking 20 13. Being inclusive and accessible 21 14. Taking extra care with customers who may be vulnerable 22 15. Banking services for people with a low income 22 16. Basic accounts or low or no fee accounts 23 Part 5 When you apply for a loan 24 17. A responsible approach to lending 25 18. Our approach to selling consumer credit insurance (CCI) 26 19. Lenders mortgage insurance 27 Part 6 Lending to small business 28 20. Helping a small business when it applies for a loan 29 21. When will we not enforce a loan against a small business? 29 22. Specific events of non-monetary defaults 29 23. When we decide not to extend a loan 31 24. When we appoint property valuers, investigative accountants and insolvency practitioners 31 8 Chapter Page Part 7 Guaranteeing a loan 32 25. Limiting liability under the guarantee 33 26. What we will tell and give you 33 27. Signing your guarantee 35 28. Withdrawing or ending your guarantee 35 29. Enforcing our rights under the guarantee 36 Part 8 Managing your account 38 30. Keeping your accounts safe and secure 39 31. Statements we will send you 39 32. Cost of transaction service fees 39 33. Managing a credit card 40 34. Direct debits and recurring payments 41 35. Joint Accounts 41 36. Closing any of your banking services 41 37. Your right to copies of certain documents 42 38. When we change our arrangements with you 43 Part 9 When things go wrong 44 39. Contact us if you are experiencing financial difficulty 45 40. We may contact you if you are experiencing financial difficulty 46 41. We will try to help you if you are experiencing financial difficulty 46 42. When you are in default 48 43. When we are recovering a debt 48 44. Combining your accounts 49 45. Helping with deceased estates 50 Part 10 Resolving your complaint 52 46. Our Customer Advocate 53 47. If you have a complaint about us 53 48. How we handle your complaint 53 49. Code monitoring, complaints and sanctions 54 Acronyms 56 Definitions 57 Transitional period 60 9 10 PART 1 How the Code works11 CHAPTER 1 Who the Code applies to 1. The Code applies to you, as defined in the table below:
The Code forms part of our banking services and guarantees 2. Our written terms and conditions for all banking services and guarantees to which the Code applies will include a statement to the effect that the relevant provisions of the Code apply to the banking service or guarantee. 3. The terms and conditions need not set out those provisions. CHAPTER 2 Publication and review of the Code How the Code is to be publicised and made available 4. We will promote the Code. 5. We will ensure the Code is available and accessible in different ways, including in hard copy and electronically. If you want a hard copy you can ask us in a branch or over the phone and we will give or send you one for free. Three yearly reviews of the Code 6. The ABA will arrange for the Code to be independently reviewed at least every three years from the date this Code comes into effect. 7. When reviewing the Code we will also consult with consumer representatives, small business organisations and other stakeholders. 13 PART 2 Your banking relationship 14 CHAPTER 3 Our compliance with the Code Our commitments to the Code 8. We will honour the commitments we make to you in the Code. CHAPTER 4 Trained and competent staff Our staff and representatives will be trained and competent — including about the Code 9. We will make sure that our staff and our representatives are trained so that they:
How our staff will engage with you 10. We will engage with you in a fair, reasonable and ethical manner. CHAPTER 5 Protecting confidentiality We will protect your confidentiality 11. We will meet our general duties under law to protect your confidentiality. 12. We will also have our own privacy policies available on our website. CHAPTER 6 Compliance with laws How we will comply with the law and the Code 13. If the Code imposes an obligation on us that is in addition to obligations applying under a relevant law, then we will comply with the Code unless doing so would lead us to breach the law. CHAPTER 7 Closing a branch Our commitments when closing a branch 14. We will comply with the ABA protocol when closing a branch. The protocol outlines our commitment to provide banking services to personal, and small business, customers in remote, rural and regional areas. This protocol is available at: ausbanking.org.au/industry-standardsCHAPTER 8 Providing you with information We will give you clear information 15. We will give you clear information about our products and services so you can make an informed decision about which product or service is suitable for you. 16. We may give you advice, or recommend that you seek advice. CHAPTER 9 Communication between us and you How we will communicate with you 17. We will communicate with you in a timely manner and we will give you information that is useful and clear. 18. Anything that we are required to give to you under this Code may be given to you:
However, if the Code specifies the method of communication, then we will comply with that method. 19. Where this Code requires us to communicate in writing, this includes electronic communications. 20. All communication under this Code will be consistent with our obligations under the law or other applicable codes. 21. Our terms and conditions will be distinguishable from our marketing material. CHAPTER 10 Responding to your request for information How we will respond to your request for information 22. We will answer your questions about our banking services. 23. If you ask us for advice on any of our banking services, then we will:
What information we will give you Terms and Conditions, Fees and Charges 24. If you are entering into a contract for a banking service with us, then we will give you our:
We will do this before, or when, the contract is made. This information may be in separate documents. 25. The documents provided in paragraph 24 will clearly set out:
Specific information 26. If the following information applies to your banking service, we will give you that information in, or with, our contract:
Term deposits 27. Our terms and conditions for a term deposit account will contain the following specific information:
Cheque accounts 28. Our terms and conditions for an account with cheque access will contain the following specific information:
Exchange rates and commissions 29. If we give you a foreign exchange service (other than by credit card, debit card, or travellers’ cheque), then we will give you the following information:
Insuring your property 30. If you have a loan and we have a security (for example, a mortgage) over your primary place of residence or a residential investment property you own, then we will remind you of your obligations to insure the property. We will remind you of that at least once a year. Our reminder will include:
CHAPTER 12 Acquiring a new product or service We will ensure we have your agreement about fees 31. If we charge a fee for you to acquire a new product or service, then we will make CHAPTER 13 Being inclusive and accessible We believe in inclusive banking services 32. We are committed to providing banking services which are inclusive of all people including:
33. We will train our staff to treat our diverse and vulnerable customers with sensitivity, respect and compassion. We are committed to providing banking services which are accessible 34. We are committed to improving the accessibility of our banking services for people with a disability and older customers. We will take reasonable measures to enhance their access to those services. When providing banking services to Indigenous customers 35. If you tell us you are an Indigenous customer, we will take reasonable steps to make information about our banking services accessible to you. We will also:
When providing banking services to remote customers 36. We will take reasonable steps to make information about our banking services accessible to customers in remote communities, including remote Indigenous communities. 37. We will provide cultural awareness training to staff who regularly assist customers in remote CHAPTER 14 Taking extra care with customers who may be vulnerable We will take extra care with vulnerable customers 38. We are committed to taking extra care with vulnerable customers including those who are experiencing:
We may become aware of your vulnerability only if you tell us about it. 39. We will train our staff to act with sensitivity, respect and compassion if you appear to be in a vulnerable situation. 40. If you tell us about your personal or financial circumstance, we will work with you to identify a suitable way for you to access and undertake your banking. 41. When we are providing a banking service to vulnerable customers we will:
CHAPTER 15 Banking services for people with a low income When providing transaction banking services to low income earners 42. If you are an individual and you tell us that you are a low income earner, we will give you:
43. Our obligation in the previous paragraph applies to you regardless of whether or not you are our customer. We may become aware if you are a low income earner only if you tell us about it. If you receive a Commonwealth pension or concession, we will give you information about our low or no fee accounts 44. If you apply for a new transaction account, we will ask you if you have any of the following government cards. If you tell us that you have one of these cards, then we will give you information about any banking services we offer that have low or no standard fees and charges (see Chapter 16):
CHAPTER 16 Basic accounts or low or no fee accounts We will raise awareness of basic, low or no fee accounts and give you information about them 45. We will raise awareness of our affordable banking products and services such as basic, low, or no fee accounts, including that you may be eligible if you have a government concession card. 46. We will give you information that is easily accessible about accounts that have low, or no, standard fees and charges. 47. We will offer you a basic, low, or no fee account if you ask for one and we determine that you are eligible for one. Training for staff about customers eligible for basic, low, or no, fee accounts 48. We will train our staff to help them to recognise a customer, or potential customer that may qualify for a basic, low, or no fee account. CHAPTER 17 A responsible approach to lending Lending to individuals and small businesses 49. If we are considering providing you with a new loan, or an increase in a loan limit, we will exercise the care and skill of a diligent and prudent banker. 50. If you are an individual customer, that is not a business, we will do this by complying with the law. 51. If you are a small business, when assessing whether you can repay the loan we will do so by considering the appropriate circumstances reasonably known to us about:
Where reasonable to do so, we may rely on the resources of third parties available to you, provided that the third party has a connection to you (that is, to the small business). For example where the third party is a related entity of yours (including but not limited to your directors, shareholders, trustees, beneficiaries or related body corporates), or is a partner, joint venturer, or guarantor of yours. 52. We also owe an obligation to any guarantor of the loan to comply with the above paragraph in assessing the borrower‘s ability to repay the loan. Lending to co-borrowers 53. If you are an individual applying for a loan, or an increase to a loan limit, paragraphs 54 to 56 apply to you. 54. If, on the information that you have provided to us in the course of applying for this loan, you will not receive a substantial benefit from the loan, we will not approve you as a co-borrower unless we:
55. A substantial benefit includes where:
56. You may end your liability under the loan by giving us a written request to do so in the following circumstances:
57. Paragraphs 53 to 56 do not apply to borrowers who are trustees, companies, directors of co-borrower companies or partners in a partnership or joint-venture arrangement. We will tell you about our suitability assessment for a loan 58. If we approve your loan, and it is regulated under the National Consumer Credit Protection Act 2009, we will let you know that you can obtain our assessment about whether it is not unsuitable for you. 59. If you are a guarantor, we will let you know that you can also request a copy free of charge. We will assess your ability to repay a credit card within a five year period 60. When you apply for a new consumer credit card or credit limit increase, we will assess your ability to repay the amount of the credit card limit within a five year period. Setting a credit card limit when you apply 61. You can let us know what your preferred credit card limit is and we will not give you a limit that is more than what you requested. Transactions may be processed which nevertheless cause you to exceed your limit. CHAPTER 18 Our approach to selling consumer credit insurance (CCI) Our approach to selling CCI for credit cards and loans 62. If we offer CCI, then we will give you clear information that enables you to make an informed decision — including (to the extent we can):
63. Before we enter the contract with you, we will ensure we have your express consent to acquire the product. Separation of application process for CCI for credit cards and loans sold in digital channels 64. We will refer to the availability of CCI only after you have completed the digital application for a credit card or loan. 65. We will let you know that whether you purchase CCI or not has no bearing on whether we approve you for a credit card or loan. 66. We will use clear disclosure for CCI on credit cards and loans to enable customers, as they navigate through the digital experience, to better understand this type of insurance. This will be through:
Deferred sales period for CCI for credit cards and personal loans sold in branches or over the phone 67. If we offer CCI for credit cards and personal loans through a branch or over the phone, then we will not offer that product to you until at least four days after you have applied for the credit product. This is known as a ‘deferred sales period’. 68. We can still provide factual information on CCI for you to consider during the deferred sales period. CHAPTER 19 Lenders mortgage insurance Lenders mortgage insurance contracts 69. We may require you to pay for lenders mortgage insurance in connection with a loan you have. If we do this, we will give you a fact sheet about lenders mortgage insurance. The fact sheet will contain information outlining the key policy features. 70. We will not charge you more for lenders mortgage insurance than the actual cost we incur for that policy. We will not receive a commission on your lenders mortgage insurance policy. 71. Depending on the terms of the lenders mortgage insurance policy, if your loan is repaid or refinanced before the end of the policy, then you may be entitled to a refund of part of the fee or charge you have paid. We will explain this to you in the fact sheet. CHAPTER 20 Helping a small business when it applies for a loan What we tell a small business when they apply for a loan 72. We will tell a small business how to apply for a loan, including the following:
73. Before you accept a loan offer, we will give you a plain English document clearly setting out the key general terms and conditions of the loan. This is in addition to the disclosures required under Part 3 of the Code, and may be a separate document or part of the loan document. 74. If we decide not to approve a loan to a small business we will, if appropriate, tell the small business the general reason why. CHAPTER 21 When will we not enforce a loan against a small business? How much notice we give a small business before enforcing a loan? 75. If you are a small business and in default under your loan, we will give you 30 days’ notice before we either require you to repay the loan in full, or take enforcement proceedings. 76. If you remedy the default during the 30 day period, and no default of the same type has arisen during that period, we will not require full repayment or take enforcement proceedings. 77. We may give you a shorter notice period, or no notice period, if:
78. If you have an overdraft or on-demand facility, we may not be required to give you any notice when we require repayment. CHAPTER 22 Specific events of non-monetary defaults This chapter applies to standard form small business loans. In this chapter, ‘guarantor’ means any guarantor of a small business, not limited to a guarantor who is an individual. Loan terms and conditions 79. Our loan terms and conditions will specify how and when we will not enforce a loan against a small business for non-monetary defaults. When we will not enforce a loan against a small business for non-monetary defaults 80. If you are a small business and you have met all your loan payment terms, we will not take default based action against you unless:
What we will do before we take default based action Remedying your non-monetary default 81. We will allow a reasonable time for you to remedy your non-monetary default, where it is able to be remedied and notify you of this time period. 82. Paragraph 81 may not apply where, based on our reasonable opinion, it is necessary for us to act to manage an immediate risk. Material impact 83. We will only act on a specific event of non-monetary default identified in paragraph 80, if the event by its nature is material, or we reasonably consider the event has had, or is likely to have, a material impact on:
General material adverse change clauses 84. We will not include a general material adverse change clause as an event of default in any standard form small business lending contract. Specialised small business loans 85. For the following types of small business standard form loans, we may include financial indicator covenants or special covenants tailored to the particular nature of these loans as a trigger for default based action:
CHAPTER 23 When we decide not to extend a loan How much notice will we give a small business before the end of a loan 86. If you are a small business and you are not in default, and the principal owing on your loan is not due to be fully repaid at the end of its scheduled term by regular periodic repayments, we will give you notice of our decision not to extend your loan, at least 3 months before you need to repay your loan in full. 87. If we decide to extend or refinance your loan, we are not required to do so on the same terms. CHAPTER 24 When we appoint external property valuers, investigative accountants and insolvency practitioners When using external property valuers we will be fair and transparent 88. Our processes in relation to external expert valuations will be fair and transparent. 89. Our communication will be clear and we will explain the purpose of the valuation to the customer. 90. We will provide copies of property valuations and valuer instructions (except when enforcement action has already commenced). 91. We will only appoint appropriately qualified and experienced valuers who are members of professional organisations which abide by a similar code of practice. Appointing investigating accountants and insolvency practitioners (including voluntary administrators) 92. We will act fairly when using investigative accountants and insolvency practitioners, and will ethically manage potential conflicts of interest when appointing receivers who have been investigating accountants for a small business, for example:
When this part applies 93. If you are an individual who gives a guarantee and/or indemnity to secure a loan that we give to another individual or small business, and this Code applies to the loan, then this part of the Code applies to your guarantee and/or indemnity. CHAPTER 25 Limiting liability under the guarantee Before accepting a guarantee 94. Your guarantee will be limited to:
During the guarantee 95. You may write to us to limit, or further limit the liabilities you have guaranteed under your guarantee. However, we do not have to accept your request if:
we would be unable to preserve the current value of an asset which is security for the loan without making further advances. CHAPTER 26 What we will tell and give you Before accepting a guarantee Notice to you 96. The terms and conditions of the guarantee will contain a prominent notice that:
97. We will tell you:
This paragraph does not apply if you are a commercial asset financing guarantor, sole director guarantor or trustee guarantor. Required warning notice 98. We will ensure that a warning notice appears directly above the place where you sign the guarantee. The warning notice will be substantially in the form required by section 55 of the National Credit Code, and detailed in Form 8 of the National Consumer Credit Protection Regulations 2010 and consistent with this Code. Guarantee documents 99. We will give you a copy of the following documents in relation to the borrower:
This paragraph does not apply if you are a commercial asset financing guarantor, sole director guarantor or trustee guarantor. What we will tell you if you are a director guarantor 100. If you are a director guarantor (other than a sole director guarantor) we will tell you that you have the right to receive the documents in paragraphs 96 to 99, and that these documents contain important information that may affect your decision to give a guarantee. You may choose not to receive some or all of the documents, and we will not influence your choice. During the guarantee 101. We will give you the following information, about a borrower’s deteriorating financial position as it relates to the loan you guarantee, within 14 days’ of the relevant event:
102 If you ask us to, we will give you additional copies of any information we have given you – we will do so within 30 days. 103. However, we do not need give you those copies if we have given you the information you requested within three months before your request. Paragraphs 102 and 103, do not apply if you are a commercial asset financing guarantor, sole director guarantor or trustee guarantor. Extending your guarantee 104. If a borrower obtains a new loan or has changes made to an existing loan, then these may be covered by your guarantee to the extent they fall within the limit contained in your guarantee. 105. If we agree to increase the limit in your guarantee, we will:
106. In these circumstances, we will provide you with any unsatisfied notice of demand made by us on the borrower in respect of the loan. CHAPTER 27 Signing your guarantee When we can accept your guarantee 107. We will not accept a guarantee from you until the third day after you have been given the information provided at paragraph 96 to 99. 108. However, we can accept the guarantee earlier if you:
Signing your guarantee 109. We will give the guarantee documents directly to you or your representative. We will not give the guarantee documents to the borrower, or to someone acting on behalf of the borrower, to arrange for you to sign the guarantee. 110. If we attend the signing of the guarantee, we will ensure that you
sign the Guarantee in the absence of the borrower. This does not apply if
you are a commercial asset financing guarantor, sole director guarantor or
trustee guarantor. CHAPTER 28 Withdrawing or ending your guarantee Withdrawing your guarantee 111. You may, by written notice to us, withdraw from the guarantees:
However, you may do so only to the extent of the obligations Ending your guarantee 112. You may end your liability under a guarantee you have given to us by:
CHAPTER 29 Enforcing our rights under the guarantee How we will enforce our rights under the guarantee 113. We will not enforce any mortgage or other security you have given us in connection with the guarantee unless we have first enforced any mortgage or other security that the borrower has provided for the guaranteed liability. This paragraph does not apply where the guaranteed liability arises under a standard margin loan. 114. We will not enforce any judgment against you under the guarantee unless:
115. However, the restrictions under paragraphs 113 and 114 do:
CHAPTER 30 Keeping your accounts safe and secure We will tell you about safeguarding important items 116. We will tell you to safeguard your payment documents, cards and devices. We will tell you when you should tell us if any of those items are lost or misused 117. Our terms and conditions set out when you should tell us if any payment documents, cards or devices are lost or misused. 118. We will tell you about:
CHAPTER 31 Statements we will send you When will we give you statements for your deposit account? 119. At least every six months — or more frequently if you ask — we will give you an account statement for a deposit account (unless it is a passbook account). When will we give you statements if you are in default on your loan account? 120. If you are in default on your loan account, then we will give you a statement of account or alternative (for example, transaction history) if you ask for it. What if the National Credit Code’s statement rules do not apply to your loan or credit account?121. If you are a small business or an individual and the rules in the National Credit Code about statements of account do not apply to your loan or credit account, then we will give you a statement of transactions on your account as though those rules did apply. 122. However, we do not have to do that if the nature of the relevant banking service means it is impractical for us to do so. CHAPTER 32 Cost of transaction service fees We will tell you the cost of transaction service fees 123. If you are an individual, we will tell you about a transaction service fee immediately before you incur the fee, if it is practical and reasonable for us to do so. 124. However, it may not be practical or reasonable for us to do so in certain circumstances — for example:
CHAPTER 33 Managing a credit card We will pay off your higher interest credit card debts first 125. Any payment you make to your consumer credit card will be applied first to the amounts that have the highest interest rate as at the last statement date. However, if you ask us to, we may agree to apply a repayment against a specific debt owed. Charging interest retrospectively on portion of credit card balance that is paid off by the due date 126. If you have an interest-free period on a consumer credit card balance, or part of a balance, for a period of time, we will not retrospectively charge you interest for that period because you didn’t pay off that balance, or part of that balance, by the due date. We will give you notice before an introductory balance transfer offer ends 127. If you have an introductory balance transfer offer on your consumer credit card, we will give you at least 30 days’ notice before it is due to end. You may ask us to reduce your credit card limit 128. If you ask us to reduce your existing consumer credit card limit, we will enable you to do this online or by contacting us. This will be subject to any product features that apply (for example, where the product requires a minimum limit). You will still be required to first repay any amount above the new limit. credit card limit increases 129. We will not offer to increase your consumer credit limit on your existing credit card other than in response to a request by you for the increase in your credit limit. You can ask us to dispute a transaction on your credit or debit card account 130. If, within the time limit set by your credit card or debit card scheme rules, you tell us that you dispute a transaction on your card, then we:
131. You have the rights under the above paragraph even if the payment was debited from your credit card or debit card account and was part of a recurring payment arrangement you have with that merchant. 132. You may also have a right to dispute an unauthorised transaction under the ePayments Code or as contained in your terms and conditions. 133. We will make general information about disputed transactions available to you and notify you of the availability of this information at least once every 12 months. CHAPTER 34 Direct debits and recurring payments We will give you a list of your direct debits and recurring payments 134. If you ask us to, we will give you a list of direct debits and recurring payments on your accounts for up to the previous 13 months. The list will include only those direct debits and recurring payments that are known to us from the information we receive about your transactions. The regular payments from your:
What we will do when you ask to cancel a direct debit or advise us of a problem with a direct debit 135. You can ask us to cancel your direct debit request and we will promptly process this. 136. You can ask us to investigate an unauthorised direct debit and we will act promptly to assist you. 137. When we handle your cancellation or complaint, we will not inform you that you should first raise the cancellation or complaint directly with the merchant you pay through the direct debit. However, we may suggest that you also contact that merchant. CHAPTER 35 Joint Accounts How to use a joint account 138. If you have a joint account, we will tell you how you can use that account. How you can stop withdrawals 139. If you have a joint account, from which either you or another account holder can make withdrawals, you can ask us to change the account authority so that you all have to approve any future withdrawals. This may be relevant to you if you are vulnerable (see chapter 14). 140. The above paragraph does not apply to directors of a company who are signatories on behalf of the company, rather than joint account holders in their personal capacity. CHAPTER 36 Closing any of your banking services We will give you information about closing your accounts 141. We will give you readily accessible information about how to close your account. You may close your accounts 142. If you want to close your account, then we will enable you to do this quickly and easily. Some products may have a minimum notice period. We may close an account that is in credit 143. We may close an account of yours under its terms and conditions if that account is in credit. If we do so, we:
may charge you an amount that is our reasonable estimate of the costs of closing your account. We will tell you if we cancel your credit card 144. If we cancel your credit card we will tell you. If appropriate, then we will give you the general reasons for doing so. You can ask us to cancel your consumer credit card 145. If you want to cancel your consumer credit card, then we will provide the ability for you to do this online or over the phone. If you ask us to, we will give you information about recurring payments and your outstanding balance. CHAPTER 37 Your right to copies of certain documents We will give you certain documents you ask for 146. We will, at your request, give you a copy of your documents in our possession including:
147. However, we do not have to give you a copy of either of the following documents under the above paragraph:
When we will give you the documents you ask for 148. If we are giving you a copy of a document under the above paragraph, then we will do so within 30 days. We may waive or refund fees for providing you with a copy of a document or statement 149. We may charge you a reasonable fee for providing you with a copy of a document under this Code. However, in certain circumstances we may waive or refund that fee. 150. We may charge you a fee for hard copy statements that are not repeat statements. If you tell us, and we are reasonably satisfied that you do not have access to electronic statements, then we will waive or refund that fee. CHAPTER 38 When we change our arrangements with you When we can change the terms of conditions of our banking services 151. The terms and conditions of a banking service may allow us to change those terms and conditions in certain situations without your agreement. When we tell you about a change to the terms of conditions of our banking services 152. If we change our terms and conditions, we will tell you about the change as soon as reasonably possible. This includes a change to:
153. If we change an interest rate, we will tell you no later than the date of the change, unless we are not able to because the interest rate is calculated according to a money market or some other external reference rate, or a rate otherwise designated as a variable or floating rate. 154. Apart from changes to interest rates, if we believe a change is unfavourable to you, then we will give you prior notice of at least 30 days, subject to paragraph 155. 155. We may give you a shorter notice period, or no notice, of an unfavourable change if:
How we will tell you about changes to our arrangements with you? 156. We will tell you about these changes either:
CHAPTER 39 Contact us if you are experiencing financial difficulty What does "financial difficulty" mean? 157. Financial difficulty means you are unable to repay what you owe and are experiencing difficulty meeting your repayment obligations. This can be as a result of an unexpected event or unforeseen changes outside your control. We encourage you to contact us if you are experiencing financial difficulty 158. If you are experiencing financial difficulty, then you, or your representative should contact us as soon as possible. We will discuss your situation and the options available to help you. The sooner you contact us, the sooner we can try to help. If you have a joint account and are experiencing financial difficulty 159. If you have a joint account with someone and you are experiencing financial difficulty, then we can assist you. If you ask us to, we can do so without involving the other person initially. If you guarantee a debt to us and are experiencing financial difficulty 160. If you are a guarantor and we have made a demand for you to pay under a guarantee and you are experiencing financial difficulty, then contact us as soon as possible and we will discuss your options. Be open about your situation of financial difficulty 161. When you contact us, or are thinking about contacting us, it is important for you to be open, and as realistic as you can be, about your financial position. In turn, we will be compassionate in trying to understand your situation and when discussing any way we can help. You can choose to have us deal with your financial counsellor or representative 162. If we are working with you to help you respond to financial difficulties, then you can tell us to deal with your financial counsellor or representative — rather than dealing with you. To do this, you will need to give us their contact details in writing. 163. However, if we have made reasonable attempts to contact, or deal with, your counsellor or representative but we are unsuccessful, then we will deal with you again. We will respond promptly to you or your representative 164. We will respond promptly to you — or your representative’s — request to discuss your financial difficulties. Our reply will be within the timeframes set by the National Credit Code, if it applies. CHAPTER 40 We may contact you if you are experiencing financial difficulty We may contact you if we think you are experiencing difficulty 165. We will employ a range of practices that can identify common indicators of financial difficulty. If we identify that you may be experiencing difficulty paying what you owe under a loan (or are experiencing financial difficulty), then we may contact you to discuss your situation and the options available to help you. We will do this on a case-by-case basis. 166. If we are able to contact you and discuss your situation under paragraph 165 and we offer basic bank accounts, and you are eligible, we will offer this product to you. CHAPTER 41 We will try to help you if you are experiencing financial difficulty We will work with you to help you respond to financial difficulty 167. With your co-operation, we will work with you to help you find a sustainable solution to your financial difficulties. Any help we can give will depend on your individual circumstances. We provide help to customers on a case-by-case basis. We will give you information about our financial difficulty processes 168. We will make information publicly available about our processes for working with customers in financial difficulty. What we will consider when deciding on assistance options 169. When we are deciding whether, and how, to help you with financial difficulty, we will take into account the information available to us, including information you give us about your financial situation. Examples of how we may help you if you are experiencing financial difficulty 170. The table on page 47 sets out examples of steps we may be able to take to help you in particular situations. When we may waive your debt 171. In exceptional circumstances, we may look outside normal processes to find a way to assist you if you are experiencing long term hardship as a result of a material change in circumstances. 172. If you are an individual, we may, at our discretion, reduce or waive your debt if it is an unsecured personal loan or credit card, on a case by case basis and on compassionate grounds, having regard to the following:
We will tell you about the relevant National Credit Code provisions if they apply173. We will tell you about the hardship provisions of the National Credit Code if they apply to you.How we may be able to help
174. We will tell you about your right to make a complaint to our external dispute resolution provider if we do not assist you under the National Credit Code. We will not require you to access your superannuation 175. We will not require you to access your superannuation to pay any amount you owe us under a loan (unless you are borrowing for a self-managed superannuation fund). However, you may wish to discuss this option with a financial counsellor. You can also find out more about this from the Department of Human Services, see humanservices.gov.auOther people who can assist you 176. If you ask us to, we will refer you to financial counselling organisations that may be able to help you. We may also recommend on our own initiative that you seek independent advice from a financial counsellor. We will tell you about our decision in writing 177. We will tell you in writing:
178. If we agree to provide you with help in the form of changes to your agreement with us, then we will tell you in writing about the main details of the arrangements, including:
This does not apply to minor individual instances of help we provide — for example: deferrals, refunds or fee waivers. CHAPTER 42 When you are in default We will tell you if we report your default activity to a credit reporting body 179. We will tell you if we report any payment default of yours under your loan to a credit reporting body. You can also independently obtain a copy of your report directly from a credit reporting body. CHAPTER 43 When we are recovering a debt We will comply with debt collection guidelines 180. We will comply with the ACCC’s and ASIC’s Debt Collection Guideline: for Collectors and Creditors.181. We will comply with the Code of Operation: Recovery of Debts from Department of Human Services Income Support Payments or Department of Veterans’ Affairs Payments.182. If we sell a debt to another party, we will only choose a party that has agreed to comply with these guidelines. What we will tell you if we sell your debt to another party and we will not be your contact 183. If we sell your debt to another party, and you will be obliged to pay the debt to that other party, and we will no longer be your contact, we will write to you to let you know and to explain:
We will not sell debt when we are considering your financial situation 184. While either of the following is the case, we will not sell your debt to anyone else if:
185. However, we may transfer your debt in either of those circumstances if the transfer:
CHAPTER 44 Combining your accounts We will inform you if we combine or set-off your accounts 186. If we combine or set-off your accounts, including using available funds in one of your accounts to repay a debt you owe us, then we will promptly inform you we have done so. When we cannot combine your accounts 187. If you have an account that relates to any amounts you owe us under a loan that is regulated by the National Credit Code, then we may not combine that account in any of the following circumstances:
188. If we are considering your financial situation in either of the ways referred to in the above paragraph, then we may require that you keep funds in an account until we have decided whether to agree to your request. CHAPTER 45 Helping with deceased estates Deceased’s representatives 189. We will provide clear and accessible information on what you, the deceased’s representative, can do to manage a customer’s account in the event of their death. This information will include: who has authority to access the customer’s account or loan details; what information we need to verify the identity and authority of that person; and what steps the person authorised needs to take to manage the deceased customer’s accounts. 190. We will act on instructions concerning a deceased’s account from a person named in a grant of probate or letters of administration within 14 days of receiving the necessary information. 191. Prior to probate or letters of administration being granted, if we receive a request from a person authorised by a will or a person who has applied for letters of administration, and on providing a copy of the death certificate, we will, within 14 days of receiving the necessary information: provide access to information about the deceased’s account; and receive payment towards a debt owed to us by the deceased. Joint accounts 192. If you are a joint account holder with a deceased customer, you may continue to operate the account subject to the terms and conditions of the account. CHAPTER 46 Our Customer Advocate We will have a Customer Advocate in our bank 193. We will have a Customer Advocate in our bank to help facilitate fair customer outcomes and minimise the likelihood of future problems. The Australian Banking Association’s Guiding Principles for Customer Advocates are available at: betterbanking.net.au/wp-content/ uploads/2017/01/ABA-Customer- Advocate-Guiding-Principles-FINAL-1.pdf CHAPTER 47 If you have a complaint about us You can access free internal and external dispute resolution processes 194. If you have a complaint, contact us in the first instance 195. If we are unable to resolve your complaint to your satisfaction, we will give you information on how you can take your complaint to our external dispute resolution provider. 196. Both our internal dispute resolution process and external dispute resolution provider will comply with ASIC guidelines. We will publicise our dispute resolution processes 197. We will publish, and make readily available, information about our internal dispute resolution processes and our external dispute resolution provider through:
Farm debt mediation 198. Before we enter into a farm debt mediation with you, we will inform you that you may have a right, as an alternative to farm debt mediation, to make a complaint to our external dispute resolution provider. 199. If we do not reach an agreement at a farm debt mediation and you then decide to make a complaint to our external dispute resolution provider, we will give our consent for the external dispute resolution provider to consider the complaint. This paragraph only applies where your complaint would have been excluded by our external dispute resolution provider because it had previously been the subject of a farm debt mediation. CHAPTER 48 How we handle your complaint We will be fair and reasonable and will keep you informed 200. We will ensure our process for handling your complaint is fair and reasonable. 201. We will keep you informed of the progress of your complaint. 202. We will give you the name of a contact person who is handling your complaint and a way to contact them. Responding to your complaint 203. When we have completed our investigation, we will provide you a written response, which will include:
Timeframes for handling your complaint 204. If we resolve your complaint to your satisfaction within five business days, we do not need to provide you with a written response as outlined in paragraph 203, unless you ask us. This does not apply to a complaint relating to hardship, a declined insurance claim or the value of an insurance claim. 205. If we are unable to resolve your complaint within 21 days, we will tell you that we need more time to investigate the complaint. 206. If we are unable to resolve your complaint within 45 days, we will:
However, we do not have to keep you informed in this way if you have not responded to requests for additional information from us. CHAPTER 49 Code monitoring, complaints and sanctions Code complaints, monitoring and sanctions 207. We have established an independent code monitoring body, the Banking Code Compliance Committee ( BCCC), to monitor our compliance with this Code.Members of BCCC 208. The independent BCCC, established under this Code, is comprised of the following members:
The BCCC acting unanimously will appoint, on terms it thinks appropriate, a person or a panel of persons, with expertise in small business and/or agribusiness to act as a consultant on small business and agribusiness issues. The consultant will provide advice on small business/agribusiness matters where requested by the BCCC. You can contact the BCCC about a breach of this Code 209. If you want to report an alleged breach of this Code you can contact the BCCC. 210. If you have a specific dispute with your bank that involves a breach of this Code, you should contact your bank in the first instance, and then your bank’s external dispute resolution provider. Powers and role of the BCCC 211. In relation to the Code, the BCCC has the following powers:
When the BCCC is undertaking its investigation function it will prioritise its efforts on monitoring and public assurance. Prioritising investigative effort will have regard to factors such as: number of customers affected, severity of breach and public interest. BCCC resources 212. The ABA will ensure that the BCCC has sufficient resources and funding to carry out its functions. More information on the BCCC is available in its charter on the BCCC website. We will comply with the BCCC 213. We will co-operate and comply with all reasonable requests of the BCCC in the performance of its monitoring and investigative activities. BCCC Powers and Sanctions 214. The BCCC has the power to apply sanctions to a Code subscriber for a breach of this Code where a finding has been made that:
215. The BCCC may impose one or more sanctions after considering the seriousness of the breach. Sanctions available to the BCCC are:
Acronyms
Definitions
Transitional period For the purpose of this section the transition date means:
ABA has published on its website the member bank’s subscription to this Code. Application to Banking Services This Code will apply to every banking service for which you enter into an agreement with us on or after the transition date. For ongoing banking services that we were providing you as at the transition date or where documentation was sent to you before the transition date: a) the terms and conditions of that banking service need not comply with this Code, and will continue to apply even if they are inconsistent with this Code. If we provide you with revised terms and conditions after the transition date, those revised terms and conditions will comply with this Code; b) this Code applies where it relates to matters that are not specifically dealt with in the terms and conditions of that banking service; c) this Code does not affect things we did in relation to that banking service before the transition date. If our banking service arrangements with you as at the transition date complied with the 2013 Code, they will continue to comply with this Code even if this Code would have required something to be done differently. Application to Guarantees This Code will apply to every Guarantee which you enter into on or after the transition date. For Guarantees that you entered into before the transition date or where documentation was sent to you before the transition date: a) the terms and conditions of that Guarantee need not comply with this Code, and will continue to apply even if they are inconsistent with this Code. If we provide you with revised terms and conditions after the transition date, those revised terms and conditions will comply with this Code; b) if after the transition date we ask you to increase the limit of your Guarantee, we will comply with the relevant provisions of this Code; c) this Code applies where it relates to matters that are not specifically dealt with in the terms and conditions of that Guarantee; d) this Code does not affect things we did in relation to the Guarantee before the transition date. If our Guarantee arrangements with you as at the transition date complied with the 2013 Code, they will continue to comply with this Code even if this Code would have required something to be done differently. 2013 Code The 2013 Code will not apply to any banking service or Guarantee to the extent that this Code applies. |
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