Powered by MOMENTUM MEDIA
subscribe to our newsletter

Banks welcome government review

The Australian Bankers Association (ABA) says the federal government’s review into external dispute resolution schemes in the finance sector will go hand-in-hand with its new measures aimed at “strengthening community trust” in banks.

ABA chief executive Steven Münchenberg said the review into external dispute resolution schemes is important to ensure the right processes are in place to handle disputes from individual and small business customers.

“When a customer is unhappy, they are entitled to be heard and to have clear processes for having their complaint dealt with, first by their bank, and if still not satisfied, through external dispute resolution,” he said.

Mr Münchenberg said banks want to help customers work through any disputes to avoid the need for external intervention, and as part of new measures to protect customer interests, will ensure they have an independent customer advocate to offer guidance and support.

The banking industry will also work with the review to look at increasing the monetary limit of claims that the Financial Ombudsman Service can assess and the amount of compensation it can award, Mr Münchenberg said.

Advertisement
Advertisement

PROMOTED CONTENT


“We will be looking to ensure there is clarity for customers about which process is right for them without adding complexity or bureaucracy to external dispute resolution processes,” he said.

“Banks will also continue to consult with the Australian Securities and Investments Commission on its work to improve customer remediation programs. We support expanding these programs from personal advice to cover all types of financial advice and products.”

[Related: Bank remuneration headed for independent review]

Banks welcome government review
mortgagebusiness

Latest News

The major bank will develop an integrated remediation plan on all activities related to risk governance and report to APRA each quarter as p...

The total value of new loan commitments for housing and the number of loans for the construction of new dwellings have reached record levels...

The recovery in Australian house prices continued in November, with CoreLogic stating that house values look set to surpass their pre-COVID ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.