subscribe to our newsletter
Banks welcome government review

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.

“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 logo

Latest News

A newly launched campaign is calling on Australians to write to the Attorneys-General “demanding change” to ensure that bank staff can ...

A community sector and charities specialist is to become the new chief ombudsman and CEO of the newly formed dispute resolutions body, the ...

Submissions are now open for the annual Women in Finance Awards, the prestigious event that aims to highlight the outstanding work of women...

Promoted Stories

podcast

LATEST PODCAST: How the market has changed in the last 25 years, royal commission hearings, broker advocacy

Do you expect access to credit to get harder this year?