In April the Australian Bankers Association announced it would review the banking industry’s service to consumer and small business.
They have now confirmed the terms of reference and appointed a former regulator, Phil Khoury, to head up the review.
The current code of practice covers rules that banks should abide by on issues such as cancelling direct debits when customers move banks, debt collection, complaints handling and fee disclosure.
The code is not a law but the industry says it binds banks to meet their obligations and it is overseen by the Code Compliance Monitoring Committee.
“The independent review will determine if the code continues to serve customers’ interests and it will make recommendations on how it could be improved,” ABA chief executive Stephen Munchenberg said.
As well as reviewing the code of practice, banks are also reviewing commissions and other incentives paid to staff, a move that some view as a response to calls for a royal commission into the sector.
Read more here: SMH Article