Australian Banking Code: Standards and Regulations for Banking Services, Summaries of Business

Download Australian Banking Code: Standards and Regulations for Banking Services and more Summaries Business in PDF only on Docsity! Setting the standards of practice for banks, their staff and their representatives 1 July 2019 Release Banking Code of Practice Australian Banking Association 2019 V ersion of t he C ode. This is the 2019 version of the code. An updated version is available. Australian Banking Association: Post PO Box H218, Australia Square NSW 1215 Telephone 02 8298 0417 Web ausbanking.org.au Banking Code of Practice Published 24 June 2019 The Australian Banking Association has the active participation of member banks in Australia 2019 V ersion of t he C ode. This is the 2019 version of the code. An updated version is available. The 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 remain 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 Association 3 2019 V ersion of t he C ode. 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 2019 V ersion of t he C ode. 1. Trust and confidence • We are committed to earning and retaining the trust of our customers and the community. • We are committed to making promises and keeping them to deliver good customer and community outcomes. • We will comply with all laws relating to banking services. • We will protect your privacy. • We recognise our role in society and our impact on the wider community. 2. Integrity • We will act honestly and with integrity. • We will be fair and responsible in our dealings with you. • We will build and sustain a culture based on strong ethical foundations. 3. Service • We will deliver high customer service and standards. • We will ensure banking services are accessible, inclusive and provided to you in a fair and ethical manner. • We will raise awareness of the basic (low, or no fee) banking products that we may offer. • We will take a responsible approach to lending. • We will work to help you if you are experiencing financial difficulty. 4. Transparency and accountability • We will communicate with you in a clear and timely manner. • We will be accountable in our dealings with you. • We will be transparent in our communications with you. 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. 5 2019 V ersion of t he C ode. 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 Table of contents 8 2019 V ersion of t he C ode. 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 or debit 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 2019 V ersion of t he C ode. 10 2019 V ersion of t he C ode. What is a “small business”? A business is a “small business” if at the time it obtains the banking service all of the following apply: a) it had an annual turnover of less than $10 million in the previous financial year; and b) it has fewer than 100 full-time equivalent employees; and c) it has less than $3 million total debt to all credit providers including: i. any undrawn amounts under existing loans; ii. any loan being applied for; and iii. the debt of all its related entities that are businesses. 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 2019 V ersion of t he C ode. PART 2 Your banking relationship 14 2019 V ersion of t he C ode. 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: a) can competently do their work; and b) understand the Code and how to comply with it when they are providing banking services. 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 15 2019 V ersion of t he C ode. c) how often we give you statements of account; d) how we may change fees, charges, interest or other terms and conditions, and how we will notify you of these changes; e) for a loan, whether the loan is repayable on demand; and f) a statement that information on current standard fees, charges and any interest rates is available on request. Specific information 26. If the following information applies to your banking service, we will give you that information in, or with, our contract: a) minimum balance requirement; b) any restriction on depositing money, or withdrawing money, from a relevant account; c) the repayment details; and d) how we process your request to cancel a direct debit arrangement. Term deposits 27. Our terms and conditions for a term deposit account will contain the following specific information: a) how we will pay interest and repay the principal to you; b) how funds may be dealt with at maturity; and c) details of any fee, charge, or change in an interest rate resulting from a withdrawal in advance of maturity. Cheque accounts 28. Our terms and conditions for an account with cheque access will contain the following specific information: a) the normal length of time we take to clear a cheque; b) how you may arrange for us to clear a cheque faster than normal – known as arranging special clearance; c) how and when a cheque may be stopped; d) the effect of crossing a cheque; e) the meaning of ‘not negotiable’ and ‘account payee only’; f) the significance of deleting the words ‘or bearer’ from a cheque; g) how you may write a cheque so as to reduce the risk of it being changed in an unauthorised way; and h) when we will not pay (known as, ‘dishonour’) a cheque – including if the cheque is post-dated or stale. 18 2019 V ersion of t he C ode. 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: a) details of the exchange rates and commission charges that we know will apply — if we do not know those details, then we will give you the details we know about how to find out relevant information at the time of the transaction; and b) an indication of when any money you send overseas would normally arrive at the destination to which you are sending it. 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: a) a statement that you should check with your insurer about your cover; and b) a reference to the Australian Securities and Investments Commission’s MoneySmart website moneysmart.gov.au for information on property insurance. 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 sure we have your agreement to do so. 19 2019 V ersion of t he C ode. PART 4 Inclusive and accessible banking 20 2019 V ersion of t he C ode. 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. 23 2019 V ersion of t he C ode. PART 5 When you apply for a loan 24 2019 V ersion of t he C ode. 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: a) your financial position; or b) your account conduct. 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: a) have taken reasonable steps to ensure that you understand the risks associated with entering into the loan, and understand the difference between being a co-borrower and a guarantor; b) have taken into account the reasons why you want to be a co-borrower; and c) are satisfied that you are not experiencing financial abuse. 55. A substantial benefit includes where: a) you acquire a reasonably proportionate legal or equitable interest in assets purchased with the loan funds; or b) a reasonable portion of the loans funds are used to repay your debts, or other obligations owed by you. 56. You may end your liability under the loan by giving us a written request to do so in the following circumstances: a) where credit has not been provided or relied upon by any co- borrower; or b) for any future advances under the loan, where we can terminate any obligation we have to extend further credit to any other co-borrower under the same loan. 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. 25 2019 V ersion of t he C ode. PART 6 Lending to small business 28 2019 V ersion of t he C ode. 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: a) the information we require; and b) after we have received the information we have requested, how long before we are likely to make a decision. 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: a) based on our reasonable opinion, it is necessary for us to act to manage an immediate risk; b) you are insolvent, or go into bankruptcy, administration or another insolvency process, or enforcement action is taken against you by us or another credit provider; c) we believe, on reasonable grounds, that you or a guarantor have not complied with the law or any requirement of a statutory authority; or d) we have already given you a period to remedy a non-monetary default under paragraph 81. 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. 29 2019 V ersion of t he C ode. 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: a) you or a guarantor is insolvent, goes into bankruptcy, voluntary administration, other insolvency process or arrangement, or no longer has legal capacity; b) enforcement proceedings is taken against you or a guarantor or your or their assets by another creditor; c) early repayment is required under a separate financing arrangement you or a guarantor has with us, or default based action is taken against you or a guarantor by us, due to an event of default which is described in this chapter; d) we believe on reasonable grounds that you, your agent or a guarantor has not complied with the law or any requirement of a statutory authority, or it becomes unlawful for you or us to continue with the loan; e) you or a guarantor gives us information or makes a representation or warranty to us which is materially incorrect or misleading (including by omission); f) you use the loan for a purpose not approved by us; g) your assets or a guarantor’s assets are dealt with, or attempted to be dealt with in breach of the loan, or any security or other agreement with us without our consent; h) you or a guarantor do not provide financial information required by your agreement with us; i) you or a guarantor do not maintain a licence or permit necessary to conduct your business; j) you or a guarantor do not maintain insurance required by your agreement with us; k) legal or beneficial ownership, or management control of a borrower or guarantor or their business changes without our consent; or l) status, capacity or composition of you or a guarantor changes without our consent. 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: a) you or your guarantor’s ability to meet your or their financial obligations to us; b) our credit or security risk (or our ability to assess these); or c) our legal or reputation risk where paragraph 80(d) or (e) and (f) applies. 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 30 2019 V ersion of t he C de. 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: a) a specific amount and/or category of amounts such as all amounts owing under a specific loan, plus other liabilities and amounts as described in the guarantee (for example, interest and recovery costs); or b) the value of a specified property or other assets under a specified mortgage or other security at the time of recovery. 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: a) the amount, or nature, of the limit you request does not cover the borrower’s existing liability (plus any interest owed, or any fees, or charges that we may incur in respect of that liability) under the relevant loan contract at the time; b) we are obliged to make further advances to the borrower; or c) 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: a) you should seek independent legal and financial advice; b) you can refuse to sign the guarantee; c) there are financial risks involved; d) you can limit your liability in accordance with this Code or as allowed by law; e) you can request information about the transaction or loan; and f) if applicable, that the guarantee may cover future credit facilities and variations of the existing loan. 97. We will tell you: a) about any notice of demand we have made on the borrower for the guaranteed loan, or any loan the borrower has (or has had) with us, within the previous two years; and b) if any existing loan we have given the borrower will be cancelled if the guarantee is not provided. This paragraph does not apply if you are a commercial asset financing guarantor, sole director guarantor or trustee guarantor. 33 2019 V ersion of t he C ode. 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: a) the proposed loan contract; b) a list of any related security contracts; c) any related credit report from a credit reporting body; d) any current credit-related insurance contract that is in our possession; e) any financial accounts or statement of financial position the borrower has given us in the previous two years for the purposes of the guaranteed loan; f) the latest statement of account relating to the loan for a period in which a notice of demand was made by us within the last two years; and g) other information we have about the guaranteed loan that you reasonably request — but we do not have to give you our internal opinions. 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: a) a copy of any formal demand or default notice we send to the borrower after we send it; b) a written notice if the borrower has advised us that they are experiencing financial difficulty which has resulted in a change to their loan; and c) a written notice if the borrower is in continuing default for more than two months after the issuance of the default notice referred to above. 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 101, 102 and 103, do not apply if you are a commercial asset financing guarantor, sole director guarantor or trustee guarantor. 34 2019 V ersion of t he C ode. 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: a) give you what is required under paragraph 99; and b) obtain your written acceptance of the extension of the guarantee. 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: a) have obtained independent legal advice about the guarantee; b) have accepted an extension of the guarantee; c) are a commercial asset financing guarantor, sole director guarantor, trustee guarantor or vehicle asset financing guarantor; or d) you are a director guarantor and you choose to sign and deliver the guarantee earlier. We will not influence your choice. 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. Paragraphs 109 and 110, do 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: a) at any time before we provide credit under the relevant loan; or b) after credit is first provided, if the signed version of the relevant loan differs in a material respect from the proposed loan we gave you before you signed the Guarantee. This does not apply to any change to the loan described in paragraph 104. However, you may do so only to the extent of the obligations under the guarantee. 35 2019 V ersion of t he C ode. PART 8 Managing your account 38 2019 V ersion of t he C ode. 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: a) how you can notify us of the loss, theft or misuse; and b) the consequences of you not telling us about the loss, theft or misuse. 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 that is not a business, 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: a) dishonour fees; b) if the fee is charged based on end- of-day balance and, therefore, is not necessarily incurred at the time of the transaction — for example, an overdrawn fee based on end of day balance; c) if you are making an online purchase: from a third party, using a merchant terminal, or using another bank’s ATM, or d) break costs, which may be incurred if your transaction makes a prepayment to a fixed rate loan. 39 2019 V ersion of t he C ode. CHAPTER 33 Managing a credit card or debit 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: a) will claim the relevant amount back if we find it be incorrectly charged and you have not contributed to the loss; or b) may accept the merchant’s refusal to make that chargeback only if the refusal is made in a way allowed under the relevant card’s scheme rules. 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. 40 2019 V ersion of t he C ode. 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: a) our standard fees and charges; or b) an interest rate. 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 or changes to repayments, 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: a) we believe doing so is necessary for us to avoid, or to reduce, a material increase in our credit risk or our loss; or b) there is a change to, or introduction of a government charge that you pay directly, or indirectly, as part of your banking service. In that case, we will tell you about the introduction or change reasonably promptly after the government notifies us (however, we do not have to tell you about if the government publicises the introduction or change). How we will tell you about changes to our arrangements with you? 156. We will tell you about these changes either: a) by advertising in the national, or local, media; or b) by giving you written notice. 43 2019 V ersion of t he C ode. PART 9 When things go wrong 44 2019 V ersion of t he C ode. 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. 45 2019 V ersion of t he C ode. 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.au Other 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: a) whether we will provide you with help in relation to your financial difficulty; and b) the reasons for our decision. 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: a) the repayments you need to make under the proposed new arrangement; b) what will happen at the end of the new arrangement; and c) whether you accepting the proposed new arrangement will have any adverse consequences in relation to banking services or your credit history (for example, an entry in your credit report or cancellation of a banking service). 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. 48 2019 V ersion of t he C ode. 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: a) that we have sold your debt; and b) who we have sold it to. 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: a) we are actively considering your financial situation: i. under paragraph 167; or ii. under the hardship variation provisions of the National Credit Code; or b) you are complying with an arrangement that you and we agreed to after we completed any considerations of the type referred to in this paragraph. 185. However, we may transfer your debt in either of those circumstances if the transfer: a) is part of a funding arrangement — for example, a securitisation or the issue of covered bonds or similar funding arrangements; or b) is part of a sale of business or business restructure. 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: a) while we are actively considering your financial situation under either: i. paragraph 167 of this Code; or ii. under the hardship provisions of the National Credit Code; or b) while you are complying with an arrangement you have made with us after we have considered your financial situation; or c) if doing so breaches Code of Operation: Recovery of Debts from Department of Human Services Income Support Payments or Department of Veterans’ Affairs Payments. 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. 49 2019 V ersion of t he C ode. CHAPTER 45 Helping with deceased estates Deceased’s representatives 189. We will treat the deceased person’s representative with respect and compassion and 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: a) how to notify us of a customer’s death; b) who has authority to access the customer’s account or loan details; c) what information we need to verify the identity and authority of that person; and d) what steps the person authorised needs to take to manage the deceased customer’s accounts, including information about direct debits and recurring payments on those accounts, and we will assist you to manage direct debits and recurring payments in the ways outlined in Chapter 34. 190. Once notified of a customer’s death we will: a) identify any fees that are for products and services that can no longer be provided, or will not be provided to the deceased’s estate; b) stop charging those fees; c) if any fees referred to in paragraph (a) have already been charged since the customer’s death – refund those fees; and d) 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: a) provide access to information about the deceased’s account including relevant ongoing fees; and b) 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. 50 2019 V rsion of t he C ode. 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: ausbanking.org.au 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 the Australian Financial Complaints Authority (AFCA). 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: a) our branches; b) our telephone banking services; and c) our websites or other digital platforms. 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: a) the outcome of our investigation of your complaint; b) your right to take your complaint to our external dispute resolution provider; and c) the name and contact details of our external dispute resolution provider. 53 2019 V ersion of t he C od . 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: a) tell you the reasons for the delay; b) tell you the date by which you can reasonably expect to hear the outcome of our investigation; and c) give you monthly updates on the progress; and d) provide you with the name and contact details of our external dispute resolution providers. However, we do not have to keep you informed in this way if you have not responded to requests for additional information from us, and your non- response is preventing us from dealing with your complaint. 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: a) an independent chairperson - appointed jointly by AFCA and the ABA; and b) a consumer representative – appointed by consumer representatives on the Board of AFCA; and c) a banking representative – appointed by the ABA. 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: a) monitor and oversee compliance with the Code; b) investigate any allegation of a Code breach noting its priority pursuant to its charter; c) as appropriate, investigate serious or systemic breaches; 54 2019 V ersion of t he C ode. d) request information from subscribing banks and other stakeholders; e) make findings and recommendations on Code breaches; f) apply sanctions; g) provide guidance and reports; and h) undertake other functions and responsibilities as reasonably determined from time to time. In addition, the BCCC will endeavour to: a) drive improvements in compliance with the Code, to achieve best practice through a collaborative approach with the banking sector and other key stakeholders; and b) promote awareness of the Code and the role of the BCCC through engagement with key stakeholders. 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: a) the breach is serious or systemic; b) the bank has failed to act on BCCC’s request to remedy a breach, or failed to do so within a reasonable time; c) there has been a breach of an undertaking given to the BCCC; d) the bank has not taken adequate steps to prevent a serious or systemic breach from reoccurring; or e) the bank has not co-operated and complied with reasonable requests of the BCCC in the performance of its monitoring and investigative activities. 215. The BCCC may impose one or more sanctions after considering the seriousness of the breach. Sanctions available to the BCCC are: a) requiring the bank to rectify or take corrective action on the breach identified; b) requiring a bank to undertake a compliance review of our remediation actions; c) formally warning a bank; d) requiring a bank to undertake a staff training program on the Code; e) naming a bank in the BCCC annual report or website; and f) reporting serious or systemic ongoing instances where a bank has been non-compliant to ASIC. 55 2019 V rsion of t he C ode. Complaint An expression of dissatisfaction made to us in relation to a banking service, or the complaints handling process itself, where a response or resolution is explicitly or implicitly expected. Consumer credit insurance Insurance that provides cover if you can’t meet the repayments on your loan because you lose your job, you are sick or injured, or you die. Days Calendar days. Default You are ‘in default’ if you fail to meet any of the terms and conditions of the contract. Default based action Exercising a legal or contractual right as a direct result of an event of default. Device A device given by us to you that is used to perform a transaction. Examples include, ATM card, debit card or credit card, contactless device. Director guarantor A guarantor of a loan who is a director of a company which is to be the debtor for the loan. Dispute Has the same meaning as complaint. eftpos Proprietary or domestic debit cards managed by eftpos Payments Australia Limited. Enforcement proceedings For a small business: a) commencing proceedings in a court to recover a debt or to recover possession of property subject to security; or b) otherwise enforcing security by taking possession (or seeking to take) of security property, exercising a power of sale over security property, appointing receivers or receivers and managers, appointing voluntary administrators, or making application to a court for the appointment of provisional liquidators or the appointment of a trustee in bankruptcy; or c) enforcing a judgment against you, a guarantor, or your or their assets. 58 2019 V ersion of t he C ode. Loan The credit or financial accommodation provided to you under the banking service, including, but not limited to, credit facility, credit contract, loan facility, home loan, personal loans, bill facilities, overdrafts, commercial asset finance. Merchant A provider of goods and services. National Credit Code Means the National Credit Code set out in Schedule 1 of the National Consumer Credit Protection Act 2009. Related entity As defined in section 9 of the Corporations Act 2001 (Cth). Security Includes, without limitation, mortgage of and a security interest within the meaning of the Personal Property Securities Act 2009. Sole director guarantor A guarantor of a loan who is a director of a company that has only one director, and that company is to be the debtor for the loan. Standard fees and charges Fees and charges normally charged by us in respect of a banking service. Terms and conditions Terms and conditions specifically applied by us to a banking service, but does not include any other terms and conditions that may apply by operation of law. Trustee guarantor A guarantor of a loan where the guarantor and the debtor are the same person, and that person is acting as trustee of a trust in one of these roles and is acting in their personal capacity in the other role. Unauthorised transaction A transaction that is not authorised by you. Vehicle asset financing Asset finance provided by us to an individual that is not a business, in relation to a motor vehicle and/or any related insurance products. Vehicle asset finance guarantor A guarantor who has provided a guarantee for the vehicle asset finance of an individual that is not a business. 59 2019 V ersion of t he C ode. Transitional period 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. For the purpose of this section the transition date means 1 July 2019. 60 2019 V ersion of t he C ode.