First
published by the Australian
Bankers' Association
in August 2003. Subsequent
amendments published
in May 2004. For details
of these amendments
see Australian
Bankers' Association
under "Code of
Banking Practice".
This
version of the Code
of Banking Practice
includes these amendments.
1.1
This Code is
a voluntary code of
conduct which sets
standards of good
banking practice for
us to follow
when dealing with
persons who are, or
who may become, our
individual and small
business customers
and their guarantors.
(a)
continuously work
towards improving
the standards of
practice and service
in the banking industry;
(b)
promote better informed
decisions about
our banking services:
(i)
by providing effective
disclosure of
information;
(ii)
by explaining
to you,
when asked, the
contents of brochures
and other written
information about
banking services;
and
(iii)
if you
ask us
for advice on
banking services:
(A)
by providing
that advice
through our
staff authorised
to give such
advice;
(B)
by referring
you to
appropriate
external sources
of advice; or
(C)
by recommending
that you
seek advice
from someone
such as your
legal or financial
adviser;
(c)
provide general
information about
the rights and obligations
that arise out of
the banker and customer
relationship in
relation to banking
services;
(d)
provide information
to you in
plain language;
and
(e)
monitor external
developments relating
to banking codes
of practice, legislative
changes and related
issues.
2.2
We will act
fairly and reasonably
towards you
in a consistent and
ethical manner. In
doing so we
will consider your
conduct, our
conduct and the contract
between us.
2.3
In meeting our
key commitments to
you, we
will have regard to
our prudential
obligations.
3.1
We will comply
with all relevant
laws relating to banking
services, including
those concerning:
(a)
consumer credit
products;
(b)
other financial
products and services;
(c)
privacy; and
(d)
discrimination.
3.2
If this Code
imposes an obligation
on us, in addition
to obligations applying
under a relevant law,
we will also
comply with this Code
except where doing
so would lead to a
breach of a law (for
example, a privacy
law).
In
addition to your
rights under this
Code, you
retain any rights
you may have
under Federal laws,
especially the Trade
Practices Act 1974,
the Australian Securities
and Investments Commission
Act 2001 and Chapter
7 of the Corporations
Act 2001, and under
State and Territory
laws, especially the
Uniform Consumer Credit
Code and Fair Trading
Acts.
5.1
We will require
the ABA to
commission an independent
and transparent review
of this Code
every 3 years or sooner
if appropriate, with
the review to be conducted
in consultation with:
(a)
banks which
adopt this Code;
(b)
consumer organisations;
(c)
other interested
industry associations;
(d)
relevant regulatory
bodies; and
(e)
other interested
stakeholders.
5.2
We will participate
in any such review
and co-operate with
the person conducting
it.
5.3
We will require
the ABA to
establish, and we
will support, a forum
(including consumer,
small business
and banking industry
representatives) for
the exchange of views
on:
(a)
banking issues;
and
(b)
the effectiveness
of this Code.
We
will also require
the ABA to
ensure that these
views are taken into
account in the next
review of this Code.
5.4
We will require
the ABA to
promptly publish on
its website:
(a)
the recommendations
and report arising
from a review of
this Code
(and to make them
available to the
public in hard copy
on request);
(b)
reasons why any
such recommendation
has not been accepted;
and
(c)
quarterly progress
reports on the implementation
of those recommendations
which have been
accepted, until
the implementation
process is complete.
We
recognise the needs
of elderly customers
and customers with
a disability to have
access to transaction
services, so we
will take reasonable
measures to enhance
their access to those
services.
10.1
We will expeditiously
provide to you,
or any person, on
request:
(a)
the terms and
conditions of
any ongoing banking
service we currently
offer;
(b)
full particulars
of standard fees
and charges
that are, or may
become, payable
for any banking
service we currently
offer; and
(c)
particulars of the
interest rates applicable
to any banking
service we currently
offer.
10.2
The terms and conditions
of our banking
services will:
(a)
be distinguishable
from marketing or
promotional material;
(b)
be in English and
any other language
we consider
to be appropriate;
(c)
be consistent with
this Code;
(d)
be provided at the
time of or before
the contract for
an ongoing banking
service is made
except where it
is impracticable
to do so, in which
case they will be
provided as soon
as practicable afterwards;
and
(e)
draw attention to
the availability
of the general descriptive
information referred
to in clauses 13.1
and 13.2 if it is
relevant and will
specifically mention
the availability
of information about:
(i)
account opening
procedures;
(ii)
our obligations
regarding the
confidentiality
of your
information;
(iii)
complaint handling
procedures;
(iv)
bank cheques;
(v)
the advisability
of you
informing us
promptly when
you are
in financial difficulty;
and
(vi)
the advisability
of you
reading the terms
and conditions
applying to the
relevant banking
service.
10.3
Any written terms
and conditions
will include a statement
to the effect that
the relevant provisions
of this Code
apply to the banking
service but need
not set out those
provisions.
10.4
We will include
(where relevant) the
following in or with
our terms and conditions
applying to a banking
service:
(a)
the standard
fees and charges
that then apply;
(b)
the method by which
interest, if any,
is calculated and
the frequency with
which it will be
credited or debited;
(c)
the manner in which
you will
be notified of changes
to:
(i)
the terms and
conditions;
(ii)
fees and charges;
and
(iii)
interest rates;
(d)
if appropriate,
the fact that more
than one interest
rate may apply;
(e)
any minimum balance
requirement or restriction
on depositing money
in, or withdrawing
money from, an account;
(f)
for term deposits:
(i)
how we
will pay interest
and repay the
principal;
(ii)
how funds may
be dealt with
at maturity; and
(iii)
details of any
fee or charge
or change in an
interest rate
resulting from
a withdrawal in
advance of maturity;
(g)
in respect of a
loan to you
which is not regulated
by the Uniform Consumer
Credit Code, the
repayment details;
(h)
subject to clause
24, the frequency
with which statements
of account will
be provided;
(i)
a statement that
information on current
interest rates and
standard fees
and charges
is available on
request;
(j)
how we will
process the cancellation
of a direct debit
request relevant
to a banking
service, in
accordance with
clause 19 of this
Code; and
(k)
how you or
we may alter
or stop another
payment service.
10.5
We will include
in or with the terms
and conditions
for our credit
cards:
(a)
general information
on chargeback rights;
(b)
a prominent statement
of the time frames
within which you
should report a
disputed transaction
(so that we
may reasonably ask
for a chargeback
where such a right
exists) and a note
to the effect that,
where the Electronic
Funds Transfer Code
of Conduct applies,
there may be no
such time frames
in certain circumstances;
and
(c)
a warning that the
ability to dispute
a transaction may
be lost if it is
not reported within
the time frames
we specify
or describe.
11.1
If you request
a copy of a document,
you may have
rights in respect
of that request under
the Uniform Consumer
Credit Code or Chapter
7 of the Corporations
Act 2001, which are
greater than those
which apply under
this Code.
We will comply
with that law when
it applies. Otherwise
this clause 11 applies.
11.2
At your request,
we will give
you a copy
of any of the following
documents we
have relating to a
banking serviceyou have, or
had, with us:
(a)
a contract (including
terms and conditions,
standard fees and
charges and
interest rates);
(b)
any mortgage or
other security document;
(c)
a statement of account;
and
(d)
a notice previously
given to you
relevant to us
exercising our
rights.
11.3
We will, subject
to clauses 11.4 and
11.5, provide you
with a copy of a document:
(a)
within 14 days,
if the original
came into existence
1 year or less before
the request is given;
(b)
within 30 days,
if the original
came into existence
more than 1 year
but less than 7
years before the
request is given;
and
(c)
otherwise within
a reasonable time.
11.4
We do not have
to give you
a copy of a notice
which requires you
to take action if
we receive
the request more than
2 years after discharge
or termination of
the original contract
to which the notice
is related.
11.5
We do not have
to give you
another copy of a
statement of account
within 3 months after
we have given
you a copy
of the same statement
of account.
11.6
A copy of a document
provided to you
under this Code
may be in the form
of a computer-generated
facsimile containing
the same information
as the original or
in any other form
as mutually agreed.
11.7
We may charge
you a reasonable
fee for providing
you with a
copy of a document
under this Code.
We
will make available
to you, a potential
customer or an appropriate
external agency the
interest rates and
standard fees and
charges applicable
to a banking service
that is a credit service
offered by us,
for use in the preparation
of a comparison rate.
13.1
We will provide
to you or a
potential customer,
upon request, general
descriptive information
concerning our
banking services,
including where appropriate:
(a)
account opening
procedures;
(b)
our obligations
regarding the confidentiality
of your information;
(c)
complaint handling
procedures;
(d)
bank cheques;
(e)
the advisability
of you informing
us promptly
when you
are in financial
difficulty; and
(f)
the advisability
of you reading
the terms and
conditions applying
to the relevant
banking service.
13.2
When you open
an account with cheque
access, and on request,
we will provide
you with general
descriptive information
on:
(a)
the time generally
taken for clearing
a cheque and how
a cheque may be
specially cleared;
(b)
the effect of crossing
a cheque, the meaning
of "not negotiable"
and "account payee
only" and the significance
of deleting "or
bearer" when any
of these expressions
appear on a cheque;
(c)
how and when a cheque
may be stopped;
(d)
how a cheque may
be made out so as
to reduce the risk
of unauthorised
alteration; and
(e)
the dishonour of
cheques, including
post-dated and stale
cheques.
If
you tell us
that you are
a low income earner
or a disadvantaged
person (regardless
of whether you
are an existing or
prospective customer
but not if you
are a small business),
we will provide
you with details
of accounts which
may be suitable to
your needs.
We will also
do this if you
ask for this information
or if, in the course
of dealing personally
with you, we
become aware that
you are in
receipt of Centrelink
or like benefits.
15.1
We will disclose
to you the
existence of any application
fee or charge and
whether the fee or
charge is refundable
if your application
is rejected or not
pursued. This will
be done before you
are liable to pay
any such fee or charge.
15.2
Where we charge
you for the
provision of a bank
cheque, an inter-bank
transfer or like service,
we will disclose
the fee or charge
to you when
the service is provided
or at any other time
on request except
where the relevant
banking service
is regulated by Chapter
7 of the Corporations
Act 2001.
16.1
We will provide
to you or a
potential customer
upon request, general
descriptive information
(which may consist
of or include material
made available by
a government) about:
(a)
the identification
requirements of
the Financial Transaction
Reports Act 1988;
and
(b)
the options available
to you or
a potential customer
under tax file number
legislation.
16.2
When you already
have an account with
us and we
open a new account
for you, we
will state in writing:
(a)
whether the new
account may be combined
with the existing
account; and
(b)
what the consequences
are if the accounts
are combined.
17.1
We will inform
you promptly
after exercising our
right to combine your
accounts.
17.2
In exercising a right
to combine accounts,
we will comply
with any applicable
requirements of the
Code of Operation
for Centrelink Direct
Credit Payments.
18.1
When, in relation
to a banking service,
we intend to:
(a)
introduce a fee
or charge (other
than a government
charge referred
to in clause 18.2);
(b)
vary the minimum
balance to which
an account keeping
fee applies;
(c)
vary the method
by which interest
is calculated;
(d)
vary the balance
ranges within which
interest rates apply
to a deposit account;
or
(e)
vary the frequency
with which interest
is debited or credited,
we
will provide written
notice of the introduction
or variation to you
at least 30 days before
the change takes effect
except that such notice
is not required where
you cannot
reasonably be located
or you have
engaged in the transaction
or procured the service
anonymously.
18.2
We will notify
you of the
introduction or variation
of a government charge
payable directly or
indirectly by you
by advertisement in
the national media
or local media or
in writing to you,
unless the introduction
or variation is publicised
by a government, government
agency or representative
body.
18.3
We will notify
you of other
variations to the
terms and conditions
(including a variation
of standard fees
and charges or
of an interest rate)
in relation to a bankingservice by
advertisement in the
national media or
local media or in
writing to you,
no later than the
day on which the variation
takes effect, except
where the interest
rate is linked to
money market rates
or some other external
reference rate, changes
to which we
cannot notify you
of in advance.
18.4
Clauses 18.1 to 18.3
do not apply to abanking serviceregulated by:
(a)
the Uniform Consumer
Credit Code; or
(b)
Chapter 7 of the
Corporations Act
2001 so far as the
relevant change
is a change to fees
and charges.
This
is because these laws
have their own notice
requirements.
(a)
instruction to cancel
a direct debit
request relevant
to a banking
service we provide
to you; and
(b)
complaint that a
direct debit
was unauthorised
or otherwise irregular,
and
will not direct or
suggest that you
should first raise
any such request or
complaint directly
with the debit
user (but we
may suggest that you
also contact the debit
user).
19.2
Clause 19.1 does not
apply to a payment
service relating to
a credit card account
(see clause 20).
21.1
In providing a foreign
exchange service,
other than by credit
or debit card or travellers'
cheque, we
will provide to you:
(a)
details of the exchange
rate and commission
charges that will
apply or, if these
are not known at
the time, details
of the basis on
which the transaction
will be completed
if they are known
to us; and
(b)
an indication of
when money sent
overseas on your
instructions would
normally arrive
at the overseas
destination.
21.2
Prior to granting
a foreign currency
loan in Australia,
we will provide
to you a general
warning in writing
of the risks arising
from exchange rate
movements and will
inform you
of the availability
of mechanisms, if
they exist, for limiting
such risks.
We
acknowledge that,
in addition to our
duties under the Privacy
Act 1988, we
have a general duty
of confidentiality
towards you,
except in the following
circumstances:
(a)
where disclosure
is compelled by
law; or
(b)
where there is a
duty to the public
to disclose; or
(c)
where our
interests require
disclosure; or
(d)
where disclosure
is made with your
express or implied
consent.
24.1
We will give
you a statement
of all transactions
relating to your
deposit account since
the last statement
at least every 6 months
unless:
(a)
the deposit account
is a passbook account;
or
(b)
it has been agreed
that:
(i)
some other method
will be used to
record the transactions;
or
(ii)
a statement need
not be provided;
or
(c)
no amount has been
debited or credited
to the account during
the statement period
(other than debits
for government charges,
or duties, on receipts
or withdrawals);
or
(d)
we are unable,
after taking reasonable
steps, to locate
you.
24.2
You may ask
for more frequent
statements of account
on a deposit account.
24.3
Even if you
are in default, we
will give you
a statement on a loan
account if it is practicable
for us to do
so. However, if it
is not practicable
(for example, because
automatic statement
generation is not
available on defaulted
accounts) we
will inform you
about the availability
of statements, and
the method of requesting
them, and we
will provide you
with statements on
request, in a timely
manner.
24.4
If you are
a small business,
or an individual,
whose loan or other
credit account is
not regulated by the
Uniform Consumer Credit
Code, we will
give you a
statement of transactions
on your account
in accordance with
the Uniform Consumer
Credit Code:
(a)
if that Code would
have applied to
the provision of
credit to you
had you been
an individual and
acquired the credit
wholly or predominantly
for personal, domestic
or household purposes;
and
(b)
unless the nature
of the banking
service is such
that it would be
impractical to apply
the Uniform Consumer
Credit Code provisions
to the facility.
