Draft Determination – Application by the Australian Banking Association
We provide the following comment on Draft Determination AA1000683 in response to the Australian Banking Association’s (ABA) application to continue offering Basic Bank Accounts (BBAs) and certain conduct related to agricultural loans.
We refer to our previous submission of 27 November 2024 and reaffirm our comments on the importance of both the authorised conduct and the conditions of authorisation. The Australian Securities and Investment Commission (ASIC) identified significant harm in its Report 785 – Better Banking for Indigenous Customers, including $6 million inappropriately charged in fees to eligible customers over a 12-month period. This occurred during the period of the previous authorisation indicating poor levels of compliance with the previous conditions.
Maintaining the spirit of the authorisation conditions is essential to
prevent further harm to low and no-income customers and prevent a further decline in compliance, particularly given the exclusion of any similar obligations from the new Banking Code of Practice
Read the full submission (PDF).
Draft Determination – Consumer Action