Description of Conduct
The provisions in the 2022 Code that are the subject of COBA’s authorisation application include commitments to:
- not charge or only to charge at cost a fee, cost or interest (or rebate such fee or interest charged) in connection with the relevant products or services provided by COBA member institutions;
- dishonour credit card transactions that would result in a customer exceeding their credit limit by more than 10%;
- not require customers experiencing financial difficulty to access their superannuation to meet their loan obligations;
- restrict the circumstances under which the customer’s debt will be sold, particularly when the customer is experiencing financial difficulty or if the debt arose from violence or abuse;
- not take enforcement actions against the customer (including small businesses) or guarantor in connection with the customer’s loan in certain circumstances; and
- not include a general material adverse change default clause in small business loan contracts.
On 9 August 2022, the ACCC issued a determination granting authorisation until 19 August 2027.
On 6 October 2023, the ACCC issued a determination granting a minor variation to the authorisation to amend paragraph 91 of the Code to more clearly reflect the circumstances in which Code signatories will decline a credit card transaction that would result in the customer exceeding their credit limit by more than 10%. Authorisation, as varied, will remain in place until 19 August 2027.
- Customer Owned Banking Association
|Draft Determination and Interim Authorisation Decision