On 22 May 2019 the Australian Banking Association Inc (ABA) sought authorisation to implement, in the 2019 Banking Code, recommendations made in the Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry relating to informal overdrafts, dishonour fees, and default interest charged on loans secured by agricultural land. The ABA also sought authorisation to prescribe certain minimum requirements relating to basic bank accounts. The ABA proposes to bring all of these amendments into effect on 1 March 2020.
The ABA requested authorisation for a period of 10 years.
On 21 November 2019, the ACCC issued a determination granting conditional authorisation to the ABA for 5 years. Under the conditions, ABA member banks must either not charge interest, or refund any interest charged, on informal overdrafts on basic accounts held by eligible low income customers if the customer has not agreed to an overdraft facility. Banks must also proactively identify customers who may be eligible for basic accounts.
The ABA must also report to the ACCC on several matters; including any changes to the number of banks offering basic bank accounts, how often informal overdrafts are occurring on basic accounts held by eligible customers without the customer’s agreement, and the steps that banks have taken to contact existing customers who might be eligible for a basic account. These reports will be made available on the ACCC’s public register.
On 23 November 2020 the ABA requested, and on 3 December 2020 the ACCC agreed to, variations to reporting conditions. Further detail is available in the ABA’s variation request, and the ACCC’s decision regarding the request, available below.
|Applicant - request to vary reporting conditions ( PDF 619.54 KB )||23 Nov 2020|
|Applicant - request to vary reporting conditions ( PDF 145.16 KB )||11 Sep 2020|
|Request for Interim Authorisation ( PDF 128.33 KB )||7 Jun 2019|
|Application Received ( PDF 2.04 MB )||22 May 2019|
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|ACCC to Interested Parties re Draft Determination ( PDF 246.09 KB )||27 Sep 2019|
|ACCC to Interested Parties re Consultation Process ( PDF 259.67 KB )||28 May 2019|
|ACCC to Applicant re Reporting Conditions ( PDF 122.3 KB )||21 Dec 2021|
|ACCC to Interested Parties re Final Determination ( PDF 242.92 KB )||21 Nov 2019|
|ACCC to Applicant re Final Determination ( PDF 161.76 KB )||21 Nov 2019|
|ACCC to Applicant re Request for Further Information ( PDF 275.71 KB )||25 Oct 2019|
|ACCC to Applicant re Draft Determination ( PDF 245.31 KB )||27 Sep 2019|
|ACCC to Applicant re Request for Further Information ( PDF 331.92 KB )||21 Aug 2019|
|ACCC to Applicant re Request for Further Information ( PDF 271.4 KB )||15 Jul 2019|
|ACCC to Interested Parties re Interim Authorisation Decision ( PDF 252.12 KB )||11 Jul 2019|
|ACCC to Applicant re Interim Authorisation Decision ( PDF 252.64 KB )||11 Jul 2019|
|ACCC to Applicant re Material Excluded from Public Register ( PDF 247.32 KB )||5 Jun 2019|
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Submissions - before draft decision
|Applicant ( PDF 2.16 MB )||11 Sep 2019|
|Customer Owned Banking Association ( PDF 106.81 KB )||4 Sep 2019|
|Applicant ( PDF 1.53 MB )||2 Aug 2019|
|Consumer Action Law Centre, Financial Rights Legal Centre and Financial Counselling Australia ( PDF 443.53 KB )||25 Jun 2019|
|Banking Code Monitoring Committee ( PDF 225.11 KB )||25 Jun 2019|
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Submissions - after draft decision
|Applicant ( PDF 156.69 KB )||15 Nov 2019|
|Consumer Action Law Centre, Financial Rights Legal Centre and Financial Counselling Australia ( PDF 585.01 KB )||31 Oct 2019|
|Applicant ( PDF 339.85 KB )||31 Oct 2019|
|Applicant ( PDF 233.75 KB )||15 Oct 2019|
|Australian Financial Complaints Authority ( PDF 220.08 KB )||11 Oct 2019|
|Consumer Action Law Centre ( PDF 351.59 KB )||10 Oct 2019|
|Legal Aid Queensland ( PDF 226.6 KB )||8 Oct 2019|
|David Tennant ( PDF 144.48 KB )||8 Oct 2019|
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