Banks welcome 'one stop shop' for resolving disputes: ABA
Staff reporterDecember 7, 2020
The newly created Australian Financial Complaints Authority, to begin operation on November 1, is a vital step to streamlining dispute resolution, according to a statement from the Australian Banking Association.
They believe it will make the dispute resolution process easier to access and easier to understand for customers.
CEO of the Australian Banking Association Anna Bligh said banks are strong supporters of external dispute resolution and supported streamlining the process to better help customers understand where they need to go if they have a complaint.
“A fast, free and binding service which deals with disputes outside of court is the best way for a customer’s issue to be heard and quickly resolved,” Ms Bligh said.
“AFCA will have increased powers including expanded scope to hear disputes from larger businesses and the ability to award compensation for direct and indirect financial loss and non-financial loss."
She stated, “the Banking Code of Practice will be used by AFCA as the new benchmark for industry practice, considering in its investigations if a bank has breached the Code and therefore its contract with the customer,” she said.
All ABA banks are members of the scheme therefore financially contribute to AFCA, which will ultimately be fully funded by contributions from the broader financial services industry.
