Account switching law introduced by Greens

The Greens' banking spokesman, Adam Bandt, will move to introduce a bill that would force banks to re-route all direct debits and credits to the customer's new account for 13 months after they changed banks.

Mr Bandt said, “There are real benefits for consumers and for businesses when people can switch easily.”

“It's often the case that direct debits, in particular, can lapse because people forget to change them over, and this has flow-on costs for businesses and sometimes the customers.”

The onerous paperwork required when changing banks was identified by consumer group Choice as the main reason most people pick one and stay with it.

Source: Sydney Morning Herald