Banks do make lots of mistakes …

Banks need to do a better job monitoring their IT systems to ensure customers are not the victims of over-charging and other breaches, says the Code Compliance Monitoring Committee in a review of breaches of the Code of Banking Practice.

Banks reported 16 significant breaches of the Code during the year to June – double the number in the previous year. These breaches affected 150,000 customers, with a total estimated financial impact of $13 million.

Significant breaches included a bank charging the wrong interest rate to its credit card customers, a bank charging ongoing financial advice fees when no advice was provided, failure to provide product disclosure statements where required and products being sold by staff not qualified to sell them.

Source: Banking Day

Advertisement