Save
We won’t charge dead people anymore, says banking lobby
Australia’s banks will change their code of practice so dead people and customers receiving no services are not charged fees.
We won’t charge dead people anymore, says banking lobby
Australia’s banks will change their code of practice so dead people and customers receiving no services are not charged fees.
The Australian Banking Association will overhaul the way the code of practice deals with managing a customer’s estate when they have died, and fees for no service across the industry.
The reforms, prompted by the banking royal commission, will be the first of several changes from the ABA. Others include seeking new changes to the Future of Financial Advice reforms of 2013, to further reduce the incentive of commissions in financial services.
“It has always been unacceptable for any organisations to charge fees without providing a service,” said ABA chief executive, and former Queensland premier, Anna Bligh.
“This announcement will put beyond the shadow of a doubt that this practice has no place in Australia’s banking industry.
“Banks will change the way they manage a customer’s account, proactively contacting them to confirm what services are required for their investments and only charging for those provided.
“This issue of charging fees without service, particularly when customers have recently died, was raised during the royal commission and identified as unacceptable.
“When someone loses a loved one, they need support and compassion as they finalise their loved one’s financial affairs. Charging ongoing advice fees to dead people is clearly unacceptable.”
The ABA said banks are currently working with customers to refund those charged a fee where no service was provided. Latest ASIC data indicates customers will receive more than $1 billion in refunds.
“In addition to these changes, the industry is supporting legislation to remove grandfathering provisions in relation to financial advice,” Ms Bligh said.
“This is another important piece in the puzzle of ensuring there are no conflicts for advisers.”
You can read the latest on the progress of the royal commission here.
Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more
Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more
Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more
Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more
Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more
Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more
Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more
Savings account
What might Virgin’s administration mean for your Velocity points?
Virgin’s administration isn’t likely to spell the end of the airline’s Velocity program, so it’s still worth holding on to those points balances, a credit card expert has advised. ...Read more
Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more
Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more
Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more
Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more
Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more
Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more
Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more
Savings account
What might Virgin’s administration mean for your Velocity points?
Virgin’s administration isn’t likely to spell the end of the airline’s Velocity program, so it’s still worth holding on to those points balances, a credit card expert has advised. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
