Banking

ASIC regulates banks and financial service providers, sets and enforces banking standards and investigates and acts against misconduct in the banking sector. Find out how ASIC regulates financial services and what you can do to resolve any problems with your bank or bank account.

How ASIC regulates financial services

ASIC requires all financial service providers, including banks, to be licensed and meet their licence conditions.

We work to ensure that financial service providers:

  • act professionally, treat you fairly and prioritise your best interests
  • provide you with financial products that meet your needs
  • meet their responsible lending obligations
  • provider proper disclosure (information about products and services and any associated costs and conditions).

ASIC’s role is also to:

Find out how ASIC regulates lenders and credit card providers.

How the ePayments Code protects you

Users of electronic payment facilities in Australia are protected by the ePayments Code. ASIC is responsible for monitoring compliance with the Code. The Code regulates consumer electronic payments, including ATM, EFTPOS and credit card transactions, online payments, internet and mobile banking, and BPAY.

Almost all banks, credit unions and building societies in Australia – as well as consumer electronic payment facilities, such as PayPal – subscribe to the ePayments Code.

The Code:

  • requires subscribers to give people clear terms and conditions
  • outlines how terms and condition changes (such as fee increases, receipts and statements) need to be made
  • sets the rules on who pays for unauthorised transactions and how mistaken internet payments are recovered.

Find out more about the ePayments Code.

Errors on your account and mistaken payments

If you notice errors on your credit card or bank account statement that look like transactions you did not make, or if you have mistakenly transferred money to the wrong person, the ePayments Code sets out whether you are entitled to a refund.

Find out when you can when you can get your money back using the ePayments Code.

Switching bank accounts

The ePayments Code also places obligations on the financial institutions that subscribe to it, to help existing and new customers when they switch their accounts between financial institutions.

Your current bank can help you by providing you with a 13-month list of your direct debit, credit arrangements and periodical payments. Your new financial institution can help you to notify organisations with which you have direct debits, credit and periodical payments arrangements, to assist your move.

Find out more about switching bank accounts.

Problems with your bank or bank accounts

There are three steps to take to resolve issues with your bank or financial institution:

  1. Contact the bank - Explain the issue to them by phone, in person, or in writing.
  2. Make a formal complaint - If you are not happy with their response or if the problem can't be resolved, ask the bank for their complaints handling procedure or find it on their website. Put your complaint in writing and use MoneySmart’s sample complaint letters to find out what details to include.
  3. Complain to AFCA - If you don't receive a response in a reasonable time or you're unhappy with the response, you can make a complaint to the Australian Financial Complaints Authority.

Help for Indigenous consumers

For help with making your complaint, you can contact ASIC's Indigenous Help Line on 1300 365 957.

Banking codes of conduct

To progress your complaint, you could refer to the banking codes of conduct that have been developed by industry. A code of conduct (or code of practice) is a set of enforceable rules setting out an industry’s commitments to deliver a certain standard of practice.

Codes of conduct are intended to raise industry standards and complement legislative requirements (and in some cases go beyond the legislative requirements) and encourage consumer confidence.

Find more details on the banking codes of conduct:

If you believe that a bank has breached one of these codes, you can report your concerns to the Australian Financial Complaints Authority.

 

Last updated: 16/04/2019 05:10