by Cam Lucadou-Wells
After decades of lobbying, South East Community Links is celebrating a vital change to make banking more accessible.
Last month, an updated national Banking Code of Practice was approved which for the first time enshrines a customer’s right to free access to a qualified interpreter.
SECL chief executive Peter McNamara said the hard-won gain had taken 30 years of “relentless advocacy”.
“This achievement reflects the hard work and dedication of many people.
“I want to especially thank the community who trusted us with their stories and challenges, which spurred us on to advocate for these changes.”
SECL senior financial counsellor Rachna Madaan Bowman said it was a “key enhancement” in the new code.
“These critical changes will ensure that millions of Australians who require language support, can access the financial service system with dignity and make informed decisions.”
The new version of the Australian Banking Association’s code of practice was approved by Australian Securities and Investments Commission (ASIC).
The code’s enshrining of interpreters, accessible information and National Relay Services to customers was a “great example of putting the customer’s needs at the heart of the process”, ASIC chair Joe Longo recently told an ABA conference.
But there were still “poor practices” in treating home-loan customers in hardship, he said.
Mr Longo cited a family violence victim whose request for hardship assistance took five weeks and two applications until it was approved.
He said lenders weren’t making it easy for customers to give a hardship notice, not communicating effectively or supporting vulnerable customers.
“Clearly, more needs to be done.
“The distress these issues cause people who are already in distress is one reason compliance with hardship obligations is an enforcement priority for ASIC in 2024.”
ABA chief executive Anna Bligh said the code provided a higher standard of consumer protections.
“This is a Banking Code with teeth.
“Customers can continue to take complaints to the Australian Financial Complaints Authority or the courts who can then take strong action when necessary.”
