STRATEGIC PARTNERS
January 23, 2002
AUSTRALIA -- The Australian Securities and Investments Commission has released for comment a draft good-practice guide on transaction-fee disclosure by banks, building societies and credit unions, according to The Age.com.
The guide discusses how institutions can meet and exceed legal provisions on fee notification, including before accounts are opened, when fees are changed, on financial statements and when using ATMs.
Among ASIC's key recommendations that exceed present laws is a suggestion that consumers should know as they use ATMs whether they could be charged a fee if the ATM is not in their card provider's network.
The draft guide was developed with institutions including the Australian Banking Industry Ombudsman, the Australian Bankers Association and the four big Australian banks, ANZ, National Australia, Commonwealth and Westpac.
According to The Age.com report, ABA chief executive David Bell said member banks would implement proposals for better fee disclosure on statements, Internet/telephone banking, ATM fees and electronic funds transfer surcharges.
Bell told The Age.com that banks were already complying with some aspects of the guide. For example, two banks were providing fee details on statements, reportedly with more to follow, and seven banks had agreed customers using "foreign ATMs" would be told of fees at the machine.
ASIC released its practice draft as the Reserve Bank considers an Australian Competition and Consumer Commission referral alleging a lack of transparency and competition regarding fees for processing EFT/POS and credit card transactions.
