Surge in Financial Hardship Violations Within Banking Sector
Surge in Financial Hardship Violations Within Banking Sector
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The latest reporting from the Banking Code Compliance Committee (BCCC) illuminates a striking rise in violations of financial hardship protocols among banks.
Over the first two quarters of 2023, the banking community has witnessed a near 40 percent increase in non-compliance incidents as per Part 9 of the Banking Code of Practice.
Several troubling incidents have come to light, where banks have not only been remiss in promptly addressing financial hardship requests but also continued with collection activities unchecked, and flouted agreements made to ease customer burdens.
Incidents reflecting the lack of adherence include: a notable bank's delay in addressing inquiries from seven customers-a lapse which cost them over $60,000, a customer's financial liaison being disregarded, culminating in over $10,000 in financial repercussions, and tardy responses to plea for financial hardship aid which dented a customer's credit report and lead to material losses exceeding $5,000.
Digging into the root causes of these compliance failures, the BCCC report identifies human oversights, procedural inadequacies, and technological shortcomings, accounting collectively for a whopping 94 percent of the breaches.
With respect to identifying such breaches, institutions discovered half through frontline monitoring and quality checks. In a notable trend, nearly a third of banks found over half of their infractions through direct customer feedback and complaints.
A closer look at the breaches with the most significant financial ramifications paints a stark picture: one prominent bank's flawed loan repayment setup led to a staggering $12 million of financial implications-while an investigation to ascertain the breadth of the impact is still ongoing; erroneous extra interest levied on home loans due to incomplete offset data, hitting the bank's coffers by $2.3 million and affecting numerous customers; and the wrongful authorizations for peripherals to spend on client accounts post-termination, causing $2.1 million in damages implicating thousands.
Despite these figures, the banking sector is actively engaging in corrective measures and enhancing oversight mechanisms to prevent recurrences and rebuild trust among consumers.
Published:Monday, 26th Feb 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The 56th Sydney International On-Water Boat Show recently concluded after four dynamic days at Darling Harbour, drawing over 20,000 visitors and highlighting the latest advancements in marine design and technology. Presented by the Boating Industry Association (BIA) and Mulpha Events, the event featured more than 160 vessels from 120 leading international and Australian marine brands. - read more
The Australian truck and van market has experienced a notable decline in 2025, with sales figures indicating an 11.8% decrease compared to the previous year. According to the Truck Industry Council (TIC), a total of 33,727 heavy vehicles were sold by the end of September, marking a significant drop from the 38,254 units sold during the same period in 2024. - read more
In a landmark move towards sustainable transportation, Scania has delivered its first battery electric truck to Total Logistics Solutions (TLS), a prominent Australian logistics provider. The Scania 25 P, a 10-pallet curtainsider equipped with a powered tailgate, is set to revolutionise urban deliveries by eliminating tailpipe emissions. - read more
The Australian Trucking Association (ATA) has proposed a comprehensive $5 billion investment in targeted road upgrades over the next decade. This initiative is designed to support the adoption of high-productivity and low-emission trucks, thereby enhancing the efficiency of the transport sector and contributing to a reduction in the cost of living for Australian households. - read more
In a significant development for Australia's shipbuilding industry, the Australian government has approved South Korean conglomerate Hanwha's proposal to increase its shareholding in Austal Limited from 9.9% to 19.9%. This decision comes with stringent conditions aimed at protecting national security interests. - read more
Expanding your truck fleet is a critical step in driving business growth. For many small businesses, increasing the number of commercial vehicles means accessing new markets, delivering goods more efficiently, and ultimately, boosting profitability. In the competitive Australian market, staying ahead requires not just maintaining but expanding your transport capabilities. - read more
Maintaining your truck is essential if you want to prolong its lifespan and save money down the road. Australian conditions can put a lot of strain on your vehicle, and neglecting its maintenance can lead to costly breakdowns and repairs. - read more
When purchasing a truck, whether for personal use or business, navigating the financial landscape can be daunting. This is where pre-approval comes into play. But what exactly does pre-approval mean in the context of buying a truck? - read more
Getting the right truck loan can be essential for business owners who rely on commercial vehicles. These loans cover a variety of commercial vehicle types and are crucial for ensuring your business operations run smoothly. Truck loans, specifically, provide the necessary finances to purchase trucks, which are indispensable in industries like logistics and delivery services across Australia. - read more
Commercial trucks serve as the lifeblood of the Australian economy, providing vital links between industries and markets across the vast landscapes. The importance of these heavy-duty vehicles cannot be overstated, as they are pivotal in ensuring the smooth operation of both urban and rural businesses alike. Engaging in the commercial truck market is a significant investment, and understanding the ins and outs of financing such a purchase is crucial for business success. - read more
Start Here
Get a free truck loan eligibility assessment and compare truck finance and leasing options
without accessing your credit file!!
Knowledgebase
Loan Application Fees: Fees that are charged to cover or partially cover the lender's internal costs of setting up a loan approval for a home buyer.