Truck Loans Australia :: News
SHARE

Share this news item!

Surge in Financial Hardship Violations Within Banking Sector

Surge in Financial Hardship Violations Within Banking Sector

Surge in Financial Hardship Violations Within Banking Sector?w=400

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.

Share this news item:

Finance News

CBA's Q1 2025 Profit: A Delicate Balance Between Growth and Margin Pressures
CBA's Q1 2025 Profit: A Delicate Balance Between Growth and Margin Pressures
18 Nov 2025: Paige Estritori
Commonwealth Bank of Australia (CBA), the nation's largest bank by market value, has reported a modest increase in its first-quarter cash profit for 2025. This uptick is primarily attributed to robust growth in home loans and household deposits. The unaudited cash profit stands at approximately A$2.6 billion, marking a 1% rise from the previous two-quarter average and a 2% increase compared to the same period last year. - read more
Major Banks Rethink Mortgage Strategies Amid Profit Margin Squeeze
Major Banks Rethink Mortgage Strategies Amid Profit Margin Squeeze
18 Nov 2025: Paige Estritori
Australia's leading banks-Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ-are actively reducing their dependence on mortgage brokers. This strategic shift aims to bolster profit margins that have been under pressure due to lower interest rates, rising operational costs, and intense market competition. - read more
Renewed Optimism: Australian Consumer Confidence on the Rise
Renewed Optimism: Australian Consumer Confidence on the Rise
18 Nov 2025: Paige Estritori
In November 2025, Australian consumer sentiment has turned optimistic for the first time since early 2022, marking a significant shift in public economic perception. The Westpac-Melbourne Institute survey indicates a 12.8% increase in the consumer sentiment index, reaching 103.8. A reading above 100 suggests that more consumers are optimistic than pessimistic. - read more
ASIC's Findings on Car Finance: High Fees and Early Defaults
ASIC's Findings on Car Finance: High Fees and Early Defaults
18 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about consumer protection and lending practices. - read more
Economic Pressures Drive Australians Towards Premium Used Cars
Economic Pressures Drive Australians Towards Premium Used Cars
18 Nov 2025: Paige Estritori
As Australians grapple with escalating living expenses, a notable shift is occurring in the automotive market. Consumers are increasingly turning to premium used vehicles as a cost-effective alternative to new car purchases. - read more
Click for more Finance News


Truck Loans Articles

Interest Rates, Terms, and Fees: What to Look for in Commercial Vehicle Loans
Interest Rates, Terms, and Fees: What to Look for in Commercial Vehicle Loans
Choosing the right commercial vehicle loan is a pivotal decision for any business aspiring to expand its transportation capabilities. For many, commercial vehicles are integral to daily operations, and securing the best financial arrangement to acquire these assets can significantly impact the bottom line. - read more
Understanding the Fine Print: What to Look Out for in Truck Loan Contracts
Understanding the Fine Print: What to Look Out for in Truck Loan Contracts
Stepping into the realm of commercial truck financing can be a highway riddled with complex terms and conditions. Understanding commercial truck loans is not only about getting the keys to a new vehicle; it's a crucial investment in your business's future. As a borrower, you need to navigate through the fine print to find a loan that fits like a glove. - read more
From Small to Big: Financing Your Truck Expansion in Australia
From Small to Big: Financing Your Truck Expansion in Australia
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
Essential Checklist for Commercial Vehicle Loan Approval
Essential Checklist for Commercial Vehicle Loan Approval
In the journey to secure a commercial vehicle loan, preparation is key. Just as a vehicle needs to be in perfect condition to hit the road, your loan application requires meticulous attention to detail to ensure a green light from lenders. This article embarks on the essential journey of understanding the critical checkpoints before applying for a commercial vehicle loan. We navigate through the path of prerequisites that pave the way for a seamless approval process. - read more
The Most Important Factors to Consider When Buying a Truck
The Most Important Factors to Consider When Buying a Truck
Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more


Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!
Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Discount Rate:
The interest rate used to determine the present value of future cash flows, often used in discounted cash flow analysis.