It may never rival the popularity of the Da Vinci Code, but there is good reason why everyday banking customers will want to read the Code of Banking Practice
The New Zealand Bankers’ Association issued a statement applauding Hunt’s prosecution. NZBA chief executive Kirk Hope said at last year’s Financial Summit the banking industry had agreed with regulators and consumer groups that robust enforcement of existing consumer protection law was crucial to cracking down on rogue lenders who prey on vulnerable people.
n defence of lenders, Hope said it needs to be recognised by those critical of finance companies that the circumstances of borrowers (particularly those using credit facilities) can change from the time of the loan.
The New Zealand Bankers’ Association has encouraged bank customers to have a look at the latest Code of Banking Practice, which comes into force on 1 July. Now in its fifth edition, the Code provides a useful guide for customers and their relationship with their banks.
“The Code includes a whole lot of useful information about what banks will do for their customers. It covers things like getting credit, internet banking, and how you can protect your PINs and passwords.
“If you have a relationship with a bank, you need to know about the Code,” said New Zealand Bankers’ Association chief executive Kirk Hope.
The Code is reviewed every three years. “On the whole we found the Code is working well. We’re at the point where it gets updated to reflect good industry practice and to take into account new technology, rather than needing a major overhaul,” said Hope.
There are four main changes to the fifth edition:
- Mobile phone banking: The internet banking chapter has been updated to include the use of smart phones and mobile banking apps.
- Dispute resolution process: The dispute resolution process for customers has been clarified and reflects the fact there is now a range of dispute resolution schemes available to financial service providers.
- Accessibility: The Code is now available on all NZBA member bank websites as well as on the NZBA website. Print versions of the Code will continue to be available from bank branches.
- Wholesale customers: The Code has always focused on banks’ relationships with their retail customers. The new Code reflects this by expressly excluding wholesale customers from its target audience.
“The revised Code has been brought up to date to include innovations in banking services and is now clearly aimed at the retail customers it was always meant to help.
“It is one of the most comprehensive pieces of industry self-regulation operating in New Zealand. This industry initiative sets out at the very least what banks will do for their customers. It also complements more specific terms and conditions applying to particular products offered by banks,” Hope said.
Commerce Committee
The New Zealand Bankers’ Association today applauded the prosecution of third tier lender Barry Hunt for breaches of the Credit Contracts and Consumer Finance Act.
“This is a great result. We congratulate the Commerce Commission on a successful prosecution in this case,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“At last year’s Financial Summit the banking industry agreed with regulators and consumer groups that robust enforcement of existing consumer protection law is crucial to cracking down on rogue lenders who prey on vulnerable people. We need to target the problem where it lies.
“Banks are responsible lenders and we’re keen to see all lenders held to the same standards we already observe. It’s about fairness to consumers and applying existing regulations evenly across all lenders,” Hope said.
Hunt was prosecuted for a range of breaches including failing to specify the annual interest rates borrowers would pay, misleading customers about the method used to calculate the interest rate, and failing to disclose his full name and address.
HM Customs and Revenue (United Kingdom)
Bank lobby group the New Zealand Bankers’ Association has hit back at suggestions from property information provider Terralink that mortgagee sales are rising because of a “marked upturn” in the major banks forcing them, saying the total number of mortgagee sales last year was less than 0.2% of the total number of mortgages and there’s “no wholesale move” to sell people out of their homes.
he New Zealand Bankers’ Association revealed today that the number of mortgagee sales was less than 0.2% of the total number of mortgages held by New Zealanders.
In 2011 there were 2263 mortgagee sales, compared to over 1.2 million mortgages. “This is a tiny fraction of total mortgage numbers,” said New Zealand Bankers’ Association chief executive Kirk Hope.
While there were five more mortgagee sales across the country in the first quarter of 2012 compared to the previous peak first quarter of 2010, mortgagee sales have actually declined year on year from 3024 in 2009 to 2263 in 2011.
“It’s important to allay any concerns with a few facts. There is no wholesale move to sell people out of their homes.
“Banks work very hard with customers who find themselves in financial difficulty. People who are having trouble should speak to their bank as soon as possible.
“Banks are responsible lenders. Affordability is something all banks consider when making credit decisions. They ask relevant questions about your circumstances and the possibility of any change to those circumstances. It’s in your interests to be up front with banks so they can best help you meet your needs,” said Hope.
“The benefits to already responsible participants are not at all evident compared to the costs they are being asked to shoulder,” Hope said. While banks could pose a greater structural risk to the economy, Hope said the prudential risks of the sector were already being managed by the Reserve Bank. “At a structural level we’re talking about well regulated entities paying for the regulation of poorly run, failed finance companies.”