New guidelines for Banking - Australian Banking Association's Banking Code of Practice as of 1 March 2020

​The changes to the Code will make banking products easier to understand and more customer-focused, to better meet community standards and expectations. 
Here's a snapshot of what has changed.

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​New Code requirements include:

• Prohibiting charging default interest on distressed agricultural loans while farms are affected by drought or natural disaster;
• Providing inclusive and accessible banking services to those with limited English and those living in remote areas;
• Removing informal overdraft and dishonour fees on basic, low or no fee accounts for concession card holders;
• Introduction of 'basic accounts' with minimum features (including no account keeping fees, no minimum deposits, free direct debit facilities and access to a debit card);
• Clarifying restrictions on non-monetary defaults on small business loans (including a requirement to provide a notice specifying grounds of non-monetary default and specifying a reasonable time period to be remedied); and
• Extending protections to guarantors of small business loans (e.g. requirement for the bank to pursue the borrower before the guarantor, which previously only applied concerning consumer loans).

All consumers have the right to be treated fairly with these new codes in place, and the banks have been responsive in making improvements recommended by the Banking Royal Commission. 
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