the ability of customers to appeal adverse decisions to internal customer advocates in April 2020, while Westpac and the Commonwealth Bank followed suit in late last year.
Accordingly, the Australia and New Zealand Banking Group (ANZ) on Thursday (2 September) became the last of the big four banks to scrap the role of the customer advocates, on account of fears that they may run out of time in deciding claims under the revised guidelines of the ASIC. “The consumer lending terms and conditions are being updated to remove the customer advocate as a review option if you make a complaint or have a dispute with ANZ and are not satisfied with our resolution of your complaint,” the multinational financial service provider said in email to its home loan customers.
A few years ago, many banks in Australia hired internal customer advocates to whom unhappy clients could appeal adverse decisions. Therefore, the removal of their role could result in more complaints going to the independent Australian Financial Complaints Authority (Afca), thereby extending the time taken to resolve these complaints.
Following the revision of guidelines Australian Banking Association (ABA) revealed that it had raised its concerns regarding the modified guidelines to the ASIC. “The ABA raised its concerns and opposition to ASIC [the Australian Securities and Investments Commission] requiring a 30-day timeframe for internal dispute resolution because of its impact on the important role consumer advocates play, however it made its decision,” a spokesperson for the trade association said. “To meet the new requirements, ABA member banks are updating their policies and communications in preparation.”
