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Gov makes switching easier

Gov makes switching easier

(12 February 2008 – Australia) The Federal Government has announced measures planned to make switching banks easier. The government has said that the reason for the move was that there are currently too many administrative and other obstacles confronting Australians in changing banks.

Four bank switching initiatives have been developed in consultation with regulators, banks, credit unions, building societies and consumer groups.

Firstly, a listing and switching service, that requires banks to provide customers with accurate information of direct debits and credits, as well as help to re-establish these direct debits and credits.

Secondly is a single customer complaints hotline, for complaints about basic banking products, to be provided by Australian Securities & Investment Commission (ASIC).

Thirdly is a consumer education resource, a website providing advice on how to switch and the costs and benefits of doing so.

Finally, an ASIC led industry review of entry and exit fees that apply to mortgage accounts.

The move intends to put downward pressure on exit fees by increasing the ability to move if a customer is unsatisfied. The move comes amidst rising interest rates and the pressure of mortgage stress that goes with it.

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