Skip to main content
Financial Assistance Hub

South Australian customers protected by new rule book for banks

7 February 2020

The Australian Banking Association has today partnered with Business SA to brief the local business community and stakeholders on the rights and protections contained in the new Banking Code of Practice.

In force since July 1 last year, the new ASIC-approved Banking Code of Practice contains a big step up in protections for customers.

Under the new Banking Code of Practice, banks no longer:

  • Offer unsolicited credit card limit increases
  • Charge commissions on Lenders Mortgage Insurance
  • Sell insurance with credit cards and personal loans at the point of sale.

Under the new Code banks must:

  • Offer low-fee or no-fee accounts to low income customers
  • Have a 3 day grace period on all guarantees to give guarantors enough time to make sure it’s the right option for them
  • Actively promote low-fee or no-fee accounts to low income customers
  • Provide reminders when introductory offers on credit cards end
  • Provide simpler and fairer loan contracts for small business using plain English that avoids legal jargon
  • Provide customers a list of direct debits and recurring payments to make it easier to switch banks.


“Banks have listened to community concerns and released a new rule book for banks, the Banking Code of Practice, which is a major step up in protections for customers.”

Anna Bligh

The briefing will outline the support on offer for customers and businesses who have been affected by the recent bushfires. Anyone affected is encouraged to contact their bank to access the support they need.

The ABA will also brief the business community on the ‘financing your small business’ website designed as a ‘step by step’ guide on applying for finance.

CEO of the Australian Banking Association Anna Bligh said “small businesses are the lifeblood of local economies, providing jobs and services across the community.

“Banks have listened to community concerns and released a new rule book for banks, the Banking Code of Practice, which is a major step up in protections for customers.

“Today is also an important opportunity to hear from local businesses directly as there’s no substitute for talking face to face and hearing about issues firsthand,” she said.

Martin Haese, Business SA CEO said “Business SA welcomes the details announced in the new Banking Code of Practice and supports the changes which should help businesses to operate more efficiently, perform better and grow.”

ENDS
Contact: Rory Grant 0475 741 007

Read more about the new Banking Code

Latest news

1 / 3
Media Releases
Banking productivity measures to help boost competition and benefit customers
23 October 2026

Banks welcome Treasurer Jim Chalmers’ release today of draft regulations to lift the cap on covered bond issuance, a practical step that would help small and mid-tier banks access cheaper, more stable funding. ABA CEO Simon Birmingham said these changes, including streamlined reporting for smaller banks, are a welcome part of the Government’s broader productivity… Read more »

Read more
Media Releases
Banks welcome calls for regulation that backs growth
21 October 2026

Banks have welcomed Shadow Treasurer Tim Wilson’s call today for the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to give more weight to economic growth in their decision making. ABA CEO Simon Birmingham said regulation that supports growth is key to lifting productivity across the economy. “Banks want to… Read more »

Read more
Transcript
ABA CEO interview with ABC Afternoon Briefing’s Patricia Karvelas on the Australia-EU free trade deal
20 October 2026

E&OETV InterviewInterview ABC Afternoon Briefing19 October 2026 Topics: Australia-EU free trade deal, investment benefits Patricia Karvelas: Simon Birmingham is the CEO of the Australian Banking Association, but he’s a former finance minister in a previous coalition government. And our guest, welcome to the program. Simon Birmingham: Hi, Patricia. Good to be with you again. Patricia… Read more »

Read more