Swan brings in bank 'tick and flick'
By
Ben Abbott
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22/08/2011 5:15:00 AM
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6
comments
Federal Treasurer Wayne Swan has said the government will give consumers the ability to switch deposit accounts "with the stroke of a pen", in announcing a plan to ease account movements.
The measure, which the Treasurer said in his announcement will remove the burden of having to change the details of automatic debit and credit transactions - thereby making it easier for consumers to swap banks - is to be finalised after industry consultation by 1 July 2012.
"Customers will sign just one form that authorises their new institution to do all the heavy lifting for them," the Treasurer said. "The new institution will arrange the transfer of all automatic transactions linked to the customer's account and inform associated creditors and debtors about the new details."
The statement came with the release of a report authored by Reserve Bank governer Bernie Fraser, which investigated options available for increasing account tranferability between banks.
Following the report, Swan stopped short of adopting account number portability, which he said "would not deliver enough benefits to justify the huge costs it would impose on business and consumers".
However, he said the initiative would give consumers the power to easily switch to another bank, building society or credit union to seek out better value and service. "It will take the headache out of switching bank accounts, encouraging consumers to seek out the best deal on their savings."
Swan said the reform builds on the banning of mortgage exit fees, and that it would be reviewed after two years.
Latest Comments
Total:
6
comment(s)
JD on
22 Aug 2011 12:11 PM
It would be great if the governement made it just as easy to "flick" the government every time they stuffed up and wasted tax payers money. The pen would have run out of ink!!
Paradime on
22 Aug 2011 12:11 PM
Wayne, It will only be reviewed in 2 years if the coalition decides to review it because you won't be around then.
WhistleBlower on
22 Aug 2011 12:41 PM
Must admit, I love the way Politicians drag out lame News and plant it in the media to cover one of their own who's 'allegedly' been thieving tax-payer funds on his Union Credit Card.
Good one Swannie... and on a Sunday, awesome job.
Chris C on
22 Aug 2011 01:14 PM
Everything else Swannie has done, ends up playing right into the banks coffers and costing us a fortune, wonder how much this one will cost us. Banks will not do all this work for free. Lower deposit rates / higher fees / or higher loan rates and fees across the board to compensate.
mortgageandlease on
22 Aug 2011 01:30 PM
How is it supposed to work? BSB will still have to be changed or we will have payments bouncing everywhere?
As usual, some sort of spin to take off the Labor Government's ineptness in most areas.
I really can't see how this will work.
sidbroker on
23 Aug 2011 11:46 AM
To mortgageandlease, Has anything ever worked that any labor govt. has done? Possibly their credit cards do when some of the mp`s wish to enhance their lifestyle at the taxpayers expense!