AUSTRALIAN FINANCIAL REVIEW – September 16, 2018By John C. MackeyPublished September 16 2018 8:50:25An Australian financial watchdog is warning banks that they are “at risk” if they continue to overcharge Australians for overseas transactions.
The Australian Competition and Consumer Commission (ACCC) has issued a warning to banks about their “unacceptable” behaviour and warned it will take action if they don’t stop it.
In a statement, the ACCC said it would “take further action” if banks failed to act within six months of receiving complaints about their overcharging of Australian customers.
It said banks had overcharged the Commonwealth Bank, Australian and Commonwealth Bank of Australia (ABCB) and the Australian Financial Services Company (AFSC) in the past and would continue to do so until they stop overcharging Australians.
“As part of the enforcement action announced today, the Australian Competition & Consumer Commission is taking further action to ensure banks have the ability to effectively conduct their business in accordance with the Australian Consumer Law,” the ACCCC said.
“Banks that continue to engage in conduct that breaches the Australian consumer law will be subject to greater penalties and be subject, as appropriate, to more stringent enforcement measures.”
In its statement, ASIC said the ACCSC had received six complaints about “unusual” overcharging by Australian banks.
The ACCC issued a public warning in October 2018, warning banks to stop overcharged Australian customers for overseas purchases by “making certain reasonable adjustments to their products or services”.
The ACCCC is the consumer watchdog of the Commonwealth and of the states and territories, and is responsible for enforcing consumer laws and consumer protection.