Commonwealth Bank of Australia has suggested the telecommunications companies share the load when scams are perpetrated by phone call or SMS, arguing the new code needs to cover all players in the system. But Mr Brody said consumers had a right to expect their bank would be their point of contact for compensation.
“The consumer complaint is going to be against the bank. If the banks want to follow through with the telco, they should do it themselves, not direct the consumer to go through a convoluted process,” he said.
Australia lags on laws
The telecommunications companies are subject to the Reducing Scam Calls Code, administered by the Australian Communications and Media Authority. In a recent speech, ACCC chairwoman Gina Cass-Gottlieb said the code had led to a 50 per cent fall in scam calls and 357 million scam calls being blocked in its first year.
Mr Brody said Australia remained a laggard on regulation in this area, after Britain moved to legislate the contingent reimbursement model code, which he said obliged signatory banks to have systems in place to protect victims.
“The UK government just introduced legislation to mandate it and the payments system regulator there has the power to mandate banks reimburse customers,” he said.
The Australian Banking Association responded to the ACCC calls for banks to do more to prevent scams, launching a public awareness campaign with 13 of its biggest members.
Australian banks have resisted calls to conduct mandatory checks…
