The ACCC has issued a draft determination proposing to authorise, with conditions, the Australian Banking Association’s member banks to make agreements relating to basic accounts and default interest charges on agricultural loans under the Banking Code of Practice.

The proposed conditions of authorisation broadly require:

• member banks to not charge interest on informal overdrafts, or alternatively to refund any interest charged on informal overdrafts on basic, low or no fee accounts;
• member banks to at least once annually, take reasonable steps to identify and directly contact existing customers who are, or may be, eligible for a basic, low fee or no fee accounts and who do not already hold a basic, low fee or no fee account; and
• the ABA to report to the ACCC on informal overdrafts that occur in certain circumstances without customers’ agreement, any change in the number of member banks offering basic accounts, steps taken by member banks to identify customers eligible for basic, low or no fee accounts, and the uptake of these accounts.

Basic accounts have the following minimum features:

• no account keeping fees;
• free periodic statements;
• no minimum deposits (except that customer may be required to have their government benefit payment paid into this account);
• free direct debit facilities;
• access to their choice of a widely accepted debit payment method (including a debit card) at no extra cost;
• free and unlimited Australian domestic transactions.

The ACCC granted interim authorisation with conditions on 4 December 2024, and it will remain in place until the date the ACCC’s final determination comes into effect or until the ACCC decides to revoke interim authorisation.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

Author: David Jacobson
Principal, Bright Corporate Law
Email:
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.