Investigative committee shames ANZ over ‘deeply concerning’ action
By
Seia Ibanez
- Replies 15
In a revelation that has shocked the banking community, ANZ, one of Australia's Big Four banks, has been caught in a serious breach of trust and ethics.
The bank has been sanctioned for charging fees to the estates of deceased clients, a practice that is as insensitive as it is alarming.
This distressing news serves as a stark reminder of the importance of vigilance in managing the financial affairs of our loved ones, even after they have passed away.
The Banking Code Compliance Committee (BCCC), an independent body overseeing banks' adherence to the Banking Code of Practice, has publicly named and shamed ANZ for this violation.
The bank was found to have failed to cease charging fees or to refund those already charged to customers' estates post-mortem.
Furthermore, ANZ’s failed response to requests for information from representatives of the deceased, which should be addressed within 14 days as per regulatory requirements, added to the gravity of the situation.
ANZ first identified the issue in 2022, yet it took the bank over a year to implement solutions and another year to kickstart its ongoing customer remediation program.
Ian Govey, the chair of the BCCC, expressed deep concern over the deficiencies in ANZ's compliance frameworks.
‘The significance of the deficiencies in ANZ’s compliance frameworks was deeply concerning,’ Govey said.
‘Its non-compliance warranted such a sanction.’
In response to the backlash, ANZ's Service Operations Manager, Dan O’Neil, acknowledged that the bank had failed to provide the compassionate and timely support that customers and their families ‘rightly’ expect.
‘We know we have not always met the expectations of our customers and their families at a difficult time in their lives,’ he said in a statement on Tuesday, 2 July.
‘For this, we are sorry and we are committed to continuing to make changes to better support our customers.’
While ANZ has since reimbursed many affected estates, the BCCC criticised the bank for not acting swiftly enough.
It's worth noting that another unnamed bank was also found to have charged fees to deceased estates but was spared public censure due to its reasonable timeframe in resolving the issue.
The committee is currently investigating a third bank for similar misconduct.
Have you or someone you know experienced similar issues with a bank regarding handling a deceased loved one's estate? Share your experiences and any advice you might have in the comments below.
The bank has been sanctioned for charging fees to the estates of deceased clients, a practice that is as insensitive as it is alarming.
This distressing news serves as a stark reminder of the importance of vigilance in managing the financial affairs of our loved ones, even after they have passed away.
The Banking Code Compliance Committee (BCCC), an independent body overseeing banks' adherence to the Banking Code of Practice, has publicly named and shamed ANZ for this violation.
The bank was found to have failed to cease charging fees or to refund those already charged to customers' estates post-mortem.
Furthermore, ANZ’s failed response to requests for information from representatives of the deceased, which should be addressed within 14 days as per regulatory requirements, added to the gravity of the situation.
ANZ first identified the issue in 2022, yet it took the bank over a year to implement solutions and another year to kickstart its ongoing customer remediation program.
Ian Govey, the chair of the BCCC, expressed deep concern over the deficiencies in ANZ's compliance frameworks.
‘The significance of the deficiencies in ANZ’s compliance frameworks was deeply concerning,’ Govey said.
‘Its non-compliance warranted such a sanction.’
In response to the backlash, ANZ's Service Operations Manager, Dan O’Neil, acknowledged that the bank had failed to provide the compassionate and timely support that customers and their families ‘rightly’ expect.
‘We know we have not always met the expectations of our customers and their families at a difficult time in their lives,’ he said in a statement on Tuesday, 2 July.
‘For this, we are sorry and we are committed to continuing to make changes to better support our customers.’
While ANZ has since reimbursed many affected estates, the BCCC criticised the bank for not acting swiftly enough.
It's worth noting that another unnamed bank was also found to have charged fees to deceased estates but was spared public censure due to its reasonable timeframe in resolving the issue.
The committee is currently investigating a third bank for similar misconduct.
Key Takeaways
- ANZ has been sanctioned for charging fees to the estates of deceased clients, which is a serious breach of banking regulations.
- The Banking Code Compliance Committee investigated the issue and has publicly named ANZ for not acting swiftly to stop charging fees or refund those charges after the death of clients.
- ANZ acknowledged the problem, apologised for not meeting expectations, and is committed to making changes to better support customers and their families.
- Another bank was found to have charged fees to deceased estates but was not publicly named after resolving the issue quickly, and a third bank is currently under investigation.