The Government’s plan to introduce a low-cost banking tribunal to investigate the poor financial practices of Australia’s largest banks has been quashed, after an ‘expert review’ found it was not needed.
Prime Minister Malcolm Turnbull announced the tribunal in October, in response to growing pressure from Labor for a royal commission, as well as calls from members for a new consumer-focused tribunal.
The review of dispute resolution in the financial services sector is being led by Melbourne University commercial law professor Ian Ramsay. An interim report has found that a new tribunal is not needed and recommends a move away from tribunal structures.
Appearing on ABC Radio, Financial Services Minister Kelly O’Dwyer said that the Government’s focus was now on providing consumers with a single place for dispute resolution.
“When the Prime Minister was talking about a ‘tribunal’ he was talking about a ‘small-T’ tribunal, which was a catch-all for having a one-stop consumer complaints stop,” she said.
“One is far more legalistic, which means it is probably less consumer-friendly and that is a ‘Big-T’ tribunal.
“That makes it more difficult for consumers to engage, which is what the report has found,” she said.
What do you think? Is the review correct in quashing the new tribunal before it is implemented? Do we need a royal commission into the banking sector?
Read more at The Sydney Morning Herald.
Related articles:
Banks cashing in on ‘lazy’ customers
Malcolm Turnbull’s “toothless tiger”
Big banks secretly reduce term deposit ‘bonus’ rates
