David Johnston (WA, Liberal Party, Shadow Minister for Defence) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Financial Services and Superannuation, upon notice, on 29 September 2010:

Is there a prescribed level of quality control on recovery procedures; (a) if so: (i) can details be provided of where this is documented in the form of a formal manual; and (ii) how and when banks and lending institutions that do have a formal process or manual are certified; and (b) if not, why not.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

The Minister for Financial Services and Superannuation has provided the following answer to the honourable senator's question:

The Australian Bankers Association Inc has released the Code of Banking Practice. This Code notes that in respect of debt collection, the banks will comply with the Australia Competition and Consumer Commission's guidelines "Debt Collection and the Trade Practices Act" (now called the Competition and Consumer Act 2010). The Code requires banks to participate in a Code Compliance Monitoring Committee to monitor the banks compliance with the Code. The guidelines set out the rules regarding: what a debt collector can do with a debtor's personal information, how a debt collector can contact a debtor (including debtors with a special disadvantage) and the role of independent external dispute resolution schemes. The Commonwealth also has in the Competition and Consumer Act 2010 laws to prohibit the use of physical force, unconscionable conduct, undue harassment and coercion in debt collection.