Alert

On 3 October 2008 ASIC released an EFT Code Consultation Paper. It canvasses significant changes to the EFT Code.

Submissions

Submissions are due by 5 December 2008.

Reform date - 2009

Changes to the EFT Code (following the Consultation Paper submissions process) are proposed to become effective by mid 2009.

Mistaken payments

There will be further consultation on developing a mistaken payments solution (e.g if a payment using the ‘pay anyone’ function on Internet banking is made to the wrong person).

Subscribers/scope

In addition, further consideration is being given to how to make the EFT Code binding on all those involved in electronic funds transfers, as currently not all participants are subscribers to the EFT Code.

Key consultation points

The Consultation Paper proposes the following:

• refining the requirements for printed receipts (including to deal with privacy concerns)

• clarifying disclosure of surcharges charged by third party ATMs

• redrafting the EFT Code in plain English so it is easier to understand

• simplifying requirements for electronic notices

• establishing a consumer and industry round table to formulate a mistaken payments solution that does not require a person who makes a mistaken payment to take the unintended recipient to court to recover their funds. Further, the Consultation Paper proposes to consider systems changes to reduce the practical risk of mistaken payments being made

• introduction of a 6 year limitation period for making complaints under the EFT Code, and

• EFT Code review to take place only every 5 years.

Account switching

EFT Code changes requiring members to facilitate consumers ‘switching’ their transaction accounts between financial institutions are intended to be in force by 1 November 2008.

Please contact us for assistance with your submissions.