CHOICE November 2023

It seems fitting that my final editorial for CHOICE is for a Shonkys edition, given the way that these awards have shaped my time at CHOICE. Fairness in the financial system has been a theme since my very first Shonky Awards, when we gave Cabcharge a gong for its outrageous 10% credit card surcharge. That was the start of a campaign that ultimately saw excessive charges outlawed in 2017. With the Commonwealth Bank’s Shonky ‘win’ in 2014, we shone a light on the financial advice scandals that saw many people lose their retirement savings. While the CBA wasn’t the only institution to have overseen a scandal, we were particularly irked by its slowness to recognise problems and compensate consumers, and by its lobbying to water down consumer protections. Little did…

Have you ever seen an ad on Google or Facebook that doesn’t look quite right? Maybe it had a strange URL, or something in the advertising copy that read strangely. It could be a scam ad. A new CHOICE investigation has revealed tech giants like Google and Meta are failing to stop scammers from advertising on their platforms. CHOICE found many examples of ads across Google, Facebook and Instagram promoting websites that showed all the telltale signs of scams. A lot of the promoted websites imitated popular Australian retailers like Lorna Jane, Country Road, Peter Alexander, Seed Heritage and Decjuba. Scams are becoming more and more sophisticated, and scammers have access to many of the same tools that legitimate businesses do – like online advertising. This means it can be…

ANZ has been fined $15 million after it admitted to misleading customers for several years about funds that were available in their accounts. The big four bank made the admission as the Federal Court found it had broken the law by falsely indicating customers with certain credit card accounts could make withdrawals of their “available funds” without incurring fees and interest. “Many ANZ customers relied on the account information displayed by the bank and were charged fees that were inconsistent with that information,” says Sarah Court, deputy chair of ASIC, which brought the legal action against the lender. The court found ANZ had often not cleared deposits into the accounts, leading to the available funds amount being larger than what was actually available for withdrawal without incurring charges. Between 2016…

ANZ home and contents insurance has been recommended by CHOICE in the past. However, the policy has had a revamp and it may not be as highly recommended in future. Overall, the policy now covers less than it used to. While some policy features are better, such as the inclusion of accidental damage, other features like artworks and jewellery have lower limits. Previously, ANZ was one of only two insurers that offered total building replacement. The policy covered a rebuild regardless of the surge in building costs and other factors, such as new regulations that require you to re-build to a higher standard. The new policy no longer offers total building replacement, and policyholders must now nominate a sum insured, with the policy offering a 25% underinsurance safety net to…

When a bank pays a big fine for ‘unconscionable conduct’, it generally means the bank knew its actions were wrong but kept them up anyway. That’s the story with NAB, which was recently ordered to pay a $2.1 million penalty by the Federal Court for charging unauthorised transaction fees. “NAB continued to charge fees when it knew it lacked any entitlement to do so and omitted to tell its customers of that wrongful charging,” says ASIC deputy chair Sarah Court. “It took NAB over two years to stop charging these incorrect fees, which was clearly unacceptable.” The cause of the problem was NAB’s “inability to manage its own computer systems”. The Justice in the case had even stronger words, saying the bank “unjustifiably advanced its self-interest whilst knowing that its…

In September, four years after the banking royal commission exposed scandal after scandal plaguing Australian financial institutions, the final remaining major recommendation from the commission was legislated by the federal Parliament. The Financial Accountability Regime (FAR) will introduce new accountability obligations on banks, insurers, and superannuation funds, with penalties for individuals who do the wrong thing. The regime means senior leaders of financial institutions can now be personally held to account for misconduct that occurs under their watch. Over the past four years, thousands of CHOICE members and supporters have used their voice to help get crucial banking reforms like this over the line – from signing the petition to fix the banks, to emailing their senators and sharing their stories. Together, we’ll keep fighting for fairer finance.…