Heritage members protected by new industry Code of Practice

Since February 1 2010, members banking with Australia’s largest building society are amongst the first Australians to be protected under a new Code of Practice for credit unions and building societies.

The new Mutual Banking Code of Practice, created by industry body Abacus in cooperation with the Mutual Banking sector, ensures that credit unions and building societies continue to be fair and ethical in the services that they offer to their members.

Heritage CEO Mr John Minz said that the Code, which draws on existing lending practices in the industry, guarantees that members will continue to receive the high quality services for which the Mutual Banking industry is renowned.

“The new Mutual Banking Code of Practice has been broken down into 10 key promises to which all accredited credit unions and mutual building societies must adhere,” he said.

“These include ensuring that all payment and exception fees are fair and not sending unsolicited offers for credit that members may not have the capacity to repay.”

In practice, credit unions and mutual building societies continue to take the lead where responsible lending is concerned.

Recent survey findings by consumer group Choice have sparked a call for customers to be aware of the finer details when applying for a credit card.

Subsequent media commentary surrounding credit card companies unfairly charging their customers questioned the services of the larger players in the banking sector.

Heritage, along with other mutuals, was named as one of the fairer credit card providers.

“Heritage has always ensured that it is fair and ethical to members and prudent in its approach to lending,” Mr Minz said.

“The new Mutual Banking Code of Practice simply puts in writing what we already practice - how we deal with our members and what they can except when banking with us.”

Heritage is committed to the Mutual Banking Code of Practice and its 10 key promises. These promises are:

  1. We will be fair and ethical in our dealings with you
  2. We will focus on our members
  3. We will give you clear information about products and services
  4. We will be responsible lenders
  5. We will deliver high customer service and standards
  6. We will deal fairly with any complaints
  7. We will recognise member rights as owners
  8. We will comply with our legal and industry obligations
  9. We will recognise our impact on the wider community
  10. We will support and promote this Mutual Banking Code of Practice

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.