Information about a New Account Switching Process

What changes are occurring?

From 1 July 2012, customers who open a new personal bank account will have the option of requesting their new financial institution (FI) to obtain a list of their last 13 months of credits and debits from their old FI.

The customer can then request their new FI to help them notify DE users of their new bank account details; as is available to customers today.

Customers will also be able to ask their new FI to cancel a direct debit arrangement with a DE user if necessary.  Until now the customer would have had to make this request via their old FI or contact the DE user directly.

These changes are being implemented across the entire Australian banking industry.

Will these changes affect me/my organisation?

You may receive an increased volume of Notice of Variation of Account Details forms upon commencement of this new switching process.  In some instances you may not have been receiving these forms previously, since these forms have been used by only a limited number of consumers.

You may also begin to receive the newly created Direct Debit Cancellation Request form.

What should I do if I receive a Notice of Variation of Account Details form from CBA?

Please verify that the contact details and previous bank account details provided on the Notice of Variation match your records for that customer; this form must be signed by your customer.   Then promptly update (within 3 business days) the customer’s bank account details in your systems to ensure there is no disruption to the customer’s payment cycle.  Once you have updated your records please notify your customer of this.

This is an example of a Notice of Variation of Account Details form.  Note CBA may forward to you a form originating from another FI, since your customers are likely to bank with a range of FIs.

What should I do if I receive a Direct Debit Cancellation Request form from CBA?

Please verify that the contact and bank account details provided on the Cancellation Request match your records for that customer; this form must be signed by your customer.   Then promptly cease initiating direct debits on this customer’s bank account to ensure no erroneous debits are made.  Once you have suspended debits to this customer’s bank account, please notify the customer of this.

This is an example of a Direct Debit Cancellation Request form.  Note CBA may forward to you a form originating from another FI, since your customers are likely to bank with a range of FIs.

Will I receive Notice of Variation of Account Details or Direct Debit Cancellation Request forms from any other FIs?

Not unless you have a separate banking arrangement(s) with another FI(s) who also sponsors you into the Bulk Electronic Clearing System (BECS) as a DE user.

What if I receive a Direct Debit Cancellation Request form from a customer who is still under contract with me/my organisation?

Please contact the customer directly to arrange an alternative method of payment (if not already arranged).

What should I do if I receive a Notice of Variation or Cancellation Request and it has insufficient information for me to process?

Please contact the customer directly.

Isn’t there an account switching process already in existence?

The existing account switching process allows a customer to request a list of their last 13 months’ credits and debits from their old FI. The customer can then ask their new FI to assist them to notify DE users of their new bank account details.

This process has been used sparingly. Accordingly, you as a DE user may not have received many (or any) Notification of Variation of Account Details forms via this existing process.

Can customers continue to contact me/my organisation directly to inform me of changes or cancellations to their payment arrangements?

Yes, many customers will continue to contact you directly.  Some customers may request their FI’s assistance to do so.

Is there any change to the process for me/my organisation to establish a direct debit request or direct credit arrangement?

No.

 

Should you require further information please contact your Account or Relationship Manager.

Message to DE users from the Treasurer Wayne Swan about the changes to account switching.