Banks takes on board Code of Practice concerns

InternetNZ - Banking industry takes on board Code of Practice concerns

Media Release – 30 June 2008

The New Zealand banking industry has revised its Code of Banking Practice following an in-depth period of consultation with InternetNZ (the Internet Society of New Zealand Inc) and advocacy group Consumer NZ.

“This is a significant win for people who use Internet banking services,” says InternetNZ’s Deputy Executive Director Jordan Carter.

The new Code, prepared by the New Zealand Bankers Association, comes into effect on 1 July 2008.

InternetNZ was concerned that the Code as worded put an unfair burden of responsibility on Internet banking users, tilting the playing field in favour of the banks to an excessive degree. Media organisations also campaigned on the issue.

Last August, InternetNZ suggested that several clauses in the internet banking section of the Code be amended to improve the safety of using Internet banking services.

The specific changes that InternetNZ suggested related to user liability for unauthorized transactions, the use of secure password facilities and ‘up-to-date’ computer security software.

InternetNZ also suggested that the Code be re-worded to clear up privacy concerns relating to the right of banks to access users’ home computers.

Carter thanks the Bankers Association for incorporating the Society’s proposed amendments. “They have taken account of our concerns, resulting in a revised Code that better protects the interests of users of Internet banking services.

“We are particularly pleased that the reference in the Code to banks reserving the right to request access to people’s computers to verify protective systems has been removed.

Carter says it is also pleasing that the revised Code affirms as a ‘guiding principle’ that banks will reimburse genuine victims of Internet banking fraud.

ENDS

© Scoop Media