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Ramsay gets more power for bank compensation scheme

by Paul

The government has sharpened the teeth of its review into bank dispute resolution by asking it to make firm recommendations on a compensation scheme of last resort including providing redress for past disputes.

The move comes as a submission released by the banks on Thursday shows they are seeking to limit access to external dispute resolution (EDR) schemes by narrowing the definition of small business and restricting the size of disputes going into the schemes, which are designed to be friendlier to claimants.

The broadening of the terms of reference for the review being led by Melbourne University professor Ian Ramsay into EDR schemes comes after the government released a report by small business Ombudsman Kate Carnell which criticised the power given to banks by standard credit contracts and called for more protections for business borrowers.

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