The Australian Competition and Consumer Commission (ACCC) has confirmed BOQ paid a penalty of $133,200 after they were issued with an infringement notice for failing to provide a service enabling consumers’ data to be shared.
The CDR is a law which passed through Australia’s parliament in late 2019 and was first rolled out to banking in July 2020 for major banks.
In essence, it puts customers more in charge of their consumer data.
However, according to the ACCC, BOQ did not meet this obligation as required until 13 December 2021 which meant the bank’s customers were unable to share their CDR data for more than five months.
“Under the CDR, consumers have a right to safely and securely share certain data with accredited providers, including fintech firms and other third parties, who in turn can use that data to create better customised products and services for the consumer,” said Peter Crone, ACCC Commissioner.
“For the CDR to work effectively for consumers, participants including all banks must meet their data sharing obligations within the timeframes set by the regulations.
“In the current environment of rising interest rates, consumers benefit from greater access to information and tools to help them compare products and make informed decisions about switching banks, and the CDR assists this.”
When deciding whether to issue the infringement notice to BOQ, the ACCC said it had taken a number of factors into account including the number of customers impacted, the period of alleged non-compliance, and the steps it took to limit the duration of its non-compliance.
Mr Crone says the CDR is an important feature that must be followed correctly in order to work effectively for consumers.
“In the current environment of rising interest rates, consumers benefit from greater access to information and tools to help them compare products and make informed decisions about switching banks, and the CDR assists this,” he said.
Until 2021 there were just six brands who were Accredited Data Recipients, however cutting red tape made it easier to become one, and there are now reportedly in excess of 70 banks and other businesses part of the program.
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