Bank of Queensland has paid a $133,200 penalty following allegations from the ACCC it breached Australia’s Consumer Data Right Rules.
According to a statement from the Australian Competition and Consumer Commission (ACCC), Bank of Queensland allegedly breached the Consumer Data Right (CDR) Rules by failing to provide a service enabling consumers’ data to be shared.
Australia’s CDR launched on July 1, 2020 for the major banks, with all other banks required to share certain data July 1, 2021. But banks, not just the big four, had a very long time to prepare. The idea behind the CDR is one of ‘open banking’, allowing consumers to port their data from one bank to another.
As part of the rules governing the CDR (the Consumer Data Right Rules), financial institutions have to have a way for customers to get their data from bank one sent to bank two. As per the ACCC’s statement, under the CDR Rules, Bank of Queensland was required to be in a position to share data for financial products, including savings accounts, term deposits and credit cards, by July 1, 2021. The ACCC alleges that Bank of Queensland did not meet this obligation. The watchdog further alleges that the bank did not make the required services available until December 13, 2021.
“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,” ACCC commissioner Peter Crone said.
The ACCC said it closely monitors compliance with CDR obligations and provides support for participants to assist them in preparing for and entering the CDR program.
“If CDR participants do not comply with their obligations, the ACCC will consider taking enforcement action in line with the CDR Compliance and Enforcement Policy. This can include administrative outcomes, enforceable undertakings, infringement notices, suspension or revocation of accreditation, or commencing court proceedings,” the statement explained.
It is important to note that paying an ACCC infringement notice is not an admission of a contravention of the CDR Rules.