Report finds banks mishandle deceased estates

An inquiry into handling of deceased estates has found instances of poor practice and non-compliance with the Banking Code of Practice among the six banks in the study.

“Managing the affairs of a loved one who has passed away is difficult. Unfortunately, our inquiry found practices that were contributing to the difficulty of managing a deceased estate,” the Independent Chair of the Banking Code Compliance Committee (BCCC), Ian Govey AM, said.

The inquiry’s report said the poor practices and non-compliance fell into three categories:

• Fees and charges for services no longer provided – Banks continuing to apply fees and charges to accounts of deceased customers despite being notified of their passing.

• Failing to act within timeframes – Banks failing to act on requests or instructions within the obligatory 14 days of receiving the necessary information.

• Lack of respect and compassion – Banks failing to treat representatives and family of deceased customers with the respect and compassion expected in the circumstances.