Big banks must be clear on gag clauses

MARCH 27, 2018: THE big four banks must make it clear to customers and employees that they can make submissions to the current banking royal commission without fear of any repercussions.I am calling on the banks to put a statement to that effect on the front page of their websites to confirm that they will not enforce any gag clauses and there will be no ramifications whatsoever, either during the royal commission or after.There was certainly a concern that any bank customers who had signed confidentiality agreements with banks would be bound by those agreements and could therefore not risk speaking up about poor treatment and unconscionable conduct.I understand that the smaller banks and more recently the big four banks have been reported in the media as saying that any such confidentiality agreements would be waived.However there are also reports that one bank made the veiled threat that customers should “consider the consequences of doing so”.If banks are honest in their intentions to allow people to speak they need to do more than just say so to the media.Bank customers who have stories to tell about how they’ve been treated fear reprisals.And they don’t want to engage in any more legal disputes.To give a very clear assurance to such customers that this will not happen, I urge all banks to put a short and clear statement on the front page of their websites to reassure customers, and indeed their own employees, that they are free to speak and they will not be punished in any way for doing so.I fought for the establishment of such a commission of inquiry so that people who have been put through hell by financial institutions can have their say so I don’t want to see anything hinder them from this critical opportunity.The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is currently underway and all submissions can be made through the website at https://financialservices.royalcommission.gov.auThe Commission must present an interim report to the Governor-General by September 30 this year, and a final report by February 1 2019.