Code of practice for E.F.T. cards adopted

Press, 12 May 1987, Page 2

Code of practice for E.F.T. cards adopted

PA Wellington A code of practice has been formally adopted for the issue and use of Electronic Funds Transfer (E.F.T.) cards, the Minister of Consumer Affairs, Mrs Shields, announced yesterday.

Mrs Shields said the code set out a basic framework to ensure “the fair division of rights and obligations between cardholders and card issuers.” It includes a commitment by signatory card issuers to produce contracts that are clear and easily understood; to provide a 24-hour service for the reporting of lost or stolen E.F.T. cards; and to

give advanced personalised warning of changes to E.F.T. contracts. The code also limits the liability of card holders who are not at fault to a maximum of $5O. Card issuers will no longer be able to avoid liability for system malfunctions through exemption clauses in their contracts.

A feature of the code unique to New Zealand was the agreement to create a group of independent E.F.T. referees to settle disputes that could not be resolved at the counter, Mrs Shields said. “This aspect of the code is a good example of how

the position of. the card holder has been significantly improved,” she said.

Signatories to the code include trading and trustee banks, the Post Office Bank, the United Building Society, A.T.M. Anytime, Ltd, (terminal network managers) the Ministry of Consumer Affairs, the Computer Society, the Consumers’ Institute, community law centres and Citizen Advice bureaux.

“The advantage of the code ... is that it does not hinder technological growth but ensures the protection of individual consumers," Mrs Shields said.