The announcement comes weeks after NAB launched a new feature that automatically categorises these transactions, allowing customers to see all their subscriptions without trawling through statements.
- Westpac will now allow customers to immediatly cancel direct debits
- Customers can review all outgoing subscriptions and cancel unwanted ones
- Westpac will notify the company to action the cancellation
- CBA also announced a new program supporting the victims of financial abuse
Earlier this year, ING research found the average Aussie could be wasting $1,261 each year on unused subscriptions and forgotten payments.
Mandy Rutherford, Westpac Managing Director of Cash & Transactional Banking, said the bank wanted to make the process of cancelling unwanted subscriptions easier for customers.
"With 5.5 million of our customers actively using digital banking, we are giving them more choice in how they manage direct debits on their transaction accounts. Customers can now stop a payment for a future direct debit in their app, giving them greater control over their money,” Ms Rutherford said.
This will apply to all the banks in the Westpac group, including St George, Bank of Melbourne and Bank SA.
If a customer decides to cancel direct debits from a particular company, they can put a block on any outgoing payments for three years, or remove it permanently.
Westpac then contacts the company to action the cancellation, so the debt collectors aren't involved down the track once the money stops coming.
Commbank launches support programs for financial abuse victims
CommBank also announced a new program to help the victims of financial abuse recover.
CEO Matt Comyn announced Next Chapter Innovation at a summit in Sydney on Thursday, which is a new program where Commbank will be partnering with non profit and social enterprise organisations to support financial abuse victims in their long term recovery.
The program will focus on some of the Australians identified as most at risk, including First Nations people, the elderly and the disabled.
A Community Awareness Survey of 10,000 Australians revealed financial abuse is becoming more common in Australia.
Nearly a third (32%) of Gen Zers and 29% of millennials report they are currently experiencing some sort of financial abuse.
The survey found financial abusers are most commonly family members or patners, with the following the most prevalent types of abuse:
- Refusing to contribute financially to the family
- Destroying, damaging or stealing something belonging to a family member
- Having complete control over someone else's finances
- Has access to online banking and manages a family members money without consent
- Forcing a family member to give up access to their superannuation
"Westpac customers can now immediately cancel direct debits" was originally published on Savings.com.au and was republished with permission.