Greens bill would force LMI refunds
A banking reform bill to be introduced today by the Greens will include measures to make LMI portable.
The bill, set to be introduced today by Greens MP Adam Bandt, will require banks to help customers switch their accounts to rival banks, Fairfax has reported.
Under the legislation, banks would be required to re-route direct debits and credits to customers' new accounts after they switch financial institution. The bill would also require lenders to refund the outstanding value of LMI policies when borrowers move their mortgage.
Acccording to Fairfax, the government's feasibility study into account number portability, conducted by former RBA governor Bernie Fraser, has been concluded. Treasurer Wayne Swan's office told Fairfax the government would release its response to the study "in due course".