Banks stopping financial abuse with terms and conditions clauses

The new conditions will be implemented by NAB and the Commonwealth Bank.

NAB says the new reference to "unacceptable account conduct" officially puts customers on notice that the bank can suspend, cancel or deny individuals access to their savings and transaction accounts if the bank identifies them as engaging in financial abuse.

Its head of Customer Vulnerability, Michael Chambers, said financial abuse was a common tactic used by perpetrators to control individuals.

"Concerns about financial abuse remains one of the top reasons customers get in touch with our customer support team, NAB Assist," he said.

"Financial abuse can take many forms including where an individual is denied access to their own funds or has their funds misused by another individual. This form of control can occur between couples, family members or relationships where one person is providing care for another."

Mr Chambers said NAB was also working with other banks to help develop a consistent approach across the industry.

NAB plans to have the new terms and conditions in place by November.

The Centre for Women's Economic Safety has described the move as a significant step forward.

"This response ... puts perpetrators 'on notice' that institutions are going to make it harder for them to use financial abuse as a tactic of coercive control. And, importantly, that they'll take action," said the centre's chief executive Rebecca Glenn.

In its Designed to Disrupt report published late last year, the centre called on all 97 of the country's banks to redesign products to improve financial safety.

It called for banks to start by changing their terms and conditions to make it clear that a bank account is no place for abuse and that they will take action against customers who misuse their products to cause harm.

In March, the centre conducted a desktop review of the terms and conditions of the 20 Australian Banking Association member banks, finding none referenced financial abuse in their terms and conditions.