Westpac's Overcharging Issues in New Zealand
(Reuters) – New Zealand's financial regulator reported that Australian lender Westpac's local unit admitted to overcharging and misleading over 24,000 personal and business customers by failing to provide advertised discounts and benefits.
The Financial Markets Authority (FMA) announced it has initiated civil proceedings against Westpac New Zealand in the High Court in Auckland. The bank acknowledged that 24,621 customers did not receive the advertised benefits associated with certain packages, leading to an overcharge of NZ$6.35 million ($3.59 million).
According to Margot Gatland, FMA's head of enforcement, "Westpac's issues stemmed from deficiencies in its systems that meant the bank failed to deliver to them (customers) contractually agreed discounts."
The FMA stated that Westpac has begun remediation efforts for the affected customers and has mutually agreed to resolve the proceedings.
In a statement to Reuters, Westpac mentioned that it self-reported the issues to the FMA and has been cooperating with the regulator throughout the investigation. The Auckland court is expected to hear the case in 2025.
($1 = 1.7683 New Zealand dollars)
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