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(Reuters) – New Zealand’s financial regulator said on Monday that the local unit of Australian lender Westpac admitted overcharging and misleading more than 24,000 personal and business customers by not offering advertised discounts and benefits.
The Financial Markets Authority (FMA) said it launched civil proceedings against Westpac New Zealand in the High Court in Auckland, where it admitted that 24,621 customers did not receive benefits advertised under certain packages, resulting in the bank overcharging 6 .35 million New Zealand dollars ($3.59 million). .
“Westpac’s problems arose from deficiencies in its systems which meant the bank did not deliver (customers) contractually agreed discounts,” Margot Gatland, the FMA’s head of compliance, said in a statement on the regulator’s website. .
The regulator said Westpac has provided redress to affected customers and they have agreed to resolve the proceedings on mutually acceptable terms.
Westpac, in a statement emailed to Reuters, said it had reported the issues to the FMA and had been cooperating with the regulator in its investigation.
The Auckland court is likely to hear the matter in 2025, Westpac said.
($1 = 1.7683 New Zealand dollars)
