(Reuters) – New Zealand's financial regulator said on Monday that the local unit of Australian bank Westpac admitted to overcharging and misleading more than 24,000 retail and business customers by not offering advertised discounts and benefits.
The Financial Markets Authority (FMA) said it had filed a civil case against Westpac New Zealand in the Supreme Court in Auckland, admitting 24,621 customers failed to access advertised benefits under certain packages, resulting in the bank being overcharged by $6.35 million. NZD ($3.59 million USD). .
“Westpac’s problems stem from deficiencies in its systems which meant the bank failed to offer them (customers) contractually agreed rebates,” Margot Gatland, head of enforcement at the FMA, said in a statement on the regulator’s website.
The regulator said Westpac had provided redress to affected customers, and that they had agreed to resolve the proceedings on mutually acceptable terms.
Westpac said in an emailed statement to Reuters that it had itself reported the issues to the FMA and was cooperating with the regulator in its investigations.
The court in Auckland will likely hear the matter in 2025, Westpac said.
($1 = 1.7683 New Zealand dollars)
