Westpac accepted that it may have contravened fair dealing provisions of the Financial Markets Conduct Act (FMCA) and/or possible breaches relating to consumer credit contracts under the Fair Trading Act (FTA).
The Financial Markets Authority (FMA) and Commerce Commission have formally agreed with Westpac the steps the bank must take to refund fees to some 93,000 customers being overcharged $7 million. See media release.
Westpac notified the FMA and Commerce Commission that it had identified similar issues with another 32,000 customers, with around $5.7 million inappropriately charged.
The affected banking packages included the Tertiary Pac, Career Starter Pac, Graduate Pac, International Student Pac, Relationship Rewards Scheme, Family Benefits and Westpac Staff Package, Bizpac, and Government Packages and Portfolio Package.
Westpac self-disclosed to the FMA and the Commerce Commission that there was an issue around the discounting of fees for some customers. Westpac did not apply discounts appropriately, impacting 61,000 customers to a value of approximately $1.28 million.