The Commerce Commission has filed criminal charges against Kiwibank Limited (Kiwibank), alleging systemic breaches of the Fair Trading Act.
The breaches relate to issues that resulted in more than $7 million being incorrectly charged to over 36,000 customers for fees and interest rates in relation to home loans, credit cards and overdrafts, over a period of several years.
Commerce Commission Deputy Chair Anne Callinan said these are serious charges, stemming from multiple errors in Kiwibank’s manual and electronic systems which resulted in Kiwibank misrepresenting what customers owed.
“In the Commission’s view these are longstanding, systemic breaches of the Fair Trading Act some of which date back to Kiwibank’s inception in 2002,” Ms Callinan said.
“Lenders must have processes in place to ensure consumers are getting a fair deal and are charged what was advertised to them.”
“The Commission expects banks to make the necessary investment in the systems that support their compliance obligations so they get things right for consumers.”
The issues were first identified by Kiwibank and reported to the Commission. Ms Callinan says Kiwibank has been contacting customers and is progressively refunding about $7 million in overcharges.
The Commission’s charges relate specifically to the overcharges from 2019 onwards.
As this case is now before the Court, the Commission cannot comment further.
Broadcaster Chris Lynch is an award winning journalist who also produces Christchurch news and video content for domestic and international companies. This article was first published HERE
“In the Commission’s view these are longstanding, systemic breaches of the Fair Trading Act some of which date back to Kiwibank’s inception in 2002,” Ms Callinan said.
“Lenders must have processes in place to ensure consumers are getting a fair deal and are charged what was advertised to them.”
“The Commission expects banks to make the necessary investment in the systems that support their compliance obligations so they get things right for consumers.”
The issues were first identified by Kiwibank and reported to the Commission. Ms Callinan says Kiwibank has been contacting customers and is progressively refunding about $7 million in overcharges.
The Commission’s charges relate specifically to the overcharges from 2019 onwards.
As this case is now before the Court, the Commission cannot comment further.
Broadcaster Chris Lynch is an award winning journalist who also produces Christchurch news and video content for domestic and international companies. This article was first published HERE
1 comment:
Systemiic? - as in Britains Post Office systems? Perhaps more digging is required.
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