The corporate watchdog, the Australian Securities and Investments Commission, today announced Westpac had given back a massive $11.3 million to more than 3400 customers after concerns it was not correctly conducting its credit card limit increases before upping limits.
This included waiving a $8.3 million from credit card balances.
ASIC ordered the bank to improve its lending practices when providing credit card limit increases to ensure proper checks were being made about customers’ income and employment status to ensure they could pay back debts accrued.
And ANZ has also come under fire for failing to properly disclose fees and interest charges for credit products.
ASIC has forced the big bank to refund $10.2 million to 52,135 business credit card accounts after it had incorrectly disclosed the following:
— Applicable interest rates.
— The interest-free period.
— The annual fee.
— When an overseas transaction fee might apply.
— The amount payable for overseas transactions with foreign merchants or financial institutions.
ANZ will refund the relevant customers and will also include interest.
Customers who are no longer with the bank will receive a bank cheque and existing customers with an open account will have the money refunded back into their accounts.
Westpac has finished refunding customers which included around $3 million for fees and interest on top of waiving about $8.3 million in credit card balances.
In a written statement issued by Westpac it said, “Westpac is committed to lending responsibly.
“If we get something wrong we will acknowledge it and will put it right for our customers.”