Scoop has an Ethical Paywall
Licence needed for work use Learn More

Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Kiwibank Face Criminal Charges Following Issues That Cause Over $7m In Overcharges

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 says 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 says.

“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.

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.