For immediate release
Wednesday 9 June 2004
Westpac At Fault In Student Payment Problem
Westpac has completed an investigation into a problem that occurred yesterday with student loans and allowances.
“Our investigation has concluded that Westpac made an error in the processing of the files received from the Ministry of
Social Development, resulting in 29,876 students not getting their loans or allowance payments processed as normal,”
said Westpac’s General Manager, Business Banking, Bruce McLachlan.
“Westpac would like to apologise to the students and the Ministry and assure both that we will work closely with the
Ministry to closely examine existing practices for the delivery and processing of the payment files, to ensure this does
not happen over public holiday weekends in future,” Bruce McLachlan said.
He said that Westpac’s immediate priority yesterday had been rectifying the error and ensuring that the payments were
processed correctly. This occurred for Westpac customers – about 7000 of the affected students – by early afternoon. The
payment files were made available to other banks shortly afterward.
Westpac has set in place a process to ensure that there are no dishonour or penalty fees imposed on its customers, as a
result of their being unable to meet automatic or cheque payments, and to reverse those that do occur. Westpac has also
asked that the other banks show leniency to students affected by the delay.
Westpac has reimbursed fees charged to its customers today. Students who have accounts with other banks should first
make contact with their banks. Alternatively, they can call at their nearest Westpac branch or phone Westpac on 0800 400
600.
ENDS