Westpac is one of the leading banks in Australia. Most of the people down under trust the bank. More than fifty percent of the population has an account in the bank. However, the bank did not do justice to their customers. They have been accused of overcharging and foul behavior. A host of charges have been brought against the bank.
Customers have complained that the bank did not treat the customers well. Shockingly, the bank charged high rates of interest from dead people. Such behavior landed the bank in trouble. As many as six suits of the law were lodged against the financial organization. The bank has immediately admitted its mistake. They have agreed to be working unlawfully.
Westpac has been ordered to compensate all their customers. A total of eighty-one million dollars have to be rolled out by the bank as a penalty. This amount is estimated by the bank. The approval of the court is yet to come. The bank has also agreed to dish out fifty-seven million dollars as compensation to their customers. Let us know more about the incident in detail below.
Westpac In Distress After Repeated Lawsuits
The Investment & Securities Commission of Australia has criticized Westpac heavily. They have termed their attitude as a “poor compliance culture”. Sarah Court is the Deputy Chair of ASIC. She stated that the actions of the bank impacted its customers significantly. It affected their lives in a harmful way.
An investigation revealed that Westpac had charged over seven million dollars from their deceased users. This amount was charged over ten years. Westpac charged them for providing financial advice. Peter King, the Chief Executive of the bank has apologized right away. He stated that such mistakes would not be repeated in the future.