The Co-operative Bank Limited

The High Court has made declaratory orders that The Co-operative Bank Limited has breached the lender responsibility principles and unreasonable fee provisions in the Credit Contracts and Consumer Finance Act and ordered the bank to pay a pecuniary penalty of $2.482 million. The Commission and The Co-operative Bank Limited reached an agreed settlement to resolve the proceedings. The Co-operative Bank admitted that it failed to have adequate processes in place to ensure it complied with the fee provisions in the Act; and provided for credit and default fees which were unreasonable.