TSB Bank Limited

The Commerce Commission has filed civil proceedings in the High Court against TSB Bank Limited seeking declaratory orders and pecuniary penalties in relation to breaches of the Lender Responsibility Principles under the Credit Contracts and Consumer Finance Act 2003 in relation to issues that primarily occurred between 6 June 2015 and 30 November 2021 (with certain issues continuing until 1 December 2023). TSB consented to the Commission seeking the orders following a settlement entered into by the parties in advance of filing.

TSB self-reported and admitted that it failed to have sufficient and robust processes and controls to ensure compliance with the Lender Responsibility Principles. In particular, TSB failed to have suitable governance arrangements in place to ensure that its overdraft products were consistently assessed for compliance with applicable Lender Responsibility Principles. Some of the breaches resulted in some borrowers being overcharged, and some resulted in borrowers not being sent all information that TSB should have provided, in breach of the Lender Responsibility Principles.