TSB Bank Limited

The High Court has made declaratory orders that TSB breached s 9C(1) of the Credit Contracts and Consumer Finance Act 2003, by failing to comply with the responsible lending principles. TSB was ordered to pay a pecuniary penalty of $877,500. TSB consented to the Commission seeking the orders following a settlement entered into by the parties in advance of filing.

TSB 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.