Westpac New Zealand Limited

The High Court has made declaratory orders that Westpac New Zealand Limited has breached the lender responsibility principles in s 9C of the Credit Contracts and Consumer Finance Act and ordered the bank to pay a pecuniary penalty of $3.64 million. Westpac consented to the Commission seeking the orders following a settlement between the parties prior to the proceedings being filed. Westpac admitted that it failed to have adequate systems and processes in place to ensure customers and some guarantors were provided with the required disclosure under the Act; and to apply previously agreed interest rate discounts to certain customers’ homes loans.