Westpac is facing civil court proceedings from ASIC, which alleges it failed to respond to hardship requests within the time required by law.
abc.net.au/news/asic-takes-westpac-to-court-hardship-application-response/102814610Desperate bank customers in financial hardship were ignored by Westpac when they asked for help, according to a new lawsuit.ASIC alleges Westpac failed to investigate and fix issues in its online hardship application processIf proven in court, Westpac could face millions of dollars in fines
Some faced serious consequences while they were waiting for Westpac to respond, including being chased for debt collection, ASIC said."Submitting a hardship notice, which results in a change to the credit contract, can be a lifeline for people experiencing challenging financial circumstances," ASIC Deputy Chair Sarah Court said.
"Westpac's failures to respond to these notices compounded their customers' difficult financial circumstances."According to the lawsuit, Westpac had a serious problem with its online lodging system between 2015 and 2022.Last month, Westpac posted a net profit of $1.8 billion in the third quarter.In a statement, Westpac said it was considering the matters raised by ASIC and has apologised for the "technology failure" which meant it failed the customers.
"While we have assisted some of these customers in subsequent contact, it is not good enough that we missed their initial attempt to get in touch."
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