Banking regulator ASIC has announced it is suing Westpac for failing to respond in time to requests for assistance from customers struggling with mortgage repayments.
In a statement on Tuesday, ASIC alleged hundreds of customers were left in the dark due to a"deficiency" with Westpac's process for tracking those experiencing hardship.
ASIC also alleges some of those customers were subject to debt collection actions from the bank while they were still awaiting a response. "Submitting a hardship notice, which results in a change to the credit contract, can be a lifeline for people experiencing challenging financial circumstances," she said.
ASIC alleges the bank broke the National Credit Code by failing to respond to the notices on time and the National Credit Act by failing to act"efficiently, honestly and fairly" in its response. Responding to the announcement of legal action, Westpac released a statement acknowledging the errors and confirmed it had self-reported the matter to ASIC.
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