{"id":313509,"date":"2026-03-05T02:12:09","date_gmt":"2026-03-05T02:12:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/313509\/"},"modified":"2026-03-05T02:12:09","modified_gmt":"2026-03-05T02:12:09","slug":"asb-fined-2-1-million-for-misleading-more-than-25000-customers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/313509\/","title":{"rendered":"ASB fined $2.1 million for misleading more than 25,000 customers"},"content":{"rendered":"<p class=\"QOlBexkCgF\" style=\"display:none\">\u201cCustomers are entitled to rely on their bank to apply discounts and fee exemptions accurately. ASB failed to detect and address these issues over many years.\u201d<\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">\u201cWe acknowledge ASB\u2019s co-operation, however, the duration of the failings and the delays in identifying and escalating the issues meant that a strong regulatory response was necessary.\u201d<\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">Justice Laura O\u2019Gorman said: \u201cWhere contraventions of the Financial Markets Conduct Act (FMCA) are the result of process or system failures, the penalty must be set at a level that creates a strong incentive for financial institutions to maintain adequate systems and processes.<\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">\u201cThe penalty needs to be at a level that clearly signals manual processes without adequate quality assurance and proactive problem detection and escalation is unacceptable.\u201d<\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">ASB made <a href=\"https:\/\/www.nzherald.co.nz\/business\/companies\/banking-finance\/asb-profit-dips-as-staffing-rises-33m-set-aside-for-customer-compensation\/BJAM73MXSFBOLPLKILVL3NQA3E\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/business\/companies\/banking-finance\/asb-profit-dips-as-staffing-rises-33m-set-aside-for-customer-compensation\/BJAM73MXSFBOLPLKILVL3NQA3E\/\">$1.45 billion in profit<\/a> in the 12 months to June 2025, a dip of 0.4% on the previous year.<\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">The bank said it had set aside A$33m ($36.18m) in customer \u201cremediation provisions\u201d.<\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">ASB chief executive Vittoria Shortt declined to elaborate on why the bank had put money aside to potentially reimburse customers for a mistake, or various mistakes, the bank has made. <\/p>\n<p class=\"QOlBexkCgF\" style=\"display:none\">She said it was standard practice for the bank to notify regulators if it believed there was a breach, before looking to rectify the issue and pay out customers.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cCustomers are entitled to rely on their bank to apply discounts and fee exemptions accurately. ASB failed to&hellip;\n","protected":false},"author":2,"featured_media":313510,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[652,8990,25286,1558,4381,1644,19631,2082,11521,42,1132,12936,130,43,112273,95584,131,1361,40,38,41,39],"class_list":{"0":"post-313509","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-652","9":"tag-8990","10":"tag-asb","11":"tag-been","12":"tag-customers","13":"tag-financial","14":"tag-fined","15":"tag-for","16":"tag-harm","17":"tag-headlines","18":"tag-million","19":"tag-misleading","20":"tag-more","21":"tag-news","22":"tag-representations","23":"tag-resulted","24":"tag-than","25":"tag-that","26":"tag-top-news","27":"tag-top-stories","28":"tag-topnews","29":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/313509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=313509"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/313509\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/313510"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=313509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=313509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=313509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}