\u201cI am satisfied that the penalty proposed is sufficient to contribute to deterring others from running the risk of non-compliance,\u201d Heine said.<\/p>\n
The commission\u2019s investigation started after the Co-operative Bank self-reported its conduct, with the two bodies entering into a settlement agreement late last year.<\/p>\n
Commission director of credit Sarah Bartlett said the Co-operative Bank has remediated 48,249 customers about $7.225m in overcharged fees and a use-of-money payment.<\/p>\n
She said it was crucial banks have robust compliance practices and adequate processes and controls in place to catch these types of issues.<\/p>\n
\u201cInvesting in compliance and rigorously auditing processes and controls is a crucial step towards avoiding an investigation, court action and a hefty penalty,\u201d Bartlett said.<\/p>\n
In a response posted to its website, Co-operative Bank chief executive Mark Wilkshire apologised to impacted customers.<\/p>\n
\u201cWhile it\u2019s disappointing that we didn\u2019t get it right the first time, we own our mistakes,\u201d Wilkshire said.<\/p>\n
\u201cWe identified the issue ourselves, reported it to the Commerce Commission, and proactively remediated customers. We\u2019ve previously reported the issue to our customer-owners in our annual reports and at annual general meetings.\u201d<\/p>\n
The bank said an allowance for the penalty and remediation was made in the 2025 financial year and is not expected to impact its financial results for the year ending March 31, 2026.<\/p>\n