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\nThe Co-operative Bank self-reported the breaches under the Credit Contracts and Consumer Finance Act.
\nPhoto: Supplied\/Co-operative Bank\n<\/p>\n
The Co-operative Bank has been penalised nearly $2.5 million by the High Court for overcharging its customers.<\/p>\n
It comes after the bank admitted to the breaches last year after reaching a settlement with the Commerce Commission.<\/p>\n
The commission said the bank overcharged just over 48,000 customers approximately $7.225 million, which has since been remediated.<\/p>\n
The Co-operative Bank self-reported the breaches under the Credit Contracts and Consumer Finance Act, and accepted the overcharging occurred after a series of compliance and process failures.<\/p>\n
“Investing in compliance and rigourously auditing processes and controls is a crucial step towards avoiding an investigation, court action and a hefty penalty,” Commerce Commission director of credit Sarah Bartlett said.<\/p>\n
The commission said the bank charged 12 “unreasonable fees” across its lending products involving its home and personal loans, with most being charged between June 2015 and November 2021.<\/p>\n
In her judgement, Justice Victoria Heine noted the circumstances behind the breaches varied from fee to fee. However, they suggested “there was a fundamental failure within Co-operative at that time to appreciate what was needed to comply with the fees provisions”.<\/p>\n
“I am satisfied that the penalty proposed is sufficient to contribute to deterring others from running the risk of non-compliance,” she said.<\/p>\n