TSB self-reported the issue to the Financial Markets Authority (FMA) and has paid $1,734,800 in remediation. This comprised $1,425,127 in refunded fees, $10,404 in related interest and charges, and $299,269 in compensation for the use of that money over time.<\/p>\n
Trish Millward, FMA\u2019s acting head of perimeter and response, said financial institutions need to ensure their systems and processes support fair customer outcomes.<\/p>\n
\u201cCustomers should be able to trust that a bank charges them only what its terms and conditions say it will.<\/p>\n
\u201cTSB\u2019s customers had no practical way to check these fees for themselves, and the overcharging went on for six years.<\/p>\n
\u201cWhen financial institutions make changes to their terms and conditions, they need to ensure that their systems can deliver those changes to their customers.\u201d<\/p>\n
In 2024, TSB was fined $2.47m<\/a> after it was found to have charged unreasonable credit and default fees.<\/p>\n The bank charged about $3.6m more than it should have across 12 \u201cunreasonable\u201d credit and default fees over six years between June 2015 and November 2021.<\/p>\n In 2021, the bank was ordered to pay $3.5m in civil penalties<\/a> for breaching anti-money laundering laws.<\/p>\n