Bank failed to deliver promised benefits for some customers
Kiwibank has confirmed that it has pleaded guilty to breaches of the Fair Trading Act.
These breaches relate to work the bank said it has undertaken to proactively seek out, investigate, and resolve historic issues where errors were made.
The issues arose when some systems and processes related to credit products (home loans, credit cards, and overdrafts) did not correctly deliver the promised benefits or pricing for some customers.
“We proactively identified the issues, reported them to the Commerce Commission and have fully co-operated with their investigation, while at the same time carrying out a remediation programme for all affected customers,” Kiwibank CEO Steve Jurkovich (pictured above) said.
“While I’m disappointed with the mistakes we made in the past, I’m proud of the way our team has now come together to fix the problems and make things right for our customers.”
Kiwibank’s penalty to be determined
Kiwibank and the Commerce Commission have agreed on a summary of facts and are aligned in their views on the appropriate penalty.
This will be determined by the Auckland District Court at a later date.
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