Bank fined for giving home borrowers wrong information
Banks have been put on notice to use “very high levels of diligence” on automated software systems after the Federal Court fined Members Equity Bank $820,000 for sending home loan customers letters with inaccurate information.
Justice Robert Bromwich rejected ME Bank’s argument that its failure to correctly notify hundreds of customers of changes to home loan interest rates and minimum repayment amounts between December 2016 and September 2018 was a “minor” offence because it was a technical issue caused by defective software systems.
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