Borrow
‘Walk the talk’, Westpac told after admitting to widespread failures
After the big four admitted to multiple failures and committed to remediating the issues, a law firm has urged Westpac to “walk the talk”.
‘Walk the talk’, Westpac told after admitting to widespread failures
After the big four admitted to multiple failures and committed to remediating the issues, a law firm has urged Westpac to “walk the talk”.

Westpac has reached what is being referred to as a “mega settlement” with respect to six cases brought by the corporate regulator, but law firm Slater and Gordon doesn’t believe the big four has done quite enough.
On Tuesday (30 November), ASIC confirmed six civil penalty proceedings against Westpac, alleging widespread compliance failures across multiple Westpac businesses over many years, affecting thousands of consumers.
Moments later, Westpac itself admitted to failures and confirmed a settlement had been reached totalling $80 million, with a majority of wronged customers said to have already received their payment.
“We are putting things right and unreservedly apologise to our customers,” said Westpac chief executive Peter King.

But in a separate statement on Wednesday (1 December), Slater and Gordon demanded Mr King do better.
Slater and Gordon practice group leader Andrew Paull said if the bank was serious about righting the wrongs of the past, it would have taken immediate steps to remediate the thousands of vulnerable Australians ripped off in a separate matter relating to the mis-selling of consumer credit insurance.
Namely, in April this year, ASIC confirmed it had commenced civil penalty proceedings in the Federal Court against Westpac, alleging it mis-sold consumer credit insurance with credit cards to customers who had not agreed to buy the policies.
The action followed an ASIC review of the sale of CCI by 11 major banks and lenders.
Commenting on Westpac’s ongoing issues, Mr Paull said, “customers who trusted the big banks were ripped off and continue to be out of pocket despite a royal commission and numerous ASIC investigations which found Westpac’s behaviour was reprehensible”.
“In terms of junk insurance many people who purchased these insurance products had disabilities, were unemployed, or were critically ill, and therefore not eligible to claim against the insurance products,” Mr Paull said.
“Others were simply led to believe the insurance they bought was free, or mandatory. Neither was the case.”
And while legal action continues to be the only recourse for most customers who want to recover the funds they’ve lost, Mr Paull noted that in his experience, “Westpac would rather litigate and do everything they can to avoid remediating customers”.
“If Westpac were truly committed to righting the wrongs of the past, it’s time for the bank to come to the table and compensate the thousands of customers who were ripped off with these junk insurance products,” Mr Paull said.
Last year, Slater and Gordon hit Westpac and ANZ with class action proceedings relating to consumer credit insurance, just months after settling a similar case with NAB for $49.5 million.
In June, the law firm also took action against Commonwealth Bank, alleging the bank sold the products to hundreds of thousands of customers despite admitting they were worthless.
On Tuesday, ASIC revealed that following several investigations, it had uncovered “poor systems, poor processes and poor governance” at Westpac, which are suggestive of an “overall poor compliance culture” within the bank.
About the author

About the author


Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more

Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more

Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more

Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more

Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more

Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more

Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more

Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more

Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more

Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more

Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more

Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more

Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more

Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more

Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more

Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more