Kiwibank is facing criminal charges after overcharging customers $7 million over a period of several years. The Commerce Commission alleges over 36,000 customers were mischarged fees and interest rates on home loans, credit cards, and overdrafts.
The charges are based on multiple errors in Kiwibank’s manual and electronic systems, which led to the bank misrepresenting what customers owed. The charges are a longstanding, systemic breach of the Fair Trading Act, dating back to Kiwibank’s inception in 2002.
The commission expects banks to invest in compliance systems to ensure consumers receive a fair deal and are charged what was advertised. Kiwibank first identified the issues and reported them to the commission.
