NZ Court orders ASB to pay $2.1M penalty for fair dealing breaches
The High Court of New Zealand has imposed a final penalty of $2.1 million on ASB Bank Limited for fair dealing breaches relating to its insurance products and banking services.
ASB admitted making false and/or misleading representations that resulted in financial harm to customers failure to correctly apply multi-policy discounts on ASB-branded insurance products, and failure to apply fee exemptions for eligible FastNet Business customers.
This resulted in more than 25,000 customers being refunded approximately $4.7 million by ASB.
FMA Head of Enforcement, Margot Gatland said:
“We acknowledge ASB’s cooperation, however, the duration of the failings and the delays in identifying and escalating the issues meant that a strong regulatory response was necessary.”
The FMA acknowledges that ASB self-reported the issues and carried out remediation.
