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Kiwibank in trouble for overcharging

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Kiwibank has apologized for errors that led to overcharging more than 36,000 customers a total of $7 million.

These issues involved incorrect fees and interest rates on home loans, credit cards, and overdrafts. The bank has reported breaches of the Fair Trading Act to the Commerce Commission, resulting in 21 criminal charges.

The Commerce Commission’s deputy chairperson, Anne Callinan, explained that these charges were due to multiple mistakes in Kiwibank’s systems, causing the bank to misrepresent what customers owed. Although the charges relate specifically to overcharges since 2019, the commission indicated that problems have existed since Kiwibank’s founding in 2002.

Callinan emphasized the importance of banks having accurate systems to ensure customers are charged correctly. She stated that banks must invest in their systems to meet compliance obligations and protect consumers.

Kiwibank has been contacting affected customers and issuing refunds. As the case is now before the court, the Commerce Commission cannot provide further comments at this time.

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