The Federal Court orders Westpac to pay a $26 million penalty after finding the bank failed to adequately respond to customers experiencing financial hardship. Multiple reports say the court describes the conduct as “grossly negligent,” focusing on delays and failures in how Westpac dealt with customers who needed assistance. The penalties stem from shortcomings in the bank’s handling of hardship-related requests and its responses to customers during a prolonged period, with one source characterizing the issue as lasting for about six years.
The reports agree the fine is imposed by the Federal Court and is specifically linked to Westpac’s failure to respond quickly and appropriately to customers facing hardship. While the outlets use similar language to describe the court’s assessment, the common thread is that the court determined Westpac’s conduct did not meet required standards for assisting affected customers.
The decision adds to regulatory and legal scrutiny of how large banks respond to customers in financial distress, highlighting the expectations placed on banks to provide timely and effective support when hardship is raised.
