The Auckland District Court has fined Kiwibank $1.5 million following the Commerce Commission's proceedings regarding breaches of the Fair Trading Act.
Kiwibank previously self-reported the issues to the Commerce Commission and admitted to the breaches, which were connected to the bank's work to proactively identify, investigate, and resolve historical errors.
The errors occurred because some systems and processes related to credit products failed to deliver the promised benefits or pricing to certain customers.
Kiwibank has carried out a remediation programme for affected customers and remediations will be completed by March 2025, if not complete already.
Steve Jurkovich, Kiwibank Chief Executive, said, “Throughout this process, our focus has been on correcting issues for our customers as quickly as possible. We apologise for the errors and are committed to continuing to build an even stronger New Zealand bank to help make more Kiwi better off."
Media contact: Ben Mabon, Head of External Communications 027 288 3263.