Federal Court ordered Westpac to pay AU$1.5 million as a penalty

On 07 April 2022, the Federal Court ordered Westpac Banking Corporation (ASX: WBC) to give AU$1.5 million as a penalty. The bank is alleged for selling credit cards and Flexi Loans to customers who did not agreed to purchase insurance policies.

From April 2015 to July 2015, 141 customers were issued consumer credit insurance policies who did request the product. Westpac sent a letter to every customer stressing the right to payment of insurance premiums and deducted the amount from their credit card or facility. The Court found WBC did not have the right to these payments. At the same time, customers were not accountable to pay them. 

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