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ASIC slams banks for inaction and spending more money on consultants than to its customers

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Commercial Litigation Lawyer, Georgia Taylor, follows-up on the ongoing behaviour of banks and their remediation programs with ASIC slamming them for continuing to drag their feet.

Following from the revelation that banks were still behaving badly in the years preceding the Banking Royal Commission, and during the COVID-19 pandemic (based on data from the Australian Financial Complaints Authority (AFCA)), it seems that consumers aren’t the only ones on the lookout for banking misconduct.

ASIC frustrated as it tries to accelerate compensation

Frustration for customers and The Australian Securities and Investments Commission (ASIC) continues to worsen as the banks and wealth managers spend more money on using unproductive consultants for remediation programs. They are doing whatever they can to reduce the risk of potentially over-compensating their customers.

Documents obtained by The Australian Financial Review revealed the bank’s intention to ignore the regulator’s preferred approach to expedite refunds to customers.

“Many months have been spent in the past arguing with the institutions regarding remediation methodology,” notes the internal briefing paper for top ASIC commissioners in November last year.

“The institutions have often taken a legalistic approach in an effort to reduce the scope of remediation required and the value of repayment to customers,” it said.

Westpac and ANZ spokespeople have said they are doing everything they can to complete remediation programs as quickly as possible. However, the proof is in the pudding with more than 2 million people still waiting for compensation.

How can Attwood Marshall Lawyers help?

The financial services industry continues to suffer a significant trust deficit in the eyes of the community, and for good reason. Banks act in their best interests, and not that of their customers.

If you have suffered financial loss as a result of bad or incorrect financial advice, you may be entitled to compensation. Our Commercial Litigation lawyers are experienced in dealing with lending institution matters and use reputable forensic accountants to assess the conduct of the banks and calculate the losses suffered as a result.

To discuss a banking matter, contact Commercial Litigation Department Manager, Amanda Heather, on direct line 07 5506 8245, email aheather@attwoodmarshall.com.au or free call 1800 621 071.

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