5 September 2023 - ASIC sues Westpac for failing to respond to hardship notices

ASIC has commenced civil penalty proceedings in the Federal Court against Westpac Banking Corporation for failing to respond to customers’ hardship notices within the time required by law.

ASIC alleges that between 2015 and 2022, a deficiency with Westpac’s online hardship notice process resulted in 229 Westpac customers not receiving a response to their hardship notice within the required timeframe of 21 days.

All of these customers told Westpac they were experiencing financial hardship. Many of these customers also told Westpac about their difficult circumstances and vulnerabilities, including their inability to work, the impacts of serious medical conditions or their carer responsibilities.

In some cases, customers endured debt collection activities by Westpac while waiting for the bank to respond to their hardship notices.