Asic says customers should not have to check every transaction to ensure they receive the correct interest
Macquarie Bank is set to pay a $14m court-imposed penalty after it admitted to breaking the Corporations Act with its “welcome rate” promotions.
The penalty comes amid a crackdown by Australian Securities and Investments Commission over complex savings conditions that risk short-changing consumers grappling with the cost of living.
Macquarie Bank described its savings offer as a “welcome variable rate” or “bonus” in promotional material in 2022, according to the regulator, which could lead some customers to believe it was paid on top of the standard variable rate.
As interest rates increased that year, the gap between the welcome rate and the standard rate shrank.
Once the standard rate overtook it, customers only received the standard rate with no bonus added, Asic alleged in the NSW Supreme Court proceedings.
The Asic commissioner Alan Kirkland said customers should not have to scrutinise every transaction to check their bank has paid the correct interest.
“Banks must get the basics right, which includes having systems and processes that deliver on the promises they make to customers,” Kirkland said.
“This wasn’t just unclear wording. Macquarie’s systems and controls were not rigorous enough to identify the risk that customers would misunderstand how the ‘welcome rate’ worked.”
