meta_id 3186815

On a date in 2025, the Federal Court ordered Westpac Banking Corporation (Westpac) to pay $26 million in civil penalties for failing to respond to customers experiencing financial hardship. Justice McEvoy found that Westpac failed to respond to over 200 online hardship requests within the time required by law between 2017 and 2023. The Australian Securities and Investments Commission (ASIC) brought the enforcement action against Westpac and its subsidiaries St George Bank, Bank SA and Bank of Melbourne. Under the National Credit Code, customers experiencing difficulties meeting repayments must receive a response to hardship notices within a specified timeframe. Westpac admitted contravening Section 72(4) of the National Credit Code and Sections 47(1)(a) and 47(4) of the National Credit Act. Justice McEvoy described the contraventions as "very serious," noting they arose from inadequate systems and operational failures rather than deliberate misconduct, and impacted vulnerable customers over an extended period. Some customers waited weeks beyond the legal deadline for responses; others received no response at all. The court found that some customers subsequently had adverse credit information recorded and debts sold to third-party debt purchasers, compounding harm. ASIC Deputy Chair Sarah Court said the penalty sent a clear message to lenders to prioritise customers struggling financially. Westpac admitted contraventions and paid more than $1.7 million in remediation to affected customers, including refunds of fees and interest and compensation for non-financial loss. This enforcement action aligns with ASIC's broader focus on lender compliance with hardship obligations. The Australian Financial Complaints Authority (AFCA) handles customer complaints regarding hardship decisions. Consumers experiencing financial hardship can access support through the National Debt Helpline (1800 007 007) or ASIC's Moneysmart website.