TSB reaches agreement with Commerce Commission
New Plymouth, New Zealand – On 11 December TSB signed a Settlement Agreement with the Commerce Commission relating to an error in its Early Repayment Interest calculation (or “break fee”) for fixed rate home loans. TSB self-reported the error in April 2016 with a full report on actions and investigations that had been done to that date and has been working closely with the Commerce Commission since then to reach an Agreement.
TSB is refunding approximately 2800 customers who were inadvertently overcharged as a result of an incorrect break fee calculation when customers broke their fixed rate home loan contracts between 1 October 2008 and 14 February 2016.
“As a financial institution we regularly assess our products and services that have a calculation requirement,” says TSB CEO Kevin Murphy. “For this reason it is deeply disappointing to find a miscalculation that resulted in some customers being overcharged.”
A higher number of customers were undercharged but TSB is not seeking to recover those monies.
TSB has sent communications and refunds to affected customers and has set up a dedicated customer helpline (0800 999 234). Refunds that are not claimed will be held in trust for a maximum of 12 months, at which time any unclaimed refunds will be donated to the National Building Financial Capability Charitable Trust as agreed with the Commerce Commission.
TSB corrected the error in February 2016.
More information can be found on the Commerce Commission’s website at www.comcom.govt.nz
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Founded in 1850, TSB has been independent and 100% New Zealand owned since inception. With its head office in New Plymouth, Taranaki, the Bank has 25 locations across New Zealand. The Bank holds an A- credit rating as assigned by Fitch Rating.