The case brought by the Australian Securities and Investments Commission focused on 2022 marketing campaigns that branded introductory savings offers as welcome or bonus variable rates. Savers were led to believe these perks were paid on top of standard returns, but rising interest rates eventually erased the gap and eliminated the bonus entirely. The outcome reflects a broader enforcement effort following findings that complex terms frequently cause customers to miss out on advertised interest perks.
Key points
Macquarie Bank agreed to pay the court penalty after admitting it breached the Corporatio…: Macquarie Bank agreed to pay the court penalty after admitting it breached the Corporations Act.
Advertised savings bonuses were not paid in addition to standard variable rates once benc…: Advertised savings bonuses were not paid in addition to standard variable rates once benchmark rates increased.
Consumers frequently lose out on advertised headline yields because of restrictive balanc…: Consumers frequently lose out on advertised headline yields because of restrictive balance and withdrawal conditions.
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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.
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