Major Australian banks – Commonwealth Bank, Westpac, Macquarie, NAB, AMP, and ANZ – have been ordered to pay at least $3.15 billion worth of compensation to customers.
Around 1.3 million Australians are qualified to receive compensation from the biggest banks due to advice misconduct.
According to the Australian Securities and Investments Commission (ASIC) the payout relates to two major problems in the banks’ operations.
First, the banks charged their customers for advisory services that were not given.
Second, the banks were found to be providing “non-compliant advice” to their customers that resulted in “loss or detriment”.
ASIC reveals that the banks only paid around $1.3 billion between 1 July to 31 December 2021.
That suggests there are still a huge number of customers out there that are not yet compensated, most likely they were not able to open their letters, failed to lodge a claim, or simply were not reachable via phone.
As of December 31 last year:
- CBA paid or offered $173,848,961 to 62,942 affected customers
- Westpac paid or offered $894,957,011 to 111,284 affected customers
- Macquarie paid or offered to pay $4,628,000 to 1,105 affected customers.
- AMP had paid or offered to pay $579,664,727 to 319,269 affected customers
- ANZ paid or offered $123,965,993 to 40,137 affected customers
- NAB paid or offered $1,127,275,888 to 754,519 affected customers
Are you due for a payout?
Around 1.3 million Australians are affected by the bank failures and are thus due to remediation schemes. The banks in question are mandated to contact their impacted customers.
So how to check if you are eligible for compensation?
First, if you have not received any form of financial advice from the banks involved in the order, you might be eligible because that is an essential part of your agreement with the bank.
Second, you might be qualified to receive payment if you have received financial advice between 2009 and 2015. One ASIC review found the banks improperly identified and dealt with non-compliant advice between those years.
Call your bank’s remediation team if you believe you have been affected and are yet to be compensated.
Here are the bank’s remediation hotlines for faster access:
Commonwealth Bank 1800 807 655 from 9.00am – 5.00pm (AEST/AEDT), Monday to Friday
Westpac 132 032 – 8am – 8pm, 7 days a week from anywhere in Australia
Macquarie 1800 806 310
NAB 1300 405 562 between 8am and 6pm (AEST/AEDT) Monday to Friday
AMP 1300 555 727
ANZ 1800 245 416 Weekdays 8am – 6pm (AEST)