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The latest case involved RAMS Financial Group, a wholly-owned subsidiary of Westpac, the country’s second-largest lender by market capitalisation. It provided credit services to first home buyers and self-employed borrowers.
ASIC had filed a lawsuit in June alleging RAMS used falsified payslips to approve home loans. It did not provide monetary details of the misconduct.
Siding with ASIC, the court said RAMS did not have proper checks and balances in place.
It found that, between June 2019 and April 2023, RAMS dealt with unlicensed referrers and failed to ensure customers were not disadvantaged by any conflict of interest.
RAMS had earlier admitted to dealing with unlicensed mortgage operators, failing to properly supervise its representatives, and other shortcomings. It stopped writing new home loans last year.
Australia’s Westpac unit fined $13 million for home loans misconduct
