The Commerce Commission has announced it has filed civil proceedings against The Co-operative Bank in the High Court. The proceedings follow a self-report by The Co-operative Bank to the Commission and it has admitted the breaches.
Mark Wilkshire, Chief Executive Officer of The Co-operative Bank, said:
"We take our responsibilities to customers very seriously, and we regret that some of our historical practices did not meet the standards required. We identified the issue, self-reported it to the Commission, and have worked hard to put things right for affected customers, both present and past. We’re committed to doing better for our customer-owners."
The matter relates to compliance with the Credit Contracts and Consumer Finance Act (CCCFA) in respect of some historical credit fees generally charged under consumer credit contracts up to November 2021.
We are now in the final stages of remediating all impacted customers affected by the historical issues.
The Co-operative Bank has co-operated with the Commerce Commission’s investigation. Having admitted the breaches, the matter will now progress to a hearing at which the Court will determine the appropriate penalty. The Commission and the Co-operative Bank are aligned on a recommended penalty amount. The Co-operative Bank has previously provided for potential penalties, so it is not expected to have an impact on the Bank’s results for the financial year to 31 March 2026.