Kiwibank Faces FMA Warning for Overcharging Customers $912,000

The Financial Markets Authority (FMA) has issued a warning to Kiwibank for overcharging customers by more than $912,000 over a span of 13 years. The FMA’s investigation revealed that between July 2011 and November 2024, the bank failed to apply fee waivers for certain joint account holders, impacting a total of 8,663 customers.

Kiwibank acknowledged the FMA’s findings, stating that the issue was self-reported. The bank expressed regret for the errors that led to the overcharging, emphasizing their commitment to address the situation.

Steps Taken for Reimbursement and Compliance

In response to the FMA’s warning, Kiwibank has taken decisive action to reimburse affected customers fully. The financial institution has also implemented measures to enhance its internal policies, systems, and controls to ensure similar issues do not occur in the future.

“We take this matter seriously and regret the error that led to some customers being overcharged,” a spokesperson for Kiwibank stated. They further assured customers that the bank is dedicated to restoring trust and maintaining transparency.

The FMA’s warning serves as a reminder of the importance of compliance in the financial sector, particularly regarding customer fees and service charges. It reflects the authority’s ongoing commitment to protecting consumers and upholding market integrity.

As Kiwibank works to resolve this issue, customers are encouraged to reach out to the bank for details on the reimbursement process. The situation highlights the critical need for financial institutions to maintain rigorous oversight and ensure that all customer accounts are managed correctly and fairly.

The FMA’s actions signal a strong regulatory stance on financial accountability in New Zealand, reinforcing the need for banks to adhere strictly to consumer protection guidelines.