Parties reportedly settle on $20mln figure to end civil proceedings
ASIC initiated civil penalty proceedings against RAMS Financial Group, a Westpac subsidiary, in June for alleged systemic misconduct in its home loan operations between June 2019 and April 2023.
ASIC accused RAMS of breaching the National Consumer Credit Protection Act by engaging with unlicensed referrers, failing to oversee its representatives, and allowing practices that exposed customers to financial harm.
Misconduct reportedly included falsified documents, fake employers and manipulated financial details to approve loans for ineligible applicants – actions that boosted franchisee commissions.
In response, RAMS acknowledged its compliance failings and has implemented a remediation program while seeking to resolve the matter with ASIC.
Westpac halted new home loan applications through RAMS in August 2024 and began integrating its $31.8 billion loan portfolio into Westpac’s main banking operations.
A Westpac spokesperson told MPA on Tuesday: “The agreement to resolve ASIC’s investigation into Westpac subsidiary RAMS Financial Group Pty Limited (RFG) was heard by the Court today.
“RFG closed the RAMS business to new home loan applications from 6 August 2024. RAMS customers continue to access services through the RAMS app, website and call centre.
“The proposed penalty was provisioned and included in Westpac’s 2025 Half Year Results.”
The AFR reported that both parties had agreed on a $20 million settlement to close the dispute.
