TSB repays $1.73 million after mistakenly charging business customers for six years
TSB identified that over 7,300 business accounts were wrongly billed a 25-cent cheque fee from late 2017 to 2023 and has refunded $1.73 million.
An internal review at TSB revealed that more than 7,300 business clients were charged a 25-cent fee on certain cheque transactions that, according to the bank's own terms, should have been free. The overcharging spanned from November 30, 2017 until November 20, 2023, prompting the Financial Markets Authority to issue a public warning about the bank's practices. Acting head of perimeter and response Trish Millward said customers had no realistic way to spot the mistake, underscoring a broader lesson for the sector about aligning system updates with policy changes.
TSB chief executive Kerry Boielle issued an apology, confirming that $1.73 million has been returned, including $1,425,127 in fee refunds, $10,404 in interest and charges, and $299,269 as compensation for the use of the funds. The regulator noted TSB’s cooperation and the largely completed repayments as reasons for issuing a warning rather than further sanctions. The bank also said it has strengthened its processes to ensure fees are clearly described and correctly applied in the future.
