The Australian Securities and Investments Commission (ASIC) has filed a complaint with the Federal Court against Westpac.

filed a civil penalty action for failing to respond to the customer's hardship notice within the time required by law。

ASIC alleges that between 2015 and 2022, Westpac's online hardship notification process was flawed, resulting in 229 Westpac customers failing to receive responses to their hardship notifications within the required 21-day time frame.。

Westpac learns that all customers are experiencing financial difficulties。Many of these clients also spoke to Westpac about their difficult situation and vulnerability, including being unable to work, the impact of a serious medical condition or responsibility for care。

In some cases, customers have endured Westpac's debt collection activities while waiting for the bank to respond to a notice of difficulty。

Between September 4, 2017 and March 20, 2022, Westpac violated the national credit code, the regulator said.。Under the guidelines, lenders have 21 days to notify customers if they do not agree to contract changes or need more information to make a decision。

ASIC also accused Westpac of failing to act effectively, honestly and fairly in response to customers' hardship notices, in violation of the National Credit Act.。

The commission said Westpac did not do enough to investigate and correct system problems that plagued its online difficult notification process.。

ASIC is seeking a court statement, fine and adverse publicity order against Westpac。