Refund for TSB break fees miscalculation customers

The bank says it has identified three errors in the way it calculated the break fee it charges for early termination from 2008 to February 2016

These errors led to some customers being overcharged and some being undercharged.

TSB reported the errors to the Commerce Commission as a potential breach of the Credit Contracts and Consumer Finance Act (CCCFA) in April 2016.

Commissioner Anna Rawlings says she is pleased that TSB reported itself to the Commission once the issue was identified.

“TSB has fully co-operated with our investigation and it says the break fee calculation errors were unintentional.”

Rawlings says TSB is paying refunds to affected customers and is writing to customers who are entitled to a refund, but it will not claiming money from those it undercharged.

“It is also using its website to alert customers that it had inadvertently overcharged break fees on some affected loans.

“It will certify to the Commission that the necessary customer refunds have been made.”