Westpac: Australia bank pays out over charging dead people

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The Australian banking giant has admitted to breaking the law after it was hit with six lawsuits by regulators over its poor treatment of customers.

It will pay $81m in penalties, subject to court approval.

The bank will compensate its customers.

The Australian Securities and Investments Commission (ASIC) said that the compliance culture at Westpac needs to be improved.

"The conduct and breaches alleged in these proceedings caused widespread consumer harm and ranged from everyday banking to financial advice and insurance," the deputy chair of the Australian Securities and Investments Commission said.

Over a 10-year period, the bank charged more than $7 million in fees to more than 11,000 customers who were dead, according to an investigation by the Australian Securities and Investments Commission.

More than 7,000 customers were caused to pay for two or more policies by the distribution of duplicate insurance policies by the same company.

At least 25,000 customers were charged more than $5 million in fees that had not been disclosed.

The allegations were filed in the federal court.

"In each of these matters, our customers expect us to meet our standards and that's why we've fallen short of that."

Our processes, systems and monitoring should have been better. Peter King, the chief executive of Westpac, apologized to his customers.

It's the latest blow for the bank. It agreed to pay a record $930m fine in September last year for violating money-laundering laws.

Brian Hartzer stepped down as chief executive of the bank after it became involved in the money-laundering scandal.

The national inquiry into Australia's scandal-plagued financial sector proposed sweeping changes to the industry in an attempt to end rampant misconduct.

The Royal Commission investigated wrongdoing by some of the country's biggest institutions.

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The Australia bank inquiry said they didn't care who they hurt.