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Westpac's RAMS Financial Group Penalized for Home Loan Misconduct
Federal Court Imposes A$20 Million Fine for Regulatory Breaches
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The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
RAMS Financial Group, a subsidiary of Westpac Banking Corporation, has been fined A$20 million by Australia's Federal Court for serious misconduct in its home loan practices between June 2019 and April 2023.
The Australian Securities and Investments Commission (ASIC) initiated the lawsuit, citing issues such as the use of falsified payslips to approve loans, engagement with unlicensed mortgage referrers, and inadequate oversight mechanisms.
The court determined that RAMS failed to implement sufficient checks and did not adequately protect customers from potential conflicts of interest. This case is part of a broader regulatory crackdown on Australia's banking sector, following a 2019 Royal Commission report that exposed systemic failings across the industry. ASIC’s Deputy Chair, Sarah Court, emphasized the necessity of safeguarding consumers from harmful lending practices.
In response to the findings, RAMS has ceased issuing new home loans and cooperated fully during the investigation, completing customer remediation in 2024. The financial penalty was accounted for in Westpac’s 2025 half-year financial results.
For borrowers, especially those with limited or poor credit histories, this incident highlights the importance of due diligence when selecting a lender. Exploring reputable no credit check loan providers can offer alternative financing options, but it's crucial to ensure these lenders adhere to ethical practices and regulatory standards to protect consumer interests.
Published:Saturday, 22nd Nov 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
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