Members Equity Bank Limited (ME Bank)
(MEB1) 15 September 2021
ME Bank has appeared before the Federal Court, facing criminal charges for allegedly making false and misleading representations in letters to its home loan customers and allegedly failing to provide written notice about annual interest rate and repayment amount changes.
A total of 62 charges have been laid against ME Bank. 44 charges relate to letters issued by ME Bank to home loan customers between September 2016 and September 2018, which ASIC alleges made false and misleading representations about:
- Customers’ relevant annual interest rates.
- The minimum repayment to be paid after the fixed-rate period expired.
- The minimum repayment to be paid after the interest-only rate period expired.
A further 18 charges relate to ASIC allegations that, between December 2016 and February 2018, ME Bank failed to give written notice to home loan customers that their annual interest rates and minimum repayment amounts were changing after their interest only rate and/or fixed-rate period expired.
ASIC alleges this misconduct occurred due to failures in ME Bank’s systems and processes.
Court to determine the criminal penalties.