Westpac Slammed for $44 Mortgage Error, Judge Questions Bank Morality
A dispute over just forty-four dollars has sparked a courtroom drama exposing serious questions about bank practices and customer fairness. In a ruling that’s sending shockwaves through Australia’s financial sector, a New South Wales Supreme Court judge accused Westpac of lacking “basic commercial morality” after the bank refused for months to correct a trivial mortgage error that left a customer’s credit rating damaged.
The case revolves around Fiona Vinall, a homeowner whose mortgage repayments fell by a few dollars after an interest rate change last year. Misinterpreting the bank’s notice, she made a payment a month early, creating a shortfall of $44.11. That small mistake, however, was reported by Westpac-owned St George to Equifax Australia as a missed repayment, drastically lowering her credit rating. The consequence was immediate and severe: Vinall was unable to complete the purchase of a new home for herself and her daughter in Western Sydney because mortgage brokers flagged her credit as problematic.
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What followed was a months-long battle to have the record corrected. Despite Vinall making the shortfall good almost immediately, Westpac refused to remove the adverse information. Lawyers sent emails, court notices were issued and even staff from other judges tried repeatedly to reach the bank with no success. At one point, Justice David Hammerschlag considered the bank’s actions “obdurate” and legally unjustifiable. The situation escalated to the point where the judge ordered Westpac’s chief executive, Anthony Miller, to appear in court — a move described as unusual but necessary to compel action.
Over the weekend, the bank finally moved to correct the record and Miller’s court appearance was no longer required. Justice Hammerschlag’s ruling was scathing. He described Westpac’s refusal to fix the problem as “short on commercial morality” and “unconscionable,” highlighting the stark imbalance between the bank and an individual customer over what the court described as a de minimis issue. Beyond just the principle, the case underscores how even tiny errors can have profound consequences on ordinary people’s lives when banks fail to act responsibly.
Vinall’s case will now move to the District Court, where she will seek damages and Westpac has been ordered to cover her legal costs — which far exceed the original $44 shortfall. For customers, this case is a cautionary tale: clarity from banks isn’t just about convenience, it can directly affect access to housing and financial stability.
Stay with us as we continue to follow this story and its broader implications for consumer rights and banking accountability. Make sure you’re updated as this landmark case unfolds and what it could mean for customers everywhere.
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