Kiwibank to pay customers $5.2 million over home loan failings

The Commerce Commission has forced the state-backed lender to pay up after it admitted failings relating to home loan variation disclosure policies, procedures, and systems.

Variation disclosure is disclosure that banks must provide when a loan contract is varied unilaterally or by agreement. 

The case dates back to August last year, when Kiwibank told the Commission that it failed to have proper systems in place in the period before April 2019.

Commission chair Anna Rawlings said Kiwibank did not disclose information to customers when they made simple changes to their mortgages, such as re-fixes or changing repayment amounts.