The New Zealand Financial Markets Authority has issued a public warning to TSB Bank after it improperly charged NZD 0.25 fees on certain business cheque transactions between Nov. 30, 2017, and Nov. 20, 2023. The overcharging affected 7,309 customer accounts, and TSB has largely completed remediation totaling NZD 1.73 million, including fee refunds, related charges and interest, and compensation for the use of customers’ money. The issue arose after TSB revised its Business Cheque terms and conditions in November 2017 but failed to align its systems with the new wording, resulting in customers being charged for transactions not covered by the disclosed fees. TSB identified the issue in August 2023 and stopped the charges in November 2023, but did not notify the FMA verbally until December 2024 or in writing until February 2025. The warning reflects the duration and scale of the overcharging, as well as delays in regulatory reporting and customer refunds.
2026-09-21New Zealand Financial Markets Authority
New Zealand Financial Markets Authority warns TSB over six-year business account overcharging affecting 7,309 accounts
The New Zealand Financial Markets Authority has warned TSB Bank for improperly charging business cheque fees over six years, affecting 7,309 accounts. TSB has largely completed NZD 1.73 million in remediation, but the warning also reflects delays in notifying the regulator and refunding customers.