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ASIC sues Westpac subsidiary RAMS for systemic home loan misconduct

The subsidiary admitted liability for falsifying pay slips with alterations to borrower expenses before remediating affected customers; its first court hearing is yet to be scheduled.

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A Westpac logo is seen on a building in Sydney, Australia, May 5, 2025. REUTERS/Hollie Adams/File Photo
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Overview

  • ASIC alleges that between June 2019 and April 2023 RAMS staff fabricated pay slips and misrepresented borrowers’ expenses and liabilities to meet home loan serviceability requirements.
  • The regulator’s lawsuit in Federal Court seeks civil penalties for alleged systemic breaches of credit laws and unlicensed conduct across the franchise network.
  • RAMS has admitted liability for the contraventions and remediated customers who suffered financial detriment.
  • Westpac closed RAMS to new home loan applications in August 2024 and absorbed its A$31.8 billion loan book into its broader operations.
  • The first case management hearing is yet to be scheduled and Westpac says existing provisions should cover any financial consequences of the proceedings.