Australia’s Federal Court has ordered Westpac’s mortgage brand RAMS Financial Group to pay A$20 million (about US$13 million) after finding widespread breaches in the way it arranged home loans, including approvals supported by falsified pay slips, Reuters said.
The ruling, prompted by a case brought by the Australian Securities and Investments Commission (ASIC), concluded that RAMS lacked adequate controls and governance between June 2019 and April 2023. The court found the lender dealt with unlicensed referrers and failed to ensure customers were not disadvantaged by conflicts of interest during that period.
Wholly owned by Westpac, RAMS targets first‑home buyers and self‑employed borrowers.
Westpac, in an emailed statement to Reuters, said RAMS cooperated with the investigation and completed customer remediation in 2024. The bank added that the penalty had already been provisioned and was included in Westpac’s first‑half 2025 results.
Read the judgement and order at ASIC
Read more at Reuters