Westpac's RAMS Financial Group Penalised for Home Loan Misconduct

The misconduct, occurring between June 2019 and April 2023, involved the use of falsified payslips to approve loans, engagement with unlicensed mortgage referrers, and inadequate oversight mechanisms. Such practices not only contravene legal standards but also undermine consumer trust in financial institutions.

This case is part of a broader crackdown on Australia's banking sector, which has been under scrutiny since the 2019 Royal Commission report exposed systemic failings across the industry. ASIC's Deputy Chair, Sarah Court, emphasised the importance of protecting consumers from harmful lending practices, stating that financial institutions must maintain rigorous compliance to prevent such misconduct.

In response to the findings, RAMS has ceased issuing new home loans and has cooperated fully during the investigation. The company completed customer remediation in 2024, addressing the issues identified. Notably, the financial penalty was already accounted for in Westpac’s 2025 half-year financial results, indicating the bank's proactive approach to resolving the matter.

For consumers, this case serves as a reminder of the importance of due diligence when engaging with financial institutions. It also underscores the necessity for banks to implement robust compliance frameworks to prevent similar incidents in the future.