Westpac Faces Renewed Scrutiny Amid RAMS Loan Misconduct

1

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

ASIC has accused RAMS of engaging in systemic misconduct, citing at least 84 incidents where Sydney and Melbourne franchises allegedly used fraudulent documents to approve loans that should have been disqualified. Westpac, which experienced a similar issue in 2018 when it was fined for approving over 10,000 unsuitable home loans, faces a possible penalty exceeding $100 million. However, the final sum may be closer to $30 million.

This unfolding situation is crucial as it highlights ongoing governance challenges within Westpac and raises consumer trust concerns in Australia’s financial institutions. In the wake of previous scandals and the Royal Commission's findings into sector misconduct, this revelation underscores persistent issues with compliance and oversight.

The allegations not only cast a shadow on Westpac’s internal controls but also affect public confidence in Australia's banking system. For consumers, it signifies potential risks of financial hardship linked to irresponsible lending practices, impacting countless borrowers who may have unknowingly been granted unaffordable loans.

As ASIC prosecutes this case, the outcome could influence regulatory approaches and potentially lead to stricter governance practices throughout the financial industry. Legal and financial experts anticipate that Westpac's response and any resulting legal judgments will guide how banks assess and approve loans.

The coming months may see increased regulatory oversight and policy changes as ASIC aims to curtail similar occurrences in the future. Additionally, as Westpac navigates these allegations, it may focus on enhancing its compliance frameworks to restore organisational reputation and consumer trust.

Published:Friday, 6th Jun 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Hanwha's Stake in Austal: Australia's Conditional Approval

13 Dec 2025: Paige Estritori

In a significant development for Australia's shipbuilding industry, the Australian government has approved South Korean conglomerate Hanwha's proposal to increase its shareholding in Austal Limited from 9.9% to 19.9%. This decision comes with stringent conditions aimed at protecting national security interests. - read more

Yamaha Tops Australian Marine Market Searches Ahead of Summer

13 Dec 2025: Paige Estritori

As Australia gears up for the summer season, Yamaha has solidified its position as the most-searched marine brand in the country. According to Retain Media's Q3 2025 Marine Market Brand Consideration Report, Yamaha holds an 8.4% share of search queries, maintaining its lead from the previous quarter. - read more

South Australia Invests in Advanced Coastal Research Vessel

13 Dec 2025: Paige Estritori

The South Australian government has committed $44 million in the 2025-26 State Budget to fund a new state-of-the-art coastal research vessel. This 37.7-metre vessel is designed to support a wide range of marine research activities, including fisheries, aquaculture, climate science, and oceanography. - read more

AFCA Advises SMEs to Verify Lender Membership

13 Dec 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently highlighted a critical issue affecting small and medium-sized enterprises (SMEs): the necessity of verifying a lender's membership status before securing business financing. This advisory comes in response to a significant number of complaints that AFCA is unable to address due to the lenders' non-membership status. - read more

Coalition Proposes Easier SME Loans Without Home Collateral

13 Dec 2025: Paige Estritori

In a recent policy proposal, the Coalition has advocated for easing lending regulations to facilitate small and medium-sized enterprises (SMEs) in obtaining business loans without the necessity of using their homes as collateral. This initiative is part of a broader effort to support the SME sector by addressing one of the significant barriers to accessing finance. - read more

Click for more Finance News