6 days ago
ASIC sues Westpac's RAMS over alleged systemic misconduct writing home loans
Corporate regulator ASIC has sued RAMS, alleging it engaged in systemic misconduct when arranging home loans.
ASIC has accused the now-defunct Westpac brand of breaching its obligations under credit laws and engaging in "widespread unlicensed conduct" between June 2019 and April 2023.
The allegations include that RAMS staff submitted fake pay slips as part of mortgage applications, and altered customers' debts and expenses so they would meet loan serviceability requirements.
RAMS was owned by Westpac, which announced in August 2024 it would shut the RAMS brand and absorb its home loans into the broader group.
"RAMS allowed years of unlawful conduct to occur across its franchises, creating the opportunity for loans to be provided to customers who otherwise may not have qualified for those loans, and thereby increasing commissions earned by RAMS franchisees."
RAMS has admitted liability for the contraventions and remediated customers who were negatively affected by the misconduct.
