TSB warned by Financial Markets Authority for overcharging customers $1.42 million

TSB Bank has been issued a warning by the Financial Markets Authority after it overcharged thousands of customers more than $1.4 million in fees it wasn’t supposed to.

The conduct relates to fees charged on business cheque transactions, which affected 7309 customer accounts.

Between November 30, 2017 and November 20, 2023, TSB charged a 25c fee on some business cheque transactions that shouldn’t have attracted the fee.

The error occurred after the bank changed the wording of its Business Cheque terms and conditions in November 2017 to make fees clearer.

However, it left out some transactions that the bank’s systems kept charging for, meaning what customers were told they would be charged and what they were actually charged didn’t match.