Journal of Interdisciplinary History and Human Societies
Banking Transparency and Accountability: Examining Over-Charging Practices and Legal Responses in New Zealand and Sri Lanka
Abstract
Candauda Arachchige Saliya
This essay examines the recent legal issues faced by Kiwibank Limited, where the Commerce Commission filed criminal charges for breaches of the Fair-Trading Act, resulting in overcharging more than 36,000 customers a total of $7 million in fees and interest on home loans, credit cards, and overdrafts. Kiwibank’s systemic failures, which persisted for years, highlight the critical importance of robust financial systems and transparent practices in the banking industry. Similar concerns have arisen in Sri Lanka, where customers have reported unfair interest calculations on credit card balances, drawing attention to global challenges in ensuring fair treatment of banking customers.
The essay explores the regulatory frameworks in place, such as New Zealand’s Fair-Trading Act and the Financial Markets Conduct Act, as well as the broader implications of financial institutions’ accountability for consumer protection. By analyzing the Kiwibank case alongside comparable international examples, this study underscores the need for stronger regulatory oversight, accurate financial systems, and enhanced transparency to maintain consumer trust and uphold the integrity of the financial sector.
