The Australian Securities and Investments Commission (ASIC) has initiated legal action against RAMS Home Loans, a subsidiary of Westpac, accusing it of “systemic misconduct” in its home loan arrangements. The allegations suggest that between June 2019 and April 2023, RAMS violated credit laws and engaged in extensive unlicensed activities.
ASIC’s allegations include serious charges that RAMS staff submitted fraudulent pay slips with mortgage applications and manipulated customer financial details—altering expenses and debts—to satisfy loan serviceability requirements. ASIC Deputy Chair Sarah Court emphasised that RAMS experienced a significant organisational failure by failing to oversee its franchise network adequately, which permitted such unlawful practices. This mismanagement allegedly resulted in loans being granted to individuals who may not have qualified, thereby boosting commission earnings for RAMS franchisees.
In August of the previous year, Westpac announced the suspension of new home loan applications under the RAMS brand, opting instead to integrate existing loans into its broader operations. RAMS has acknowledged its liability for these breaches and has taken steps to compensate affected customers.
ASIC is pursuing financial penalties and official declarations against RAMS as part of the legal proceedings, with the date for the initial court hearing yet to be determined. Westpac has stated that it will fully cooperate with ASIC in aiming to resolve the matter as promptly as possible.