Westpac Banking Corporation - Notification - N93790

Applicant(s)

  • Westpac Banking Corporation

Notification number(s)

  • N93790

Summary

In light of proposed reforms to the Australian Automated Teller Machine system due to start on 3 March 2009, Westpac proposes to enter an agreement with Macquarie Securitisation Limited, whereby Westpac will not charge customers of certain mortgage service providers that provide services in conjunction with Macquarie a `Direct Charge Fee' for using a Westpac ATM. Customers of institutions that do not have such waiver or discount agreements with Westpac will be charged the full fee. Westpac says the proposal will apply to customers of entities that have entered into arrangements with Macquarie called `white labelling', under which a financial product such as a home loan is provided to a retail customer but the issuer has an agreement with another financial institution (in this case, Macquarie) for the provision of processing facilities and/or the debt belongs to the other financial institution. Westpac identifies the `white-label' entities as Macquarie Mortgages, Aussie Home Loans, UBS (Oxygen), Omnity, Violet, Mortgage Street, Capital Trust, Future Financial Home Loans, 101 Mortgage, Virgin Home Loans and BMW Home Loan; and says the notification relates to, also, 131 unnamed mortgage managers who have a direct contract with Macquarie and provide non-branded card products.

On 13 March 2009 the ACCC indicated that it did not intend to take further action in the matter at this stage.