HSBC Australia penalised $33k after breaching data rules
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The news: HSBC Australia has paid penalties totalling $33,000 after the competition regulator issued it with two infringement notices for alleged contraventions of the Consumer Data Right (CDR) rules.
The numbers: The Australian Competition and Consumer Commission (ACCC) investigated allegations that, from at least 20 February 2023 to 25 April 2023, HSBC failed to accurately disclose its fixed rate home loan interest rates, requested via the CDR.
The ACCC also investigated allegations that, from at least 9 January 2023 to 27 May 2023, HSBC failed to accurately disclose credit card account balance data after receiving consumer data requests.
The context: The infringement notices related to alleged failures by HSBC to disclose complete mortgage interest rate details and accurate credit card balances in response to separate requests for this data made via the CDR.
Some of the product data HSBC disclosed for its fixed rate home loan products did not include the corresponding featured interest rates advertised on its website.
The ACCC said that HSBC cooperated its investigation and has taken steps to improve its CDR compliance, including by rectifying data quality issues identified by the ACCC in its investigation.
What they said: ACCC commissioner Peter Crone said: “If accurate home loan rates are not provided, product data users, such as comparator sites and brokers, are unable to present accurate comparisons of home loan products to consumers. This has the potential to lead to consumers making decisions based on incorrect information about home loan interest rates on offer.
“For the CDR to be effective, it is critical that CDR data is of high quality. This means that product data and consumer data — which a consumer has consented to share — must be accurate, up-to-date, complete, and in the required format.
“The value of CDR and the importance of data quality is particularly relevant in the current economic climate where Australians are increasingly concerned with cost-of-living pressures and mortgage interest rates."
The source: ACCC media release
