Westpac has made an expensive blunder – overcharging customers by $6.3 million. 

25,000 customers are affected. 

The Financial Markets Authority (FMA) has launched civil proceedings against the bank and both parties have agreed to resolve the matter. 

Massey University banking expert Dr Claire Matthews tells Tim Beveridge from a monetary perspective the mistake is not that big for Westpac, though may have a large impact on the customers affected. 

Matthews says this, along with recent action with Kiwibank and ANZ shows the FMA is being more proactive in its regulatory role. 

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