The Commission ordered Standard Bank Malawi Limited to pay a fine of MK500,000.00 for engaging in unconscionable conduct in the trade of goods and services.
This followed an investigation which the Commission conducted which showed that the Bank opened interest earning Contract Save Accounts for a number of customers.
However, upon maturity of the contracts, the bank did not pay any interest thereby causing distress to consumers. This was despite several complaints raised by concerned consumers. The investigation further established that the bank engaged in deceptive / misleading advertising when it stated that the interest rate for the contract save account would be 8% when in fact they meant 8% per annum.
Accordingly, the Commission ordered the bank to clearly indicate the interest rate regime on their information materials. The Bank was also advised to conduct more sensitization of its customers on financial literacy.