Westpac will pay around $3.7 million to nearly 20,000 customers who were affected by a credit card blunder.
An error during an IT system upgrade meant the new credit card customers were sent a card without a welcome letter containing disclosure information between May 2017 and March 2018.
The bank reported itself to the Commerce Commission, which filed proceedings for Westpac's failure to provide information required under the law.
Westpac is contacting the customers to inform them of the payout.
“We apologise to all the card holders affected and want to reassure our customers that our systems and processes have been upgraded," said Westpac's Gina Dellabarca.
Initial disclosure information helps lenders understand their loan by providing details such as dispute resolution provider, hardship rights and how to cancel the loan.
Last year, a failure to correctly discount fees on a number of different banking packages led to Westpac having to refund 93,000 customers $7 million in fees.