Bank refunds $4.9m for overcharging interest on home loans

Bank refunds $4.9m for overcharging interest on home loans

by 0 comments

A major bank-owned mortgage lender has refunded $4.9 million to approximately 10,800 customers after it failed to link some offset accounts to home loan accounts, resulting in customers being overcharged interest.

Following media coverage of ASIC’s work in relation to similar breaches by another bank, Bankwest undertook an internal investigation into its offset accounts.

Bankwest identified issues in the linking of offset accounts with home loans for some customers who opened accounts between 2007 and June 2016. It reported the matter to ASIC as a significant breach of its licence obligations. 

It is critical that licensees ensure that their systems work properly so that promises made to customers about their bank accounts are kept, ASIC deputy chairman Peter Kell said.

When a problem is identified, licensees not only have an obligation to report the breach, but impacted customers must be returned to the position they would have been in, had the breach not occurred.

Bankwest has since updated its systems and processes, including the automatic linking of new offset accounts. The lender has contacted the customers it identified as being affected to explain the impact and arranged refunds.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How effective are testimonials as a marketing tool?

Not effective at all
Somewhat effective
Very effective
They are the most effective tool there is
Do you have an industry update?