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Bank refunds almost $5 million to mortgage customers

Bankwest has refunded $4.9 million to 10,800 customers that were overcharged interest after the bank failed to link offset accounts to home loan accounts.

The Australian Securities and Investments Commission (ASIC) reveals Bankwest uncovered the error after an internal investigation into the operation of its offset accounts uncovered issues in the linking of offset accounts with home loans. Bankwest subsequently reported this to the regulator as a breach of its licence obligations.

According to ASIC, Bankwest has updated its systems to automatically link new offset accounts, and has contacted the affected customers (who had open accounts between 21007 and June 2016) to arrange refunds.

“It is critical that licensees ensure that their systems work properly so that promises made to customers about their bank accounts are kept,” says ASIC Deputy Chairman Peter Kell.

“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.”

Published on: Tuesday, February 07, 2017

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