Bank refunds $4.9m after overcharging interest on home loans

by AB02 Feb 2017

Bankwest, a division of the Commonwealth Bank of Australia, has refunded approximately 10,800 customers more than $4.9 million after it failed to link offset accounts to home loan accounts for some customers who had open accounts between 2007 and June 2016, 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 the operation of its offset accounts. Bankwest identified issues in the linking of offset accounts with home loans and reported the matter to ASIC as a significant breach of its licence obligations. 

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

'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.

Bankwest has contacted those customers it has identified as being affected to explain the impact and has arranged refunds.

COMMENTS

  • by Tom 2/02/2017 9:36:50 AM

    I'm sorry but this is hilarious. I warned them when I worked there to fix their processes, but did they listen to me.
    Serves you right Bankwest for not evolving with the times fast enough.

  • by 24/02/2017 4:40:39 PM

    Tom I'm about to loose my house and I had made them aware of interest overcharges last month but because I'm with collections I'm afraid they have over looked me and if that's the case I need to know what exactly where the names of these accounts and how can I make sure I'm being taken seriously .. My calculations have them owing me at least $25000 which would save my home.. I only owe $75,000 and they are threatening to take my home over $1500 ..please help