Banks charged mortgage holders $55m in extra interest after offset account errors, Asic finds
The Australian Securities and Investment Commission (ASIC) found that banks have overcharged mortgage holders $55 million due to errors in linking offset accounts. The regulator criticized banks for failing to manage basic administrative processes, leading to significant financial losses for customers.
In one case, a bank accidentally unlinked a customer’s offset account when processing a change to their mortgage. That went undetected until the customer noticed their higher repayments and complained. In one case, a bank accidentally unlinked a customer’s offset account when processing a change to their mortgage. That went undetected until the customer noticed their higher repayments and complained. Asic Banks charged mortgage holders $55m in extra interest after offset account errors, Asic finds Australian banks ‘not getting the basics right’, regulator says after review of more than 200,000 home loans
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