ANZ to refund $70 million to Australian banking customers

Big four bank ANZ has admitted to making serious errors, mischarging customers with mortgage offset accounts and other home loan products and had started the six week process of handing the money back.

It is estimated that hundreds of thousands of ANZ banking customers were affected but the bank as said they would make sure to include a compensation amount in the payment.

Due to a series of small errors dating back as far as 2003 about 235,000 accounts have been affected by the glitch with customers incorrectly charged interest rates on their home loans

ANZ chief executive officer Phil Chronican said the bank was handling the matter as quickly and efficiently as possible to ensure customers got their money back.

"We've identified in a large number of cases the discounts that apply to our packaged mortgages and also the way in which offset accounts have been linked wasn't done properly when many of the account were set up or changed,'' he said.

"As a result of that we've identified the number of customers who have been charged the wrong amount of interest.”

"We've gone back over a number of years and identified the issue, fixed it and we will be sending out letters to customers and sending them refunds for any overpaid interest as a result of this issue."

The average amount to be returned to each customer is $300 but it is expected to take up to six weeks for the full $70 million to be given back to customers.

The money will be credited to customers' accounts, or if the account has since been closed customers would receive a cheque in the mail.

Customers are invited to contact the bank to find out if they have been impacted by the glitch on 13 13 14 or by visiting any ANZ branch.