Bank of Queensland ordered to repay $12 million on offset account blunder.

Monday 08 April 2013

Article by Mozo

Bank of Queensland home loan customers will be keeping an optimistic eye on their mailbox this week with the bank now notifying customers who are in line for a refund on their home loan.

Money refunded from home loans by Bank of Queensland

The Australian and Securities Investment Commission has ordered the bank to refund $12 million, after it was discovered that around 6000 home loan customers may have been overcharged on their loans interest charges, reports the News Limited Network.

The Bank of Queensland noticed on the 12 October that it had made an honest discrepancy and immediately reported the issue to ASIC. The bank is now inspecting its systems and working to resolve the issue, as well as identifying customers concerned who will be notified by mail if they have been affected.

According to a statement by ASIC, "In this case, BOQ failed to link some offset accounts to home loan accounts, which meant that money held in those offset accounts did not reduce the interest payable on the home loan accounts. As a result, borrowers paid more in interest than they should have done." 

The bank has advised that none of it's home loan customers will be left at a loss from the error, reports SmartCompany.com.au

"Due to the complexity of the error it is difficult to prove figures with pinpoint accuracy at this stage in respect to the total number of customers affected, over what timeframe and to what degree. However, on preliminary analysis, it appears that less than 1% of BOQ's total customer base will be impacted," BOQ said.

While no one would like to be caught in such a situation, there will no doubt be BOQ customers hoping they have not noticed paying more interest than they should have on their home loan, with a nice repayments now on the way.

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