Westpac puts up its hands in home loan scandal

Tuesday 17 March 2009

Article by Mozo

Westpac has admitted guilt in preventing some of its customers from taking advantage of a special home loan interest rate.

Business Daily was alerted to the home loan scandal after readers complained that the bank had denied them the 4.99 per cent fixed interest rate when they applied for the loan, with sales staff insisting that the rate could be changed at any time, even after the contract had been signed.

"We got our application in well before the December 19 deadline, but we were told the bank could vary the offer at any time, including after we signed the loan documents," said Victorian customer Colin Winstanley.

Following allegations that the bank may have been mis-selling the product, spokesperson David Lording said that there had been an administrative fault.

However, the bank denied claims that its advertising strategy had been underhand.

The affair may prove unfortunate for Westpac at a time when the government is considering plans to protect Australians from unfair financial contracts.

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