Does this bank owe you money?
Westpac has been forced to compensate around 40,000 customers who have been overcharged on their mortgage repayments, in the latest fallout from last year’s banking Royal Commission, reports The New Daily.
Australia’s second biggest bank is on track to paying close to a $100 million after discovering the customers had been charged too much when their loans switched off “interest-only” payments.
The bank blamed manual processing errors, which left a large portion of borrowers on the interest-only loans instead of being transferred to principal and interest once the interest-only period had expired.
The bank has been in touch with customers, sending letters explaining how the 40,000 will be remediated for paying excess interest. A further 30,000 who were ahead of their mortgage repayments suffered no financial impact and will not be remediated.
Westpac says impacted customers can contact their specialist bankers on 1300 132 925 8am-8pm Monday to Friday and 9am-5.30pm Saturday (AEST).