Tag: Bankwest

Bankwest refunds $4.9 million for overcharging interest on home loans

ASIC says Bankwest, a division of the Commonwealth Bank of Australia, has refunded approximately 10,800 customers more than $4.9 million after it failed to link offset accounts to home loan accounts for some customers who had open accounts between 2007 and June 2016, resulting in customers being overcharged interest.

Following media coverage of ASIC’s work in relation to similar breaches by another bank, Bankwest undertook an internal investigation into the operation of its offset accounts. Bankwest identified issues in the linking of offset accounts with home loans and reported the matter to ASIC as a significant breach of its licence obligations.

ASIC Deputy Chairman Peter Kell said, ‘It is critical that licensees ensure that their systems work properly so that promises made to customers about their bank accounts are kept.

‘When a problem is identified, licensees not only have an obligation to report the breach, but impacted customers must be returned to the position they would have been in, had the breach not occurred.’

Bankwest has since updated its systems and processes, including the automatic linking of new offset accounts.

Bankwest has contacted those customers it has identified as being affected to explain the impact and has arranged refunds.

Customers with queries or concerns about this matter should contact Bankwest Customer Help Centre on 1300 334 805 (for retail customers), or the Bankwest Business Support Centre 13 7000 (for business customers). Alternatively, customers can complete an online form here.

Background

An offset account is a savings or transaction account that, when linked to a home loan, offsets the balance of the loan account, reducing the interest payable.

For example, a customer with a home loan of $500,000 and a balance of $20,000 in their offset account, would only pay interest on $480,000. If accounts are not properly linked, the customer would be charged interest on the full loan amount of $500,000.

Bankwest Reveals New Mortgage Product

From Australian Broker.

Today Bankwest has launched a new home loan product which offers a discount against the combined average standard variable rates offered by three of the major banks.

The new Bankwest Equaliser Home Loan, which is available to both owner occupiers and investors, offers a fixed discount off the combined average standard variable rate of three major banks (ANZ, NAB and Westpac).

With a discount for three years of 1.35% p.a. for owner occupiers and 1.00% p.a. for investors and a floor rate of 2.5% p.a., Bankwest general manager of broker sales Stewart Saunders said the new product demonstrated Bankwest’s ability to innovate in a challenging market.

“The banking sector needs to continually innovate and adapt to customers’ needs in our fast changing world. Our new Equaliser Home Loan is designed to give brokers and customers a competitive home loan option they have been asking for,” said Saunders.

“With so much uncertainty in the markets – on a state, national and international level – this new home loan gives people peace of mind they’ll be getting a competitive rate.

“We’ve listened to what our brokers and our customers are telling us and we know there’s a demand for a simple, no frills home loan which offers competitive rates that align consistently with the major banks.

“This product isn’t meant to be a ‘hero product’ but addresses a growing segment of customers who are looking for certainty in competitive rates.

“The Bankwest Complete package remains a very competitive offer which gives a competitive life of loan discount.”

The new Bankwest Equaliser Home Loan offers a discount against the average standard variable rate of three major banks for three years and then reverts to a competitive life of loan discount off the Bankwest standard variable rate and is available for new loans over $200,000 borrowing up to 80% of the property value, with principal and interest repayments only.