BANK ERRORS IN THE NEWS
CBA to pay out $80 million in refunds to customers
“Commonwealth Bank will pay refunds to 216,000 customers for failing to honour discounts on mortgage interest rates and fees that it had promised, mistakes that meant borrowers were overcharged … which date as far back as 2008.”
Bank of Queensland to refund customers $34.5m
“The Bank of Queensland will refund customers $34.5 million after it discovered it had incorrectly applied interest rates and fees. The bank says about 4 per cent of its customers were affected by the errors, some of which date back to 2004.”
ANZ to refund $70m after overcharging interest repayments for mortgage accounts
“About 235,000 ANZ home loan customers will receive refunds totalling roughly $70 million after being overcharged for interest repayments … errors that in some cases date back to 2003.”
Westpac clients to get $8m in refunds
“UP TO 40,000 Westpac customers are set to share an $8 million refund package after the bank discovered they had missed out on certain discounts that should have been offered to them when they signed up to a specially tailored mortgage offer.”
NAB and Bankwest forced to repay customers: ASIC
“Bankwest, a division of the Commonwealth Bank of Australia, has refunded $4.9 million to 10,800 customers after it failed to take into account customers’ offset accounts when calculating interest on home loans.”
High Error Rates in Loan Statements
“Past surveys have shown a high rate of calculation errors in home loan statements by lenders. There is no such thing as a perfect system, mistakes are a fact of life and that’s why you should keep a close eye on your home loan …”
DO YOU TRUST YOUR BANK?
Signing up for a mortgage is one of the biggest financial decisions you will ever make, and with a little planning and discipline you can turn it, and your home, into one of your most successful long-term investments.
Unfortunately most of us fall into the trap of letting our banks manage and plan our loans, and year after year:
- We let the bank tell us how much to repay and how often, and
- We let the bank calculate our interest charges and fees.
But, what if the bank gets it wrong? We all make mistakes, and your lender is no exception. A simple human error or computer glitch can add thousands in interest to your mortgage if left undetected.
And what if their repayment schedule isn’t right for you? Lenders want you to pay off your mortgage over the full term, maximising the amount of interest you pay on your loans.
With so much of your money at risk, should you really be letting someone else manage your mortgage?
Why Check For Bank Errors?
Bank errors can happen at any time over the life of your loan (and more than once!), and if left undetected even the smallest of errors can compound away adding thousands of dollars to your loan repayments.
If left undetected the errors will cost you thousands in interest charges,
When errors are found the error you are able to go to her bank, point out their mistake, and get a full refund.
What People Are Saying
- Hemil from Brisbane in QLD found his initial rate was set to 5.14% instead of 5.04%.
- Michelle from Joondalup in WA found that $10,823.47 she had made in extra repayments over the past 2 years hadn’t been applied to her loan correctly.
- Quoc from Croydon in VIC found his lender had incorrectly calculated his interest charges.
- Matthew from Perth in WA found that a 0.75% discount agreed with the bank had not been applied to his investment loan. On an average balance of $177,000 the bank would have overcharged him over $39,325 in extra interest if he had not found the error.