NAB Have Made A 1.7 Million Dollar Error
National Australia Bank have charged almost 1000 customers too much interest on their mortgage, forcing the bank to refund them a total of $1.7 million.
It is believed that the error occurred when NAB failed to correctly set up their offset accounts.
The bank conducted its own review and discovered that between April 2010 and August 2017, it had not linked some offset accounts to loans set up by brokers. This meant that money kept in the accounts did not decrease the interest payable on customers home loans.
NAB reported the issue to the Australian Securities and Investments Commission and employed financial services firm PwC to assist in correcting the error and making sure that similar errors do not occur in the future.
The ASIC confirmed on Tuesday that NAB had refunded the money owed to 966 home loan customers. Peter Kell, the acting chair for ASIC said that timely action should always be taken after a mistake is made to ensure that customers are not left worse off.
"Consumers should be confident that when they sign up for a home loan they are receiving all of the benefits that are being promoted," he said.