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ANZ is paying out $70 million to mortgage customers after failing to pass on interest rate reductions and over-charging on home loan accounts.
The bank has recently begun sending letters to customers informing them of refunds, following a four-year review of its accounts by PwC, according to Fairfax Media.
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Customer complaints first alerted the bank to the problems in 2010.
ANZ’s Australian head of operations, Phil Chronican, attributed the errors to a manual processing system that is no longer in place, according to Fairfax.
‘‘Because the process of linking the accounts was a manual one, in some cases there was a delay between the loan being drawn down and the offset account being properly linked,’’ Mr Chronican said.
‘‘In most cases these things were fixed within a week, but the customer didn’t always get that credit.’’
Mr Chronican said all care is being taken to ensure all errors are rectified and future mistakes avoided, according to Fairfax.
‘We literally are going through every product, every terms and conditions booklet, and checking the systems against the products against the terms and conditions,” he said.
Around 235,000 ANZ customers are due a refund, with the average payout due close to $300.
