NAB refunds $1.7m for overcharging interest
National Australia Bank (NAB) is refunding $1.7 million to 966 home loan customers after it failed to properly set up mortgage offset accounts, according to the Australian Securities and Investments Commission (ASIC).
NAB’s internal review, conducted after customer complaints, found that between April 2010 and August 2017 it had not linked some offset accounts to broker originated loans, which resulted in those customers overpaying interest on their home loans.
NAB reported the issue to ASIC and engaged PwC to review the remediation approach and to ensure NAB compliance systems would prevent a similar error from occurring in the future.
Acting ASIC chair, Peter Kell said: “Consumers should be confident that when they sign up for a home loan they are receiving all of the benefits that are being promoted.
“Where there are errors there should be timely and appropriate action to ensure that customers are not any worse off as a result pf the mistake.”
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