Bank of Queensland customers to be refunded
The Bank of Queensland (BOQ) will have to refund approximately $12 million to around 6000 mortgage customers following a system error, according to the Australian Securities and Investments Commission (ASIC).
The bank discovered the error that resulted in a failure to link mortgage offset accounts to some eligible home loan accounts over a number of years and reported it to the regulator.
BOQ has subsequently agreed to appoint an independent expert to review its remediation processes to ensure that all affected customers are compensated and that compliance systems are adequate to prevent a similar error occurring in future.
Some of the affected customers have already been compensated and BOQ will ensure that the remaining affected customers are contacted over the next 10 months, ASIC stated.
ASIC commissioner Peter Kell said one of the regulator's roles is to ensure financial consumers can be confident in the conduct of the institution they deal with.
"Central to this is ensuring financial services and credit are provided efficiently, honestly and fairly," he said.
"Where errors do occur, it is important that they are identified as early as possible and appropriately rectified."
ASIC added that there is no need to lodge a claim, but customers who are concerned and want to discuss the matter can contact BOQ.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
