Expert to oversee BOQ's repayment of overpaid intrest
AN INDEPENDENT expert has been appointed to ensure Bank of Queensland repays $12 million to around 6000 customers who inadvertently paid too much interest on their home loans because of a system error.
In October, BoQ discovered it had failed to link some eligible home loans to mortgage offset accounts over a number of years.
The error, which was attributed to a computer glitch, meant the money held in the affected offset accounts did not reduce the interest payable on the home loan accounts.
BoQ immediately reported the error to the Australian Securities and Investments Commission.
The independent expert, whose appointment was a requirement of ASIC, will oversee the bank's remediation processes to ensure all affected customers are identified and appropriately compensated, and that the bank's compliance systems are adequate to prevent a similar error occurring in future.
In its October statement BoQ said the process of repaying the money would begin in December and take a year
The bank also apologised for the error and said no customer would be disadvantaged.
ASIC Commissioner Peter Kell said BoQ had been co-operative in addressing the error.
"One of ASIC's roles is to ensure financial consumers can be confident in the conduct of the financial institutions they deal with. Central to this is ensuring financial services and credit are provided efficiently, honestly and fairly," Mr Kell said.
"Where errors do occur, it is important that they are identified as early as possible and appropriately rectified."
Customers affected by the error will be advised of their compensation.
There is no need to lodge a claim but customers who are concerned and want to discuss the matter can contact BoQ on 1300 557 272.