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
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.
