BOQ expands compliance review
Bank of Queensland (BOQ) will expand its review into its compliance systems following further reports of errors in its interest rates and fees.
The bank self-reported a $12 million customer error to the Australian Securities and Investments Commission (ASIC) last year, which was caused by a failure to link mortgage offset accounts to some eligible home loan accounts over several years and resulted in borrowers paying more interest than they should have done.
ASIC’s action resulted in BOQ appointing an independent expert to ensure customers are refunded and compliance systems work properly, but an internal review identified further errors earlier this year - some dating back to 2004.
The regulator said the bank had confirmed it would refund an additional $34.5 million and pay another $11.5 million to fix these errors.
“We want to make sure the expert’s review leaves no stone unturned and all customers are appropriately compensated,” said ASIC Deputy Chairman Peter Kell.
“The review will also ensure that any necessary compliance system improvements are made to minimise the occurrence of similar errors in future.”
BOQ’s errors had impacted approximately 46,000 customers, according to the regulator, with refunds and remediation costs of $58 million.
The expanded review will look into the errors reported earlier this year and ASIC will be regularly updated on the progress.
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