Australia: Bank loan glitch leaves Westpac customers out of pocket - - PressFrom - Australia
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AustraliaBank loan glitch leaves Westpac customers out of pocket

04:35  09 july  2019
04:35  09 july  2019 Source:   9news.com.au

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At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer LLOYDS Bank customers have complained of being shut out of their online accounts for more than two hours, as the bank suffers a technical glitch .

At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer But a glitch meant the interest-only period did not expire as scheduled, meaning Westpac , St George, Bank of Melbourne and Bank SA customers

Bank loan glitch leaves Westpac customers out of pocket© AAP A glitch meant Westpac customers may have been paying only the interest on their home loans for longer than expected. At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer than expected.

Customers had signed up for home loans which allowed them to pay just the interest for a number of years.

But a glitch meant the interest-only period did not expire as scheduled, meaning Westpac, St George, Bank of Melbourne and Bank SA customers were not paying down the principal as planned.

And as interest rates rose, unaware customers would have found themselves out of pocket.

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Westpac has been forced to repay thousands of customers tens of millions of dollars following a glitch which incorrectly charged customers on their home

At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer But a glitch meant the interest-only period did not expire as scheduled, meaning Westpac , St George, Bank of Melbourne and Bank SA customers

The Herald Sun reports that Westpac became aware of the error in 2017, but it has only become public today.

The people affected should have already been contacted by the bank, Nine's Finance Editor Ross Greenwood said.

"They technically were out of pocket some thousands of dollars," he said."If went back 10 years ago, and you'd taken out an interest-only loan for five years for $300,000, it works out you are out of pocket some $2100."

Bank loan glitch leaves Westpac customers out of pocket© AAP The Westpac glitch has affected 40,000 customers. Anyone who took out a Westpac loan between 2009 and 2016 who is yet to contact the bank should do so.

The big question, Greenwood said, is why the bank did not notice the computer glitch for almost seven years.

Westpac General Manager for Home Ownership Will Ranken said that as a result of the error, the excess interest paid was refunded, and a lump sum to make up for future interest payments on the principal loan amount that had not been reduced would be provided.

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How you could be owed BIG money: Major Australian bank is ordered to pay tens of millions of dollars to its customers who were hit with incorrect charges The error left many customers continuing to pay interest only loans long after the agreed upon period when they should have been switched over to a principal and interest loan.

Bank loan glitch leaves Westpac customers out of pocket . At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer than expected.

Bank loan glitch leaves Westpac customers out of pocket . At least 40,000 Westpac customers were left out of pocket after a computer glitch saw them paying just the interest in their home loans for much longer than expected.

"Customers who were not ahead of repayments paid excess interest when their home loan did not switch to principal and interest at the correct time had to be remediated," he said in a statement to 9News.

"Many of these customers have already been refunded and we are working hard to complete this remediation program."

Customers who need additional support will be "proactively contacted".

"Our approach is to ensure no customer pays more interest over the original loan term as a result of this error," Mr Ranken said.

"We apologise to customers impacted and want to assure our customers that we have since introduced an automated switching process to prevent this error occurring again."

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