Published on December 15, 2017 5:56 am, by Pete Lalor
Earlier this week Westpac announced they were refunding $11m in interest charged to interest only home loan customers.
The refunds are being paid because Westpac failed to convert interest only home loans from interest only to principal and interest on the date specified in the loan contracts. Instead, customers were kept on interest only loans. As a consequence customers will have paid more interest than they should have and will now have less time to pay off their loan principal. The issue affected interest only loans between 1993 and August 2016.
Westpac have agreed to refund the additional interest that customers paid and discount the interest rate for the remaining term of the loan.
Westpac has said they will contact all affected customers, however you can also contact Westpac on 1300 132 925 if you believe you are affected or have questions about the refunds.
You can read more in the ASIC media release.
Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.