Hidden mortgage offset failures costing Australians millions in lost interest savings
The regulator's announcement of review 26-173MR: banks paid over $55 million in compensation for offset failures, and weaknesses were found in how all eight reviewed banks set up, monitored and managed offset accounts.
"When offset accounts don't operate correctly, the harm can be hidden. Loan repayments stay the same, while customers unknowingly pay more interest and take longer to repay their loan."— Sarah Court, ASIC ChairRead the media release