Two of the nation’s major banks are refunding more than $21 million to thousands of customers affected by errors with their credit card practices.
Westpac has completed the repayment of $11.3 million to 3,401 customers that were impacted by the bank’s former credit card limit increase processes.
A review launched by the Australian Securities and Investments Commission in 2014 raised issues with the way Westpac was approving increases to credit card limits, and the bank in 2015 began reviewing customers that had since experienced financial difficulty.
The bank has since waived around $8.3 million in credit card balances as a result, and refunded around $3 million in fees an interest.
Westpac said it is committed to lending responsibly.
‘If we get something wrong, we will acknowledge it and will put it right for our customers,’ the bank said in a statement.
ANZ will hand back $10.2 million to 52,135 businesses that held Business One credit card accounts, after the bank failed to properly inform them of fees and interest charges.
ANZ reported to ASIC that it had either failed to disclose or had incorrectly disclosed interest rates, interest-free periods, annual fees and overseas transaction fees to some Business One customers from as early as 2009.
The lender has contacted affected customers to tell them they will receive a refund with interest.
ANZ has since updated its procedures and fee information for Business One, ASIC said.