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NAB to remediate thousands of mortgage customers

The major bank will be required to remediate almost 5,000 additional home loan customers that were overcharged interest after it failed to properly link their loans to offset accounts.

The Australian Securities and Investments Commission (ASIC) has released an update concerning NAB’s remediation of mortgage customers that were overcharged after the bank failed to properly link offset accounts to broker-originated home loans from between April 2010 and August 2017.

NAB has identified an additional 4,930 customers requiring remediation, taking the total to 6,522, with refunds payable totalling over $8 million.

In a statement to Mortgage Business, a NAB spokesperson said: “We’re taking action to earn back the trust of our customers and remediating affected customers as quickly as possible and fixing the issues that caused our failures so they don’t happen again.”

NAB has not been able to reach 567 customers for total refunds payable of $593,546.

NAB has noted that where the refund is less than $500, it will pay such amounts to the NAB Foundation, while it will hold on to refunds over $500 for a period of seven years before handing it over to ASIC as part of unclaimed money.

In the event that a customer contacts NAB about this refund, the bank said it would honour all refunds or direct the customer to unclaimed money.

 [Related: CBA weakness ‘not unique’ in industry]

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