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 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.
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."
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 has been approached for comment.
© Nine Digital Pty Ltd 2019