Westpac has put its money where its mouth is, as it prepares to reimburse customers to restore their trust.
Westpac has announced today it will reimburse $65 million to more than 200,000 customers.
The total refund will be divided between customers who did not originally receive the benefits they were entitled to as holders of Westpac’s Premier Advantage Packages, or Advantage Packages (from 2010) through St George, BankSA, or Bank of Melbourne.
It is understood some customers did not receive discounts on ancillary products such as home and contents insurance and term deposits. This has since been remedied, with all benefits now automated.
Westpac’s announcement is a major step forward in its objective to rebuild the trust customers have lost in the big banks.
Chief Executive of consumer banking, George Frazis, apologised for the oversight and said the bank was committed to righting past wrongs.
“At Westpac, our business depends on building long term relationships with our customers. So when we get something wrong, we want our customers to have confidence that we will put it right,” he said in a statement released today.
“When we identified these issues we started the process of putting things right for customers. We also notified ASIC.
“Importantly, customers do not need to do anything. Over the coming months, we will provide refunds, including appropriate interest, to any customers who may have been entitled to a benefit but weren’t aware they needed to opt in.
“Westpac apologises unreservedly for a process that did not suit customers. By automating the discounts, we have ensured that our customers will not be affected in this way again.”
Mr Frazis said that some customers with various business banking packages may also not have received some of the benefits they were entitled to. Affected business customers will also receive refunds.
This follows CEO Brian Hartzer’s address to the House of Representatives Economics Standing Committee last week. He said Westpac was fully compliant with anti-laundering regulations in the wake of a class-action law suit being filed against CBA.