Westpac to refund $65 million to customers

Westpac has announced it will provide refunds to customers who hold ‘packaged’ accounts after approximately 200,000 customers did not receive benefits they were entitled to.

The affected customers have held Premier Advantage Packages with Westpac or Advantage Packages with St George, BankSA or Bank of Melbourne from 2010.

As identified in the terms and conditions, customers should receive benefits and discounts on core products such as home loans, credit cards, or transaction accounts. Unfortunately, many did not receive discounts on ancillary products such as home and contents insurance and term deposits.

In a statement released yesterday, George Frazis, Westpac Chief Executive, has stated that their 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.”

 “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,” said Mr Frazis.

This refund comes at a time of scrutiny on the big four banks, with Commonwealth Bank having to refund around $10 million to customers who were sold “unsuitable” consumer credit insurance.

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