ANZ to pay customers $29m after error in loan payment calculator in 2016

ANZ to pay customers $29m after error in loan payment calculator in 2016
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ANZ has announced it will pay $29 million to customers who were charged the wrong amount of interest on their loans after the bank made incorrect calculations.

Between June 2015 and May 2016, the bank had an issue with its loan calculator which caused some customers' interest to be left out when loan repayments were calculated.

About 100,000 customers shared a payment of $6 million in 2018 due to the error, but some of these customers will receive a further payout.

ANZ, along with the Commerce Commission, has agreed it will pay a total of $29.4 million to some of the directly affected customers. 

"In 2018, we wrote to impacted customers, and if customers were underpaying because of the problem, we gave them a credit, so customers paid less than they'd agreed to under their loan agreement," ANZ's managing director of retail and business banking Ben Kelleher said.

He believes the initial payment of $6 million was "fair and better" than overseas examples, but chose to make a further payment to customers after speaking with the Commerce Commission.

The loan calculator was introduced in 2015 following changes to consumer lending legislation to help calculate repayments and loan terms when customers asked for changes. But an error in the calculator's code was found in June 2016 which caused some interest customers were due to be charged to be left out after their loan was changed.

"ANZ is sorry this issue happened. We worked quickly to fix the problem, owned up to it, and we've made sure no customers are disadvantaged. We'll begin to make the further payments to relevant customers over coming months," Kelleher said.

About 86,000 accounts will receive the extra payment.