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CBA tempts thousands after glitch allows customers to overdraw

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Banking errors have dominated the Royal Commission hearings, with customers overcharged on their home loans or given personal overdrafts they couldn’t afford.

Customers have received $2 million in refunds from the major banks after they were overcharged on their home loans.

Under cross-examination, Head of ANZ Home Loan Products Sarah Stubbings says it took until 2013 to compensate customers.

A $63.9 million remediation program then began in 2014.

The hearings also heard how the Commonwealth Bank automatically approved personal overdrafts, even though living expenses weren’t included in the calculation.

CBA’s Clive van Horen blamed the problem on a computer glitch which resulted in nearly 10,000 customers receiving overdrafts they weren’t able to repay.

The fault took four years to detect.

Ross Greenwood speaks with Macquarie Radio’s Political Editor Michael Pachi for details.

“The banks are dragging the chain in getting that compensation and remediation worked out.”

Listen to the full update below