Anz in 13m customer payout

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BANKING giant ANZ will pay $13 million in compensation to 200,000 customers after failing to pay them enough interest on their savings accounts.

The corporate regulator says ANZ failed to accurately apply bonus interest to its Progress Saver Accounts for several years. ANZ reported the mistake to the Australian Securities & Investments Commission after a customer complained.

ANZ is contacting and providing refunds to affected past and present PSA holders, a process that should be completed by the end of this week, ASIC said in a statement on today.

The bank had misaligned the monthly cycle it applied to determine whether a progress saver account holder was eligible for bonus interest payments and the monthly cycle it used to calculate those payments. The issue affected customers who made deposits or withdrawals near the end of their monthly interest cycle.

ANZ discovered the problem after a customer complained and reported the issue to ASIC.

ANZ has taken its breach reporting obligations seriously in this matter, ASIC deputy chairman Peter Kell said.

Breach reporting helps ASIC ensure affected consumers are returned to the position they would have held if it were not for the breach occurring at all, Mr Kell said.