The issue will affect customers who held Premier Advantage Packages with Westpac or Advantage Packages with St. George, BankSA or Bank of Melbourne from 2010.
Under the terms of the packages, customers automatically received discounts on products such as home loans, credit cards or transaction accounts, but some customers missed out on discounts for other products such as home and contents insurance and term deposits.
Westpac Chief Executive, Consumer Bank, George Frazis issued an apology to affected customers today and said the bank has notified the Australian Securities and Investments Commission (ASIC).
“Westpac apologises unreservedly for a process that did not suit customers,” he said.
“When we identified these issues we started the process of putting things right for customers.
“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.”
The packages have since been simplified and all benefits are now automated, according to Westpac.
Mr Frazis said some customers with various business banking packages may have also missed out on benefits, but were set to receive refunds.
Westpac will contact affected customers by the end of 2018. Check their website for further information.