Banking scandal costs borrowers millions in offset errors

ASIC has uncovered a major banking scandal affecting thousands of Australian mortgage customers whose offset accounts were never properly linked to their home loans, resulting in millions of dollars in overcharged interest. Eight major lenders, including three of the big four banks, have been found responsible for the error, with over $55 million already paid in compensation for offset account failures between 2024 and 2025. The problem stems primarily from human error, as most banks still manually link offset accounts to mortgages.See omnystudio.com/listener for privacy information.