The Bank of Queensland is refunding an estimated $12 million to about 6000 customers who paid more interest on their home loan accounts than was necessary, following an ongoing system error.

The error meant that over a number of years some eligible home loan accounts were not linked to Mortgage Offset Accounts.

The franchised bank discovered the problem and reported it to the Australian Securities & Investments Commission and has agreed to appoint an independent expert to review the process of remediation.

ASIC commissioner Peter Kell said “One of ASIC’s roles is to ensure financial consumers can be confident in the conduct of the financial institutions they deal with. Central to this is ensuring financial services and credit are provided efficiently, honestly and fairly.

“Where errors do occur, it is important that they are identified as early as possible and appropriately rectified.”

ASIC has acknowledged the co-operative approach taken by the bank in this matter.

Some customers have already been compensated; the remainder will receive refunds within the next 10 months.