Australian borrowers have been overcharged millions of dollars in interest payments because of major failings in how banks manage mortgage offset accounts, it has been discovered. “That should concern every bank offering offset accounts.” “When offset accounts don’t operate correctly, the harm can be hidden,” Court said. Credit: 7NEWSMortgage offset failuresASIC looked into how banks set up, linked, managed and responded to failures with mortgage offset accounts, but did not assess how banks calculated interest. Banks struggled to readily identify customer offset account requests;Banks’ detection of offset account failures was inconsistent;Banks failed to compensate customers and were slow to fix issues;Customers lacked visibility of information on offset accounts.