Bank of Queensland (BOQ) has been rapped over the knuckles for charging fees to the estates of dead customers.
The Banking Code Compliance Committee (BCCC) said it had sanctioned BOQ for serious and systemic breaches of the Banking Code of Practice.
The BCCC said BOQ and its subsidiary brands BOQ Specialist and Virgin Money Australia failed to stop or refund fees and interest incorrectly charged to the estates of deceased customers between 2019 and 2023 on more than 2,500 occasions.
BOQ incorrectly charged $158,834 in fees and interest to the estates, potentially adding unnecessary financial and emotional distress to grieving families and representatives.
BCCC Chair Ian Govey said the breaches were serious.
“The decision to name BOQ reflects the severity and systemic nature of the compliance failings,” Govey said in a media release.
“We expect banks to take swift and effective action to address non-compliance and prevent further harm to customers. BOQ’s deficiencies and inadequate response fell below our expectations.”
The BCCC, an independent monitoring body that oversees the adherence of banks to the Code, said the breaches were compounded by BOQ’s delays in identifying and addressing underlying issues.
BOQ had completed remediation for affected estates in phases between 2022 and 2024 and had since improved its internal processes to address the underlying issues.
Govey said it was important that banks ensured their processes worked to support compliance with the Code, which are industry standards established by the Australian Banking Association (ABA) to ensure ethical and responsible banking practices.
Bank of Queensland (ASX: BOQ) shares closed at A$6.73, up one cent (1.51%), on Thursday, capitalising the company at $4.45 billion.