Customer Remediation for Fee and Interest Overcharging

Data and Analytics at the core of identifying, quantifying, and remediation of customer impacts.

Project Statement

A series of customer events, primarily relating to overcharging of fees and interest, were identified, many of which were highlighted as part of the Royal Commission into Financial Services. These issues created significant regulatory concerns and eroded customer trust, prompting the need for a robust remediation process.

Problem Solution

To address the challenges, we built a comprehensive data store that integrated customer, product, and transaction data to identify patterns and systemic issues. The system was designed to recalculate fees and interest charges and compare them with what had actually been charged. This analysis uncovered overcharging and allowed for the development of cost-effective remediation strategies, taking into account the time value of money. Automated systems were implemented to accurately calculate the correct customer outcomes, ensuring a fair and efficient process for all impacted customers.

Value Delivered

The solution delivered significant benefits:

- Systemic Issue Resolution: The root causes of overcharging were addressed, and a function was created at the client organisation to proactively tackle customer complaints.
- Improved Customer Experience: By automating the remediation process, the solution ensured a more accurate and timely resolution of customer complaints, improving customer satisfaction and trust.
- Positive Impact on NPS: The remediation efforts resulted in a marked improvement in customer Net Promoter Scores (NPS), demonstrating the positive effect on customer loyalty and perception.
- Regulatory Compliance: The solution helped meet the regulatory requirements arising from the Royal Commission, restoring confidence in the organisation’s ability to manage customer complaints.

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