Citibank’s $350 fee on closed home loan

BANKS love annual home loan package fees. So much so that in Maruschka Loupis’ case, Citibank’s computer system couldn’t stop charging it.

Maruschka Loupis pictured outside Citibank in Sydney who charged her a $350 annual fee/package fee for a home loan she had already paid out. Picture: Toby Zerna

BANKS love annual home loan package fees. So much so in Maruschka Loupis’ case, Citibank’s computer system couldn’t stop charging it.

In December Mrs Loupis paid out her mortgage and credit card. In fact, Citi owed her money on the home loan account. But instead its computers mistakenly charged her so that 1c was left owing on the mortgage, just as the account anniversary approached. A $350 loan fee was imposed.

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“What’s that fee for anyway? Administration?” Mrs Loupis said. “ If so then I wasn’t paying enough!”

Banks make $1200 million a year from mortgage fees.

The charges have been reversed and, in what Citi calls a “goodwill gesture”, her new account — at NAB — has been credited with $8.

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