Keystart issues refunds to customers following charging errors

Keystart has commenced the process of refunding approximately 27,238 current and former customers after identifying administrative errors that resulted in incorrect fees and charges being applied to some home loan accounts. 

The average amount to be refunded is around $70 per affected customer, which includes an interest credit payment.

Keystart have now contacted and issued refunds to all affected current customers. All former affected customers will be contacted in writing by no later than 31 August 2025.

Current customers have received their refund as a credit to their home loan account and former customers will be offered refunds via a nominated bank account.

The discrepancies that led to customers being overcharged were identified during a proactive internal compliance process. Upon confirming the errors, affected accounts were quickly adjusted to prevent further overcharging. 

"On behalf of Keystart, we sincerely apologise to all customers affected by this. We have conducted a thorough investigation to understand what occurred and have put in place stronger controls to ensure it does not happen again," Keystart CEO Mark Tomasz said.

"To prevent future occurrences, we have introduced additional controls, are continuing to carry out regular audits, and have a new process for approving updates and fees passed onto our customers."

Keystart first became aware of the errors in August 2024, which triggered an investigation to determine the scale and root cause of the issues. By November 2024, affected customer loan accounts were corrected to prevent further overcharging. Keystart notified ASIC in December, in line with regulatory obligations. 

"At Keystart, we're not a bank driven by profit margins - we exist to support people into their own homes when the more traditional pathways are out of reach," Mr Tomasz said.

"We accept full responsibility and understand the errors are not acceptable. 

"Keystart plays an important role in making our customers' journey to home ownership as smooth and fair as possible, and we will always act in the best interest of our customers and the Western Australian community." 

Any current or former customers who have questions about this are encouraged to email customercare@keystart.com.au for assistance.