Borrow
ANZ sued for allegedly misleading customers
The corporate regulator has commenced civil proceedings in Federal Court.
ANZ sued for allegedly misleading customers
On Monday, 30 May, ASIC confirmed it is suing ANZ for overstating its account balances and charging fees.
In a statement, the corporate regulator alleged that between May 2016 and November 2018, around 165,750 ANZ customers were charged cash advance fees and interest for withdrawing or transferring money from their credit card accounts based on an incorrect account balance.
ASIC claims that the issue is still yet to be “adequately fixed” and that customers are still being affected.
“We are concerned that, over a long period of time, ANZ overstated the available funds and balances on credit card accounts, and nonetheless charged fees and interest to customers who relied on this information when making withdrawals,” ASIC deputy chair Sarah Court said.
“In some cases, single customers were charged thousands of dollars in fees while the average cash advance fees and interest charged per affected account was $47.
“This alleged misconduct is the result of system errors within ANZ and a lack of effort to comprehensively fix these issues. We say that ANZ has been aware of the unlawful charging since at least 2018 and the problem is still occurring today.”
ASIC further alleges that since 24 September last year, ANZ engaged in “misleading” conduct where the amount of a customer’s ‘balance’ or ‘funds’ was in credit, the balance would be available to the customer for withdrawal without incurring fees or interest.
ASIC is seeking declarations and pecuniary penalties and orders from the Court that customers who have been charged since 2018 be remediated.
In its own statement, ANZ said it is "considering the matters" brought forward by ASIC.
"ANZ will not be providing further comment given the matter is now before the Court," the statement read.
A hearing date is yet to be scheduled.
RELATED ARTICLES
Banking
The future of digital banking in Australia: Trends and implications for investors
As technology continues to reshape our lives, its influence on the financial sector is particularly transformative. One sector at the epicentre of this change is banking. Read more
Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure ...Read more
Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. Read more
Banking
Modernisation of direct debit system suffers setback
According to the Reserve Bank (RBA), several major banks will not be able to meet the current timeline for the launch of the PayTo service. Read more
Banking
Australians' trust in digital providers has decreased in last five years
Australians have little trust in organisations keeping their information secure, but the financial services industry still sits atop the list. Read more
Banking
Commonwealth Bank chairman to retire in August
The Commonwealth Bank (CBA) board has announced a successor. Read more
Banking
Westpac responds to $113m penalty
The big four bank has responded to the penalty handed down last week. Read more
Banking
Westpac ordered to pay $113m for ‘widespread compliance failures’
Westpac has been ordered to pay penalties in the amount of $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management ...Read more
Banking
The future of digital banking in Australia: Trends and implications for investors
As technology continues to reshape our lives, its influence on the financial sector is particularly transformative. One sector at the epicentre of this change is banking. Read more
Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure ...Read more
Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. Read more
Banking
Modernisation of direct debit system suffers setback
According to the Reserve Bank (RBA), several major banks will not be able to meet the current timeline for the launch of the PayTo service. Read more
Banking
Australians' trust in digital providers has decreased in last five years
Australians have little trust in organisations keeping their information secure, but the financial services industry still sits atop the list. Read more
Banking
Commonwealth Bank chairman to retire in August
The Commonwealth Bank (CBA) board has announced a successor. Read more
Banking
Westpac responds to $113m penalty
The big four bank has responded to the penalty handed down last week. Read more
Banking
Westpac ordered to pay $113m for ‘widespread compliance failures’
Westpac has been ordered to pay penalties in the amount of $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management ...Read more
