ASIC has advised ANZ that it will commence the proceedings in relation to the charging of fees for periodical payments in certain circumstances prior to February 2016.

ASIC said it will allege that ANZ was not entitled to charge certain periodic payment fees under the bank’s contracts with its customers.

These fees have already been the subject of a class action, which was settled in December 2018 for $1.5 million, pending court approval.

During the 2003-16 period, it’s alleged that the transaction fee for periodical payments varied between $1.70 and $4 for business accounts and was either $4 or free for retail accounts, with non-payment fees for periodical payments varying between $35 and $45 for business accounts and between $6 and $45 for retail accounts.

ASIC alleges that between 26 July 2013 and 23 February 2016, ANZ unlawfully charged fees to customers on at least 1,340,087 occasions.

The Australian Government Solicitor has informed ANZ it will file documents in the Federal Court on 29 July.

In a statement to the ASX, ANZ said is still considering the matter raised by ASIC, but has categorically denied any deliberate wrongdoing. 

It does intend to vigorously defend the allegations.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.