Expensive times for ANZ: customers win class action for $57 million in fees
The Federal court has ruled in favour of ANZ customers in a class action against the bank to recoup $57 million in fees. It has been a difficult few weeks for ANZ adding this penalty to the $70 million dollars in home loan errors they will be looking to reverse over the next six weeks. Taking the monthly bill up to a whopping $127 million.
According to the ABE the federal courts handed a partial victor to ANZ customers who joined in a class action to recoup $57 million in fees with the court ruling that the late payment fees the banks charge consumers were extravagant, exorbitant and unconscionable.
However Justice Michele Gordon said that other fees the banks charged, including honour and dishonour fees and over-limit fees on credit cards, were reasonable,
The action, which began in September 2010, was the first of a series of bank-fee class actions against a total of eight banks.
The lawyers claimed the bank charged exorbitant fees of $20-$45 for services that cost them only a few cents or a few dollars to administer. ANZ has not commended on the case other than to say it would vigorously defend itself. According to Mozo data the fees have since been lowered to $20 across personal loans and credit cards.
Proceedings are currently also issues against Citibank, Commonwealth Bank, National Australia Banks, Westpac, St George, Bank SA and BankWest.