ANZ to be penalised for wrongfully charging periodical payment fees

Thursday 25 July 2019 10:09 CET | News

The Australian Securities and Investments Commission (ASIC) will file civil penalty proceedings against ANZ seeking to fine the bank for wrongfully charging customers fees on 1.3 million occasions.

The corporate regulator’s case will relate to ANZ’s charging its customers ‘periodical payment’ fees prior to February 2016. “Periodical payments”, according to the bank’s terms and conditions, were defined as transactions made to “another person or business”.

But ANZ charged these fees, generally between USD 25 and USD 35, even when customers were transferring money between their own accounts, for example, between a persons transactions and home loan account.

So far the Australian bank says it has provided up to USD 50 million to refund customers for the fees and already paid out USD 28 million. These fees were the subject of a class action, launched by law firm Maurice Blackburn, which settled in December 2018 for USD 1.5 million.

The bank has since changed its terms and conditions to clarify when fees related to periodical payments will be charged.

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Keywords: Australian Securities and Investments Commission, ASIC, ANZ, penalty, bank, Australia
Countries: World