(Reuters) – Two of Australia’s “big four” banks face multi-million dollar New Zealand claim for failing to reimburse more than 150,000 customers for interest and fees charged as a result of an alleged violation of disclosure of changes to loan agreements.
The class action https://www.bankingclassaction.com said the Kiwi units of Commonwealth Bank of Australia and Australia and New Zealand Banking Group did not clearly notify clients of a change in certain terms of home and personal loans and claimed that during the period lenders cannot charge a loan.
“The failure of banks to reimburse their customers is a serious violation of the provisions of the Credit Agreements and Consumer Finance Act 2003 (CCCFA),” said attorney Scott Russell of Russell Legal, the firm of lawyers who filed the case.
Australian banks and financial institutions have faced several lawsuits and have had to settle claims worth millions since a Royal Commission investigation in 2018 revealed widespread mismanagement in the industry.
ANZ said it would defend the resolution because it was a historical problem with calculating loan payments, which was reported to the Trade Commission in 2017 and subsequently resolved.
“ANZ believes that we have remedied fairly to our customers and that the matter has already been the subject of regulatory oversight and resolution,” the spokesperson said.
The ABC did not respond to a request for comment.
ANZ customers who took out a loan between May 30, 2015 and May 28, 2016 may be eligible https://bit.ly/3CXg4t8 to participate in the claim, while ASB bank customers belonging to the CBA who borrowed between June 6, 2015 and June 18, 2019 can also be applicants.
The case is funded by Australian donor CASL and New Zealand group LPF.
(Reporting by Shashwat Awasthi and Byron Kaye in Sydney; editing by Arun Koyyur)
Copyright 2021 Thomson Reuters.