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In 2021, a multi-million dollar claim was filed in the Auckland High Court against ANZ and ASB for failing to refund interest and fees to 150,000 customers.
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The appeals court ruled that up to 100,000 customers of the country’s two largest banks can join the class action.
ANZ and ASB bank customers are set to launch one of the largest class action lawsuits in New Zealand history.
Filing a multi-million dollar claim 2021 Auckland High Court Suing ANZ and ASB for failing to refund interest and fees to 150,000 customers.
The Court of Appeal’s decision found that the approach by which affected customers had to opt-in to join the class action created unnecessary barriers for customers and their rights.
Scott Russell, the attorney leading the class action, said it was a major victory and thousands of homeowners would be able to pay back overcharges over nine years.
The ruling means every affected customer will be part of the class action unless they opt out.
“Not only does it remove significant barriers for consumers who may not be aware they have a right to participate, it also means that if we are successful, ANZ and ASB will be liable to every eligible customer who was affected when the bank breached New Zealand consumer law, not just those who chose to join the class action,” Russell said.
“Notably, ANZ and ASB did not inform customers that their consumer protection rights had been breached, or that they were entitled to a refund of interest and fees they had paid. Instead, the banks quietly entered into a deal with the Commerce Commission and hoped that more than 100,000 customers would not find out.”
He urged customers to contact their banks and request copies of loan documents and communications.
The relevant periods are:
- ASB Bank customers: 6 June 2015 to 18 June 2019
- ANZ customers: 6 June 2015 – 28 May 2016 (for loans signed after 6 June 2015)
While ASB Bank declined to comment, ANZ said it had restored customers to the same position they would have been in had the problem not occurred and was defending the case.
ANZ said in a statement that the High Court ruled in 2022 that the class action would be considered an opt-out, meaning customers would be automatically included, and ANZ did not challenge this.
“The Court of Appeal recently dismissed the plaintiffs’ request to expand the ANZ class action and confirmed the High Court’s decision that the bank class action currently before the courts only includes ANZ customers who entered into a loan agreement from 6 June 2015 and received a loan variation letter affected by the calculator issue (i.e. received a letter containing incorrect information between 6 June 2015 and 28 May 2016).
“We have relevant records of customers who may be in this group and we will retain these records. There is no need to contact the bank at this stage. The court will consider in the proceedings how and when to notify customers who are in this group and who may have a claim.”
ANZ said it remained to be determined whether the plaintiff had any claim for compensation.
The bank said it contacted the Commerce Commission as soon as it became aware of the issue and took swift action to correct it.
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