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Australia’s CBA, ANZ sued in New Zealand for missed loan interest refunds By Reuters


© Reuters. FILEPHOTO: This is the logo for Commonwealth Bank, which was pictured in Sydney (Australia) on February 15, 2017. REUTERS/Jason Reed/File Photo


(Reuters) – Two of Australia’s “big four” banks are facing a multi-million dollar claim in New Zealand for not refunding more than 150,000 customers the interest and fee charged following an alleged breach in disclosing changes to loan agreements.

The class-action lawsuit said units of Commonwealth Bank of Australia (OTC:) and Australia and New Zealand Banking Group did not clearly inform customers a change in some terms of home and personal loans and claimed that during the period the lenders cannot charge on a loan.

Scott Russell from Russell Legal, the legal firm which filed the case, stated that the banks’ failure to repay their customers violates the Credit Contracts and Consumer Finance Act 2003.

Since the 2018 Royal Commission report revealed widespread financial sector mismanagement, Australian banks have faced numerous lawsuits.

ANZ claimed it would defend the resolution because of a historic problem with the calculation of loan payments. The matter was first reported to Commerce Commission in 2017. It was later settled.

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According to the spokesperson, “ANZ feels that we have adequately mediated the situation for our customers” and added that the matter was already under regulator oversight.

CBA didn’t respond to my request for comment.

Customers of ANZ who obtained a loan from May 30 2015 to May 28 2016, may be eligible https:// for the claim. ASB Bank customers, which are owned by CBA, who borrowed between June 6 2015 and June 18 2019, can also become plaintiffs.

Funding for the case comes from Australia’s CASL, and New Zealand’s LPF Group.

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