ANZ faces class action for “unfair” interest charged from credit card customers -Breaking
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© Reuters. FILE PHOTO – A man walks by a branch Australia and New Zealand Banking Group Ltd. in Sydney on October 29, 2013. REUTERS/David Gray/File Photo(Reuters] – The Australia and New Zealand Banking Group have been sued by a lawfirm for charging interest on certain purchases of credit card holders. However, these charges were repaid within a period of nearly a decade.
Phi Finney McDonald’s law firm filed a class action suit against Australia’s No. 4 Lender for charging interest on purchase that were not interest-free between July 2010 to January 2019.
According to the firm, “The terms in ANZ’s contract make it hard for a consumer to comprehend that retrospective interest would be charged even on payments made on time.”
In January 2019, Australia banned retrospective interest charges
Although the lawsuit alleged that the bank had engaged in “unfair contractual terms” and “unconscionable conduct”, it did not detail the damage it sought against ANZ at the federal court.
ANZ announced in a statement, that they would examine the claims of its contract violating the Australian Securities and Investments Commission Act.
This lawsuit is just the latest of a series of legal actions that Australia’s leading banks have to face. These include breaching consumer credit laws and charging dead customers financial advice fees.
The scrutiny of Australian financial institutions and lenders has increased dramatically since the 2018 Royal Commission investigation found many flaws in this sector. This forced regulators and companies to quickly take immediate action.
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