ANZ is ordered to pay up $10million in fines for wrongly charging customers $3million in fees… so did you get stung?
- ANZ wrongly charged non-payment and transaction fees for periodic payments
- The Federal Court found the charges were between between 2003 and 2015
- In 2011 ANZ’s lawyers advised them they should not have been charging the fees
- ANZ continued the unethical practice until finally stopping in September of 2015
ANZ has been slugged with a $10million fine after wrongly charging 69,000 of their customers more than $3million in fees.
The Federal Court on Friday ruled ANZ had incorrectly charged non-payment and transaction fees for periodic payments between 2003 and 2015.
ANZ was not permitted to charge these fees for payments made between accounts held in the same name of customers.
ANZ Bank will have to pay a $10 million fine after wrongly charging 69,000 of their customers more than $3 million in fees between 2003 and 2015 (stock image)
The massive fine follows an investigation by the Australian Investments and Securities Commission (ASIC) who found the conduct of ANZ ‘unconscionable’
The court found ANZ’s lawyers in 2011 advised it ‘may not have been allowed’ to charge the non-payment and transaction fees to customers – but the bank continued to do so until September of 2015.
The court also heard ANZ engaged in ‘unconscionable conduct’ by not compensating affected customers until a later date.
ANZ has since paid compensation of $2.5million to its customers.
The Australian Investments and Securities Commission (ASIC), who filed the legal action against ANZ, said the massive penalty sent a clear message that the conduct was deceitful and unacceptable.
The bank will also be forced pay ASIC’s legal fees, estimated to be around the $1million mark.
ANZ is one of Australia’s official ‘big four banks’, alongside National Australia Bank (NAB), Commonwealth Bank and Westpac.