A multi-million dollar claim has been launched by Kiwi customers against two major Australian banks.
ANZ and ASB. Source: 1 NEWS
The landmark case was filed against ASB and ANZ in the late afternoon, claiming banks failed to reimburse more than 150,000 customers for interest and fees they were not allowed to charge .
Bank class action attorney Scott Russell said the case was brought under the Credit Deeds and Consumer Finance Act, alleging that the banks had violated their disclosure obligations.
He told 1News the case was about “accountability and fairness.”
“The laws require that when banks issue a home loan or consumer loan, they must disclose in a timely and accurate manner – things such as the interest rate, payment terms, the amount of payments – and banks just don’t do that.
âThe banks have broken consumer protection laws, therefore the law makes it clear that they owe their customers a refund, so we are asking the banks to do the right thing. “
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Lawyer Scott Russell says banks have failed to reimburse more than 150,000 customers. Source: 1 NEWS
Some clients may have paid interest and charges for which they were not responsible for periods of up to five years.
Aucklander Antony Simons says he got involved in the case despite it being “scary” because he felt what the banks would have done was “just plain wrong”.
“They destroyed my faith in who they were in a bank. I no longer trust these organizations,” he told 1News.
The case is funded by Australian backer CASL and New Zealand backer LPF Group.
Customers may qualify to participate in the bank class action suit if they had a home or personal loan with ANZ during the period May 30, 2015 to May 28, 2016 or ASB during the period June 6, 2015 to June 18, 2019.
Those who think they might be affected are encouraged to register as plaintiffs, but Russell says he will ask the court to apply the case to all of the 150,000 customer base.
Comments are sought from ASB and ANZ.