Refund claims spur class action against ANZ and ASB bank

• Published date: 30 September 2021
• Author: Tamsyn Parker
• Publication title: New Zealand Herald, The (Auckland, New Zealand)

The case is being taken by former Commerce Commission lawyer Scott Russell and barristers Davey Salmon, QC, and Ali van Ammers, and is being jointly funded by Australian litigation funder CASL and New Zealand litigation funder LPF Group.

The claim centres around two Commerce Commission settlements with the banks in which both acknowledged a failure to provide accurate information to personal and home loan customers who varied the terms of their loans during a particular period.

In May this year ASB agreed to pay a settlement of $8.1 million to 73,000 customers after it was unable to confirm it had sent written disclosure information to those who made loan variations between June 6, 2015, and June 18, 2019.

In March last year ANZ agreed to pay $29.4m to around 100,000 customers after it confirmed it had misstated the amount of interest on loans from May 30, 2015, until May 29, 2016, as a result of a coding error within a loan calculator used by bank staff.

The lawyers allege that while the banks have made certain remediation payments to affected customers, that remediation is only a fraction of what customers are entitled to under the Credit Contracts and Consumer Finance Act 2003.

Russell said the law was very clear.

“If a bank fails to comply with its disclosure obligations, it is not legally entitled to charge interest or fees on the affected loan until the failure is remedied.

“To the extent a bank receives interest or fees it is not entitled to, it must refund or credit those amounts ... as soon as practicable.”

Russell said in this case, the banks had continued to charge interest and fees despite not being entitled to do so. “The banks’ failures to refund their customers constitute serious breaches of [CCCFA provisions].”

ASB said it was aware of the action.

“As this matter is now before the court, we won’t be making any further comment,” a spokesperson said.

The Herald had not had a response from ANZ but time of publication.

The lawyers are attempting to take an opt-out class action which means all those involved will be part of the case unless they opt out of it.

CASL managing director Stuart Price said the case was one of the most important class actions it had funded.

“It goes to...