The major banks will refund a total of $21.5 million to eligible credit card customers, a report from the Australian Securities and Investments Commission has revealed.
ANZ will refund $10.2 million to 52,135 Business One credit card accounts after reporting to the Australian Securities and Investments Commission (ASIC) that it failed to disclose, or incorrectly disclosed:
- Applicable interest rates
- The interest-free period
- The annual fee
- When an overseas transaction fee might apply
- The amount payable for overseas transactions with foreign merchants or financial institutions
ANZ has contacted eligible customers who will be receiving a refund, providing current customers with a refund paid directly into their accounts, while former customers will receive a bank cheque.
Meanwhile, Westpac will remediate a total of $11.3 million to around 3,400 credit customers following concerns raised by ASIC over the bank’s credit card limit increase practices.
As part of Westpac’s commitment to improving its lending practices, the bank reviewed its credit card limit increase practices, and it found that limit increases were provided to customers who subsequently experienced financial difficulty.
As a result of these findings, the lender will refund around $3 million for fees and interest and $8.3 million to credit card balances paid.
Further, Westpac engaged with an independent expert to provide assurance over the remediation, and it has made its first two payments totalling $1 million in support of financial counselling and financial literacy.