Powered by MOMENTUM MEDIA
subscribe to our newsletter

ANZ to pay $5 million to customers

ANZ will refund $5 million to approximately 25,000 customers after failing to apply fee reductions.

ASIC said ANZ will refund basic account holders for incorrect late payment and over limit fees.

“Australia and New Zealand Banking Group (ANZ) is refunding around 25,000 customers approximately $5 million after it failed to properly apply some fee reductions and fee waivers for customers who held an ANZ Access Basic account and who also held an ANZ consumer credit card or ANZ Everyday Visa Debit Card since 2007,” the corporate regulator said in a statement today.

“The fees included over limit and late payment fees on consumer credit cards and overdrawn fees on Everyday Visa Debit cards,” it said.

ASIC said the refunds to affected customers also include an additional amount of interest.

Advertisement
Advertisement

“Some customers’ refunds include a component to cover the overpayment of credit card insurance premiums resulting from the impact of these errors on their account balances.”

The failure arose as a result of breakdowns in the interaction between automated and manual processes, and in particular, the lack of reliability of some manual processes and controls. ANZ has implemented a permanent automated solution with a system-based automated waiver, eliminating the need for manual intervention.

ASIC explained that an Access Basic account is available to customers that meet certain criteria which include holding a Seniors Concession card, Pensioner Concession card, Centrelink Health Care card or a Repatriation Health card.

“ANZ's Access Basic account is specifically designed for low income consumers who are unable to pay high fees,” ASIC deputy chairman Peter Kell said.

“This matter highlights the importance of appropriately managing manual processes to apply fee waivers and discounts, and designing and maintaining robust systems to support such features,” he said.

PROMOTED CONTENT


ANZ has started contacting affected customers to explain the error and the reimbursement, and intends to complete the remediation process by the end of April 2016.

ANZ to pay $5 million to customers
mortgagebusiness

Latest News

A high rate of loan repayments through the pandemic has somewhat slowed the growth of Heritage Bank’s book, despite a surge in approvals. ...

Small and medium-sized enterprises were the most commonly targeted victims of cyber attacks in the last financial year, according to new rep...

An overwhelming majority of Pulse Credit Union members have supported the proposed deal with Teachers Mutual Bank Ltd, with the two companie...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.