Australia’s CBA, ANZ sued in New Zealand for missed loan interest refunds

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September 29 (Businesshala) – Two of Australia’s “big four” banks are facing multimillion-dollar claims in New Zealand for not refunding interest and fees to more than 150,000 customers following alleged breaches in disclosing changes to loan agreements. Huh.

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class-action court case said that the Commonwealth Bank of Australia (CBA.AX) and the Kiwi units of Australia and New Zealand Banking Group (ANZ.AX) did not explicitly inform customers of changes in certain terms of home and personal loans and claimed that this Lenders cannot charge fees during the period. on a loan.

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“The failure of banks to refund their customers is a serious violation of the provisions of the Credit Contracts and Consumer Finance Act 2003 (CCCFA),” said solicitor Scott Russell of Russell Legal, the law firm that filed the suit.

Australian banks and financial institutions have been slapped with numerous lawsuits and claims worth millions since a Royal Commission investigation found widespread mismanagement in the sector in 2018.

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ANZ said it would defend the resolution because it was a landmark issue of how loan payments are calculated, which was reported to the Commerce Commission in 2017 and later settled.

“ANZ believes we have substantially recovered our customers and the matter is already subject to regulatory oversight and resolution,” the spokesperson said.

CBA did not respond to a request for comment.

ANZ customers who may have taken a loan between May 30, 2015 and May 28, 2016 Suitable To participate in the claim, while customers of CBA-owned ASB Bank who had borrowed between June 6, 2015 and June 18, 2019, may also be plaintiffs.

The case is funded by Australia-based litigation fund CASL and New Zealand’s LPF Group.

Reporting by Shashwat Awasthi and Byron Kaye in Sydney; Editing by Arun Koyur

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