The bank charged improper overdraft fees and falsely demanded mortgage incentive repayments
It has, however, already refunded customers $4.37 million in improper charges plus additional compensation payments.
ANZ Bank
New Zealand will pay $3.25 million to settle charges it misled customers about
fees and wrongly demanded repayment of mortgage incentives, the
country's Financial Markets Authority (FMA) announced today (Monday).
ANZ Pays $3.25 Million
After Admitting to Customer Overcharges
The bank
admitted to two separate breaches of fair dealing laws in an enforceable
undertaking with regulators. The settlement covers conduct
spanning more than a decade, affecting hundreds of thousands of customers.
ANZ charged
customers improper fees when their accounts went into unarranged overdraft
between December 2012 and May 2023. The bank collected both overdraft fees and
excess interest even when payments were ultimately rejected - a practice
that violated its own terms and conditions.
FMA Head of Enforcement, Margot Gatland
"ANZ's
terms and conditions only allowed either the unarranged overdraft fee to be
charged, or the payment to be dishonored," FMA Head of Enforcement
Margot Gatland said in a statement.
Since fair
dealing laws took effect in April 2014, the improper overdraft charges affected
209,960 ANZ customers. The bank collected $4.37 million in improper fees: $3.49 million in overdraft charges and $879,078 in excess interest.
ANZ has
already paid back affected customers, including $1.02 million in "use of
money" payments that compensate for the time customers went without
their funds. The bank contacted current customers directly and made
"reasonable attempts" to reach former customers who could claim
refunds.
The second
violation involved ANZ's handling of cash contributions it paid customers
who took out new home loans. These incentive payments came with
strings attached - customers had to keep their banking with ANZ for two
to three years or face demands to repay the money.
When
customers moved to discharge their mortgages within the required timeframe, ANZ
assumed they were switching banks and demanded repayment of the cash
contributions. But the bank later discovered it couldn't verify that 1,019
customers had actually violated their agreements by moving their business
elsewhere.
"By
requesting these customers to repay the cash contribution on the basis
that they had moved their banking to a competitor ANZ breached" fair
dealing laws, Gatland said. The false representations occurred between
August 2014 and August 2022.
ANZ
refunded $2.43 million in cash contributions to those 1,019 customers,
plus $582,030 in use of money payments.
The bank
has since changed how it handles mortgage discharges, requiring customers
to explain their reasons and clarifying when repayment of incentives is
actually required.
FinanceMagnates.com also recently reported on overcharging at Deutsche Bank, for which Hong Kong's securities regulator fined the banking giant $24 million after uncovering $39 million in excessive fees over an eight-year period.
Self-Reported Violations
Lead to Settlement
ANZ
discovered and reported both issues to regulators itself, earning
acknowledgment from the FMA for its cooperation during the investigation.
The $3.25 million payment breaks down as $2.08 million for the overdraft fee
violations and $1.17 million for the mortgage incentive breaches.
"Banks
are required to ensure representations they make to customers about
overdraft fees and cash contributions are not misleading and do not
cause harm to customers," Gatland said. "ANZ made false
representations in both instances."
The
settlement includes a commitment from ANZ to develop better policies and
systems to prevent similar problems. The bank must also identify any
additional customers harmed by the mortgage incentive issue and provide
refunds.
"It is
essential that customers can continue to have confidence in their bank,"
Gatland said. "We will continue to respond to misleading practices to help
ensure New Zealand has fair, efficient and transparent financial
markets."
ANZ Bank
New Zealand will pay $3.25 million to settle charges it misled customers about
fees and wrongly demanded repayment of mortgage incentives, the
country's Financial Markets Authority (FMA) announced today (Monday).
ANZ Pays $3.25 Million
After Admitting to Customer Overcharges
The bank
admitted to two separate breaches of fair dealing laws in an enforceable
undertaking with regulators. The settlement covers conduct
spanning more than a decade, affecting hundreds of thousands of customers.
ANZ charged
customers improper fees when their accounts went into unarranged overdraft
between December 2012 and May 2023. The bank collected both overdraft fees and
excess interest even when payments were ultimately rejected - a practice
that violated its own terms and conditions.
FMA Head of Enforcement, Margot Gatland
"ANZ's
terms and conditions only allowed either the unarranged overdraft fee to be
charged, or the payment to be dishonored," FMA Head of Enforcement
Margot Gatland said in a statement.
Since fair
dealing laws took effect in April 2014, the improper overdraft charges affected
209,960 ANZ customers. The bank collected $4.37 million in improper fees: $3.49 million in overdraft charges and $879,078 in excess interest.
ANZ has
already paid back affected customers, including $1.02 million in "use of
money" payments that compensate for the time customers went without
their funds. The bank contacted current customers directly and made
"reasonable attempts" to reach former customers who could claim
refunds.
The second
violation involved ANZ's handling of cash contributions it paid customers
who took out new home loans. These incentive payments came with
strings attached - customers had to keep their banking with ANZ for two
to three years or face demands to repay the money.
When
customers moved to discharge their mortgages within the required timeframe, ANZ
assumed they were switching banks and demanded repayment of the cash
contributions. But the bank later discovered it couldn't verify that 1,019
customers had actually violated their agreements by moving their business
elsewhere.
"By
requesting these customers to repay the cash contribution on the basis
that they had moved their banking to a competitor ANZ breached" fair
dealing laws, Gatland said. The false representations occurred between
August 2014 and August 2022.
ANZ
refunded $2.43 million in cash contributions to those 1,019 customers,
plus $582,030 in use of money payments.
The bank
has since changed how it handles mortgage discharges, requiring customers
to explain their reasons and clarifying when repayment of incentives is
actually required.
FinanceMagnates.com also recently reported on overcharging at Deutsche Bank, for which Hong Kong's securities regulator fined the banking giant $24 million after uncovering $39 million in excessive fees over an eight-year period.
Self-Reported Violations
Lead to Settlement
ANZ
discovered and reported both issues to regulators itself, earning
acknowledgment from the FMA for its cooperation during the investigation.
The $3.25 million payment breaks down as $2.08 million for the overdraft fee
violations and $1.17 million for the mortgage incentive breaches.
"Banks
are required to ensure representations they make to customers about
overdraft fees and cash contributions are not misleading and do not
cause harm to customers," Gatland said. "ANZ made false
representations in both instances."
The
settlement includes a commitment from ANZ to develop better policies and
systems to prevent similar problems. The bank must also identify any
additional customers harmed by the mortgage incentive issue and provide
refunds.
"It is
essential that customers can continue to have confidence in their bank,"
Gatland said. "We will continue to respond to misleading practices to help
ensure New Zealand has fair, efficient and transparent financial
markets."
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
