ANZ Faces $7.14 Million Fine over Unlawful Charges to Customers
- The bank already paid redemption charges to some of its affected customers.
The Federal Court of Australia has slapped a hefty AUD10 million (around $7.14 million) penalty to Australia and New Zealand Banking Group Limited (ANZ) on Thursday as the bank was engaged in 'unconscionable conduct' and also breached its obligation with its customers.
Friday’s press release by the Australian Securities and Investments Commission (ASIC) detailed that the bank charged fees to its customers for periodic Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term between August 2003 and September 2015. However, the bank was not entitled to charge any fees for transactions between accounts held under the same customer name.
Knowingly Charging Inappropriate Fees
Despite receiving red flags from external lawyers about such charges in July 2011, the bank continued to charge its the 'same-name' fees to its customers.
The regulator detailed that around 69,000 ANZ customers were affected by the unlawful fees, and the bank pocketed around AUD3.1 million ($2.21 million).
The bank has already paid some of the affected customers with around AUD25 million (~$1.79 million) as remediation payments, but could not pay the rest, which will go towards ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term as unclaimed money or charity.
“The outcome and penalty imposed by the Court is a strong deterrent message and reflects ASIC’s position that ANZ lacked contractual entitlement to charge these particular fees,” ASIC Deputy Chair, Daniel Crennan QC said.
“ASIC acknowledges the cooperative approach taken by ANZ to this litigation, which allowed the matter to be efficiently resolved by the Court. It is in the public interest that parties to regulatory litigation cooperate where possible.”
Last month, an Australian court fined two entities of the National Australia Bank with approximately $41.87 million for making false and misleading representations to superannuation members about various charges and associated service fees.
The Federal Court of Australia has slapped a hefty AUD10 million (around $7.14 million) penalty to Australia and New Zealand Banking Group Limited (ANZ) on Thursday as the bank was engaged in 'unconscionable conduct' and also breached its obligation with its customers.
Friday’s press release by the Australian Securities and Investments Commission (ASIC) detailed that the bank charged fees to its customers for periodic Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term between August 2003 and September 2015. However, the bank was not entitled to charge any fees for transactions between accounts held under the same customer name.
Knowingly Charging Inappropriate Fees
Despite receiving red flags from external lawyers about such charges in July 2011, the bank continued to charge its the 'same-name' fees to its customers.
The regulator detailed that around 69,000 ANZ customers were affected by the unlawful fees, and the bank pocketed around AUD3.1 million ($2.21 million).
The bank has already paid some of the affected customers with around AUD25 million (~$1.79 million) as remediation payments, but could not pay the rest, which will go towards ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term as unclaimed money or charity.
“The outcome and penalty imposed by the Court is a strong deterrent message and reflects ASIC’s position that ANZ lacked contractual entitlement to charge these particular fees,” ASIC Deputy Chair, Daniel Crennan QC said.
“ASIC acknowledges the cooperative approach taken by ANZ to this litigation, which allowed the matter to be efficiently resolved by the Court. It is in the public interest that parties to regulatory litigation cooperate where possible.”
Last month, an Australian court fined two entities of the National Australia Bank with approximately $41.87 million for making false and misleading representations to superannuation members about various charges and associated service fees.