Australian CBA and ANZ sued in New Zealand for missing loan interest payments | Investment News

(Reuters) – Two of Australia’s ‘big four’ banks are facing a multimillion-dollar claim in New Zealand for failing to reimburse more than 150,000 customers for interest and fees charged following a breach alleged disclosure of changes to loan agreements.

The class action said the Kiwi units of Commonwealth Bank of Australia and Australia and New Zealand Banking Group failed to clearly inform customers of a change in certain terms of home loans and personal and claimed that during the period lenders cannot charge for a loan.

“The failure of banks to repay their customers constitute serious breaches of the provisions of the Consumer Credit Agreements and Finance Act 2003 (CCCFA),” said solicitor Scott Russell of Russell Legal, the firm of attorneys who filed the case.

Australian banks and financial institutions have faced multiple lawsuits and had to settle claims worth millions since a Royal Commission investigation in 2018 found widespread mismanagement in the sector.

ANZ said it would defend the resolution because it was a historic problem with the calculation of loan repayments, which was reported to the Commerce Commission in 2017 and subsequently resolved.

“ANZ considers that we have fairly remedied our customers and that the matter has already been subject to regulatory oversight and resolution,” the spokesperson said.

The ABC did not respond to a request for comment.

ANZ customers who took out a loan between May 30, 2015 and May 28, 2016 may be eligible to participate in the claim, while ASB Bank customers, owned by the ‘ABC, who borrowed between June 6, 2015 and June 18, 2019 can also be applicants.

The deal is being funded by Australia-based funder CASL and New Zealand’s LPF Group.

(Reporting by Shashwat Awasthi and Byron Kaye in Sydney; Editing by Arun Koyyur)

Copyright 2021 Thomson Reuters.

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