Australia’s two “big four” banks are facing multimillion-dollar claims for not returning interest and fees to more than 150,000 customers after an alleged breach in disclosing changes to loan agreements in New Zealand.
The class-action lawsuit states that the Commonwealth Bank of Australia and the Australia and New Zealand Banking Group’s Kiwi units did not explicitly notify customers of changes in certain terms of home and personal loans, and claimed that the lender during the period Cannot charge loan.
“The failure of banks to refund their customers is a serious breach of the provisions of the Credit Contract 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.
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 took loans between May 30, 2015 and May 28, 2016 may be eligible to participate in the claim, while customers of ASB Bank, owned by CBA, who borrowed between June 6, 2015 and June 18, 2019 , they can also be litigants.
The case is funded by Australia-based litigation fund CASL and New Zealand’s LPF Group.
By Shashwat Awasthi and Byron Kaye
This News Originally From – The Epoch Times