Bank fees class action starts with ANZ

Class action lawyers Maurice Blackburn will today file with the Federal Court the first of a series of class actions on bank fees.

ANZ is the first bank to face mass legal action, which in this case involves three lead applicants and at least 27,199 individuals and businesses holding about 40,000 personal and business accounts. The applicants will argue that bank penalty or 'exception' fees imposed by ANZ, consisting of honour and dishonour fees on bank accounts and over limit and late payment fees on credit cards, are illegal. ATM or monthly account fees will not be contested.

It is estimated that the total value of the ANZ class action to date is in excess of A$50m, with the average claim being around A$1,500 and up to A$35,000 per claimant. The applicants will seek a refund of the “unlawful” fees paid over the last six years, plus interest.A claim has also been made for recovery of exception fees incurred prior to the normal six year limitation period.

Financial Redress, a subsidiary of litigation funder IMF Australia, has already registered the holders of more than 210,000 accounts as group members to class actions against the twelve banks announced in May. Maurice Blackburn Chairman Bernard Murphy said: "Our case against the ANZ is very strong and will allege that charging these exception fees is illegal and that the Bank's conduct was unconscionable or unfair within the meaning of the ASIC, Trade Practices and Fair Trading Acts. We will argue that fees charged were unjust within the meaning of the Consumer Credit Code."

The legal action is being funded on a 'no-win no fee' basis by litigation funder IMF Australia and managed by Financial Redress. Managing director of Financial Redress, James Middleweek described the legal action as a “milestone.” He said he believed it was a compelling case against the banks charging excessive fees, many of which have now been dropped following the publicity. “These unfair, excessive fees were already proving indefensible by the banks, so much so that some banks, including ANZ, were forced to reduce or abolish them from late last year.”

The lawsuit has come after a campaign from consumer advocacy groups. Other banks expected to face class actions are Bank of Queensland, Bank SA, BankWest, Bendigo Bank, CitiBank, Commonwealth Bank, HSBC, National Australia Bank, St George, Suncorp and Westpac.


	Click here to close