High Court of New Zealand finds against ANZ as class action threatens $102 million in penalties
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The news: The High Court of New Zealand has found against ANZ as part of five-year class action proceedings, opening the door to up to $102 million in penalties.
In a statement to the ASX on Tuesday, ANZ acknowledged the summary judgement made against its New Zealand arm this week, finding it had breached a section of the country’s Credit Contracts and Consumer Finance Act 2003.
The finding relates to a long-running action against the bank involving 17,000 borrowers who had accused the bank, New Zealand’s biggest, of incorrect loan disclosures on mortgages, private loans and credit cards between 2015 and 2019.
They are seeking the repayment of interest and fees over the period.
ANZ said it is currently reviewing how the finding might apply to the whole class action, estimating the maximum penalty it may owe borrowers to be NZD125 million ($102 million).
The bank said it was considering next steps, including the possibility it may appeal the decision.
The context: ANZ has been fighting the case since the class action proceedings first emerged in September 2021.
Unlike its Commonwealth Bank-owned rival ABS Bank, which settled the class action last year for NZD135 million, ANZ had decided to fight it.
The source: ASX
