In a statement issued on Wednesday, ANZ acknowledged that class action proceedings have been filed by Phi Finney McDonald in the Federal Court of Australia against the ANZ Group.
According to ANZ, the class action is said to cover certain credit card holders in the period from 1 July 2010 to 1 January 2019.
“The class action is understood to allege that ANZ’s credit card contracts were unfair, and contravened the Australian Securities and Investments Commission Act.
“ANZ will review the claim and will provide any update as required,” the big four said.
In a statement provided to InvestorDaily, Phi Finney McDonald confirmed the class action was lodged on 29 November on behalf of Daniel Tour and other group members alleging unfair contract terms and unconscionable conduct by ANZ in relation to the charging of since outlawed retrospective interest on “interest-free” consumer credit cards from 1 July 2010 to 1 January 2019.
"The alleged misconduct by ANZ harmed everyday consumers by charging interest on purchase that they repaid in a timely manner and retroactively charging them interest on what had previously been interest-free purchases," the law firm said.
According to the allegations, the manner in which the ANZ charged interest made it impossible for the typical credit card holder to understand the way interest would be calculated and how much interest would be charged.
In an example provided by the firm, ANZ is believed to have charged a consumer who paid off $90 of a $100 credit card bill interest on all $100, with the consumer said to have received no interest-free period even on the $90 of purchases that they paid on time.
Charging retrospective interest on credit cards with an interest-free period has been outlawed by Parliament since 1 January 2019 through amendment of the National Consumer Credit Protection Act 2019 (Cth)(NCCP) (New Scheme) by the Treasury Laws Amendment (Banking Measures No. 1) Bill 2018 (TLA Amendment).
Phi Finney McDonald confirmed that ANZ credit card holders do not need to take any active steps in order to participate in the class action.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
