The corporate regulator has alleged that errors in ANZ Bank’s systems resulted in more than 165,000 credit card accounts being charged incorrectly for fees or interest, as it initiated legal action against the bank for fraudulent conduct.
The Australian Securities and Investments Commission (ASIC) said on Monday it was taking action from the Federal Court against ANZ, alleging that the bank had overstated the funds available in credit card accounts. He said customers relied on this incorrect information when making withdrawals and then the bank charged them fees and interest incorrectly.
ASIC said ANZ Bank had overstated the funds and balances available on credit cards over a “long period”. Credit: Paul Jeffers
ASIC also claims that the problem has not yet been resolved by the banking giant, although ANZ paid more than $ 10 million in compensation for this problem to affected customers before 2018.
ANZ acknowledged the claim on Monday and said it was considering the issues raised by ASIC.
The vigilante’s lawsuit alleges that between 2016 and September last year, the bank made false or misleading statements about customers’ “current balance” or “available funds” in situations where a customer had recently deposited money. instead of credit card.
ASIC said it appeared to customers that their newly deposited funds were immediately available for withdrawal without incurring any commission or interest, although the funds would not be credited and would be credited to the account until the next business day.
As a result, ASIC said that between 2016 and 2018, ANZ customers were charged 165,750 ANZ cash advance fees and interest on withdrawing or transferring money from their credit card between 2016 and 2018, depending on an incorrect account balance.
ASIC Vice President Sarah Court said that on average, affected customers were charged $ 47 in cash and interest advance fees, although there were cases of people charging thousands of dollars in commissions.
“We are concerned that, over a long period of time, ANZ has overstated the funds and balances available in credit card accounts and yet charged fees and interest to customers who relied on this information when making withdrawals,” he said. the court.