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- ANZ (ANZ) cops a $15 million fine for “misleading customers” over available funds
- The court found ANZ failed to clear deposits into the credit card accounts, resulting in an inaccurate representation of “Available Funds”
- ANZ is working with ASIC and apologised for the errors
- The banking institution has already paid remediation payments totalling more than $8.3 million to 186,000 accounts affected
- ANZ shares last traded at $25.06
Australia and New Zealand Banking Group (ANZ) has received a $15 million fine for “misleading customers” as to the actual funds available in certain credit card accounts.
The violation occurred between 2016 and 2018, sparking questions about how a major bank could overlook such a significant issue for an extended period.
The court determined that ANZ had failed to clear deposits into the credit card accounts, resulting in an inaccurate representation of “Available Funds,” which incorrectly appeared more substantial than the actual amount available for withdrawal.
Customers who relied on these inaccuracies to secure cash advances found themselves burdened with fees and interest.
ASIC Deputy Chair Sarah Court said customers were entitled to clear and accurate information about their personal accounts.
“These are errors that we expect a bank to be aware of and fix in a timely manner. It should not have taken ANZ several years to address this issue,” she said.
“ASIC will continue to take action against banks who fail in their duty to act efficiently, honestly and fairly in dealings with customers.”
In addition to the financial penalty, ANZ aims to establish a remediation program to reimburse affected customers who incurred cash advance fees between November 2018 and September 2021.
ANZ has already provided remediation payments totalling more than $8.3 million to around 186,000 accounts that were charged cash advance fees and interest from May 2016 to November 2018.
Today in a press on the ASX, the banking institution apologised for the untimely errors, stating it would fully cooperate with ASIC during its review process.
ANZ shares last traded at $25.06.
