ANZ says watchdog plans to take it to court for wrongful fee charges

(Reuters) - Australia and New Zealand Banking Group Ltd (ANZ) on Thursday said Australia's corporate regulator plans to begin civil proceedings against the lender for wrongful charging of fees. ANZ, one of Australia's Big Four banks, said it has been informed by the Australian Securities and Investments Commission (ASIC) that the proceedings relate to fees charged for periodical payments in some cases before February 2016.

Reuters July 25, 2019 07:06:50 IST
ANZ says watchdog plans to take it to court for wrongful fee charges

ANZ says watchdog plans to take it to court for wrongful fee charges

(Reuters) - Australia and New Zealand Banking Group Ltd (ANZ) on Thursday said Australia's corporate regulator plans to begin civil proceedings against the lender for wrongful charging of fees.

ANZ, one of Australia's Big Four banks, said it has been informed by the Australian Securities and Investments Commission (ASIC) that the proceedings relate to fees charged for periodical payments in some cases before February 2016.

The fees were the subject of a class action suit settled late last year for A$1.5 million ($1.05 million) and pending court approval, ANZ said. ASIC is seeking penalties for 1.3 million occasions where the fees were applied, the bank said.

The action comes at a time of increased scrutiny of banks following the Royal Commission, a powerful inquiry last year that exposed compliance and governance failures across the financial sector.

The corporate watchdog earlier this month said it could take "significant enforcement action" against some of the country's largest banks, including ANZ, over sales earlier this decade of insurance products that it said harmed customers.

"ANZ categorically denies any deliberate wrongdoing and intends to vigorously defend any such allegation," the bank said in a statement on Thursday, adding it would not provide further comment as the matter will be before the courts.

An ASIC spokesman confirmed the regulator's intent to issue proceedings in the Federal Court against ANZ and said it would comment further once the filing has occurred.

($1 = 1.4333 Australian dollars)

(Reporting by Devika Syamnath in Bengaluru; Additional reporting by Byron Kaye; Editing by Richard Pullin and Christopher Cushing)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
World

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities

Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News & Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News & Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.