ANZ Customers to Receive Compensation

Customers of ANZ Bank win after the High Court ruled in their favor. About 38,000 ANZ Bank customers went to court to seek compensation for fees they paid to ANZ for late payments and overdrafts.

The decision of the High Court means it is overruling a decision made by the Federal Court in December 2011. This essentially strengthened the hand of plaintiffs who are pursuing about $220 million in fees from about eight banks.

According to the plaintiffs, the decision puts them in a good solid standing. The eight banks charge $35 when a customer goes $1 over his account limit and the plaintiffs have been seeking for a justification on this.

According to James Middleweek, this is a great win for the plaintiffs and clears the way for the class action to go back to federal court. Middleweek comes from Financial Redress, litigation funder IMF’s specialist arm.

Some of the banks involved in the class action are Bank West, St. George Bank, and BankSA. The class suit is considered one of the biggest in Australian history.

ANZ said that the High Court’s decision has serious implications on Australian businesses. According to Philip Chronican, the chief of ANZ Bank Australia, the action is still in its initial stage and does not really provide a closure for the participants.

He added that the High Court did not say whether the fees are considered penalties.

Andrew Watson, however, countered and said that this is an important milestone in law. He reiterated that the fees are extravagant and excessive.

Watson is the Maurice Blackburn class actions principal.