ANZ to put up a fight
(22 September 2010 – Australia) ANZ Bank has said it will ‘vigorously’ defend the class action brought by law firm Maurice Blackburn.
The litigation began yesterday with the law firm, on behalf of 27,199 individuals and businesses, seeking A$50 million, plus interest, from ANZ.
The claim is for ‘illegal’ honour and dishonour fees, as well as over-limit and late payment fees charges to the clients 40,000 ANZ accounts.
Overall the litigation is seeking recovery of more than A$250 million from 12 banks over allegedly unlawful penalty fees.
The law firm's chairman, Bernard Murphy, said the case was ‘very strong’, and would allege the fees were illegal and the bank's action in levying them was unfair under the ASIC, Trade Practices and Fair Trading Acts.
He said that the litigation had so far attracted 150,000 claimants, and was being backed by IMF Australia on a ‘no win, no fee basis.
A further ‘significant’ spike was expected in the number of participants in the ANZ claim.
The liability is not capped because people can join the (ANZ) case until it's resolved, Mr Murphy said.
ANZ acknowledged yesterday it had been served with a statement of claim, but indicated it would put up a strong fight.
Phil Chronican, CEO for Australia, said ANZ had recognised the fees were unpopular and had introduced a simplified fee structure last December.
It's a big leap, however, for a fee to go from being unpopular to being unlawful, Mr Chronican said.
ANZ will be defending this claim vigorously and we plan to hold IMF accountable for the impact of its actions, Mr Chronican added.
The claim is for ‘illegal’ honour and dishonour fees, as well as over-limit and late payment fees charges to the clients 40,000 ANZ accounts.
Overall the litigation is seeking recovery of more than A$250 million from 12 banks over allegedly unlawful penalty fees.
The law firm's chairman, Bernard Murphy, said the case was ‘very strong’, and would allege the fees were illegal and the bank's action in levying them was unfair under the ASIC, Trade Practices and Fair Trading Acts.
He said that the litigation had so far attracted 150,000 claimants, and was being backed by IMF Australia on a ‘no win, no fee basis.
A further ‘significant’ spike was expected in the number of participants in the ANZ claim.
The liability is not capped because people can join the (ANZ) case until it's resolved, Mr Murphy said.
ANZ acknowledged yesterday it had been served with a statement of claim, but indicated it would put up a strong fight.
Phil Chronican, CEO for Australia, said ANZ had recognised the fees were unpopular and had introduced a simplified fee structure last December.
It's a big leap, however, for a fee to go from being unpopular to being unlawful, Mr Chronican said.
ANZ will be defending this claim vigorously and we plan to hold IMF accountable for the impact of its actions, Mr Chronican added.
Subscribe