Court Of Appeal Hands Customers Of ANZ & ASB A Huge Victory In Class Action Case

A major win in the legal case against New Zealand’s largest banks - ANZ and ASB, now means over 100,000 customers will automatically be included in a class action which could potentially see thousands of everyday New Zealanders get the full amount of interest and fees they paid over a nine-year period on their home loans refunded.

"This is a major victory which significantly strengthens our case against ANZ and ASB,” said Banking Class Action lawyer, Scott Russell. “The Court of Appeal ruling means that every affected customer will now be part of the class action, unless they choose to opt out, potentially leading to substantial refunds for thousands of New Zealand homeowners.”

The total number of affected customers could potentially be greater than 100,000, making this one of the largest class actions in New Zealand's history.

In its judgment, the Court of Appeal said the opt-in approach advocated, “… has the effect of frustrating access to justice by placing unnecessary hurdles in front of those who are entitled to be members of the representative class.”

“Despite ASB Bank’s attempt to put its own interests ahead of its customers, the court's decision to approve our request for the legal case to be run as opt-out is groundbreaking,” Mr Russell continued. “It not only removes a significant barrier for consumers who might have been unaware they had a right to participate, it means if we are successful, ANZ and ASB will be held liable for every eligible customer that was allegedly impacted when the banks breached New Zealand consumer protection laws, not just those who elected to participate in the class action.

“It’s notable that ANZ and ASB didn’t tell their customers their consumer protection rights had been breached, or that they were entitled to have the interest and fees they’d paid refunded. Instead, the banks quietly did a deal with the Commerce Commission and hoped over 100,000 customers wouldn't figure it out.,” he said.

Mr Russell advises all ANZ and ASB banking customers who believe they may be entitled to a refund of interest and fees on their personal and home loans to secure their bank records.

“Now that the court has approved our request, it is critical customers contact their bank and ask for copies of their loan documentation and communications with their bank,” he said.

The relevant periods are:

• ASB Bank customers: 6 June 2015 – 18 June 2019
• ANZ Bank customers: 6 June 2015 - 28 May 2016 (for loans entered into post 6 June 2015)

ANZ and ASB customers can find more information about the case at bankingclassaction.com.

© Scoop Media