ANZ Group of Australia Settles Credit Cards Class Action for $37.4 Million
On Monday, Australia’s ANZ Group announced its agreement to settle a class action lawsuit concerning interest charged on personal credit cards for a total of A$57.5 million ($37.44 million). The settlement, as stated by ANZ in a released statement, is made without admission of liability and is still contingent upon court approval.
The class action was initiated against the lender by the law firm Phi Finney McDonald back in 2021. The lawsuit alleged instances of “unfair contract terms and unconscionable conduct” by the bank during the period between July 2010 and January 2019. Specifically, it pertained to the charging of interest on credit card purchases that were purportedly intended to be interest-free.
The settlement marks a resolution to the legal dispute between ANZ Group and the plaintiffs, representing a significant step towards addressing concerns regarding the bank’s practices regarding credit card interest charges. However, it’s important to note that ANZ Group has not admitted to any wrongdoing as part of the settlement.
The class action highlighted alleged discrepancies in ANZ’s handling of credit card transactions, particularly during the specified timeframe. The accusations centered on the imposition of interest charges on purchases that were expected to be exempt from such fees, potentially resulting in financial losses for affected customers.
ANZ’s decision to settle the class action underscores its commitment to resolving legal matters efficiently while avoiding protracted litigation. The agreement to settle, though reached without an acknowledgment of fault, reflects ANZ’s recognition of the importance of addressing customer concerns and maintaining trust within the community.
Pending court approval, the settlement will bring closure to the class action, providing affected individuals with compensation for purportedly unfair practices related to credit card interest charges. It also serves as a reminder to financial institutions of the need to ensure transparency and fairness in their dealings with customers, particularly concerning fee structures and interest calculations.
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