ASB’s ERA Fees Confirmed By Commerce Commission

Thursday, 30 April 2009, 5:31 pm
Press Release: ASB Bank

Media release

30 April 2009

ASB’s ERA Fees Confirmed By Commerce Commission

The Commerce Commission has completed the first phase of its investigation into the fixed rate loan break fees charged by New Zealand banks and has confirmed that ASB’s calculation based on the CCCFA methodology is reasonable and that it will not be continuing its investigation into ASB.

ASB’s CEO, Charles Pink said “As we expected, the Commerce Commission has confirmed that ASB’s ERA calculation is reasonable, as it uses the “safe harbour” formula set out in the Credit Contracts and Consumer Finance Regulations, which is based on changes in retail interest rates.”

“Our intention has always been to follow the appropriate procedures set down in the Regulations to calculate and recover reasonable costs from customers choosing to change their fixed loan arrangements. The Commerce Commission’s decision announced today will give ASB customers comfort that our early repayment adjustments are fair.”

ENDS

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