NZ banks face class suit over default fees

Monday, 11 March 2013, 11:27 am
Article: BusinessDesk

NZ banks face class suit over default fees for overdrawn accounts, late payments

March 11 (BusinessDesk) - New Zealand banks face what's expected to be the biggest class suit the country's seen over $1 billion in default fees claimed by lenders over the past six years.

Three of Australasia's biggest law firms will announce the class suit to reclaim the fees, according to a statement. The fees are charged when customers overdraw their accounts, pay credit card bills too late, or bounce a cheque, it said.

A press conference is being held in Auckland at 1pm to make the announcement.

The proceeding comes as Justice Minister Judith Collins works on legislation to enable faster, better and cheaper class suit actions. That policy work was expected to be done last year.

Shares in Australia & New Zealand Banking Group edged up 0.03 percent to $36.21 on the NZX, while Westpac Banking was unchanged at $38.80.

(BusinessDesk)

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