Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Why is Charging Kiwis More Standard Business Practice?

15 March 2013

“Fair Play on Fees” Invites ASB to Tell Kiwis Why It is Standard Business Practice to Charge Kiwis More

The lawyer pursuing Kiwi banks on behalf of customers overcharged hundreds of millions in unfair bank fees has called on one of the country’s biggest financial institutions to explain why the head of its Australian parent company justified the overcharging as “standard business practice”.

Ian Narev, who is head of the Commonwealth Bank of Australia – owner of ASB – told a business lunch in Auckland yesterday that it was ”standard business practice” to charge higher default fees in New Zealand than in Australia.

The comment was made in response to Fair Play on Fees comparison of the fees charged by ASB in NZ and CBA in Australia. In New Zealand, ASB customers are charged more than three times the amount charged in Australia when an automatic payment (AP), bill payment or direct debit is declined.

An ASB customer in New Zealand is charged a fee of $20 but the same customer of the CBA in Australia is charged $NZD6.25 ($AUD5).

Fair Play on Fees Lawyer Andrew Hooker says Kiwis were entitled to ask ASB how such disparity can be justified as a “standard business practice”.

“Customers are entitled to know why there is such a vast difference. Surely the costs of the same computer transaction in NZ can’t be three times higher than what it is in Australia. Do computers cost that much more here than in Australia?"

”We understand the bank’s point that there is no reason for fees and charges to be identical between countries but the differences just don’t add up. It is time for ASB to give its customers more information about the costs that go into a making up a default fee”.

Mr Hooker said “Perhaps Mr Narev doesn’t understand what the case is about. If a can of Coke in Australia costs slightly more than in NZ, big deal, if their monthly account keeping fees are slightly higher or lower, then big deal. The issue with these particular fees is that they need to be set with regard to what it actually costs the bank when a customer has insufficient funds to meet an AP. We say that the costs of this occurring are out of all proportion to the fees that they are charging; that’s what makes it an unlawful penalty. It seems that this principle is better understood by Mr Narev’s CBA team in Australia but less well understood by their colleagues across the Tasman”.

New Zealanders can join the action against unfair bank fees by registering at www.fairplayonfees.co.nz.

ENDS

About Andrew Hooker

Andrew is an Auckland based lawyer specialising in civil litigation. He has more than 20 years’ experience in litigation. His current practice largely involves representing customers against their insurance companies.

About Slater & Gordon

Slater & Gordon is Australia’s largest consumer law firm. For 75 years, Slaters have been standing up for the rights of ordinary working people, not big companies. Slater & Gordon have been pioneers in Australian class actions over the past 25 years. They will be lending their expertise in tough, largescale litigation to this case as legal advisors.

About Litigation Lending Services (NZ)

Litigation Lending Services (NZ) Limited is a litigation funding firm which will provide financial support to the case. Its parent company, Litigation Lending Services Limited, has been operating for over 13 years in both Australia and New Zealand. Having established itself funding general commercial claims, the company has expanded over the past five years and has also funded a number of successful class actions.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news