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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news