Australia Gets Tough On Bank Misconduct, While New Zealand Considers Weakening Consumer Protections

ANZ has admitted to widespread misconduct across its products and services, impacting nearly 65,000 Australian customers, and agreed to pay AU$240 million in penalties following action by the Australian Securities and Investments Commission (ASIC).

Scott Russell, lawyer leading the Banking Class Action, said: “Banks have a clear duty to protect their customers. Australia’s response to ANZ’s misconduct shows what real accountability looks like. The $240 million penalty is a meaningful deterrent and a clear sign that breaches of the law will not be tolerated.

“However, while Australia is moving firmly in the direction of stronger consumer protection and enforcement, New Zealand is considering weakening them.

“The Government is considering retrospectively amending the Credit Contracts and Consumer Finance Bill to cut across active legal proceedings. If passed, this amendment would allow banks to apply to reduce or extinguish refunds that we believe are owed to customers.

“Instead of being accountable in New Zealand, ANZ is lobbying for a retrospective law change, undermining the rights of tens of thousands of New Zealanders.

“Laws that protect consumers are essential for keeping large financial institutions in check and so I call on the New Zealand Government to reject the retrospective amendment and instead follow Australia’s lead in holding banks to account,” says Russell.

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