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There are concerns a class action lawsuit against two of our biggest banks will be undermined by a law change going through Parliament.
The government introduced a bill to amend the Credit Contracts and Consumer Finance Act at the end of March.
Among the changes – the redress for customers if banks or creditors fail in their disclosures.
Currently lenders have to refund all fees and interest charged if they were in breach of disclosure laws; what’s proposed would see that left to the courts to decide what is ‘just’ and ‘equitable’ in any breach.
The proposed change comes as over 150,000 customers of ANZ and ASB undertake a class action over breaches made by both banks between 2015 and 2019.
But Scott Russell, the lawyer leading the class action, is concerned about the fairness of the law change, given it will apply retrospectively.
In a statement ANZ said it undercharged customers an average of $2 per month in 2015 and wrote off the amount it was owed.
The bank said the change proposed in the Bill was not about taking away rights or protections for consumers as claimed by Mr Russell.
The Banking Association is due to make a submission to the select committee on Thursday and its Chief Executive Roger Beaumont has indicated he will appear on Nine to Noon after that.
In a statement he said: “We believe the change proposed in the amendment bill is fair as it simply tidies up the existing legislation to ensure that all breaches from 2015 to 2019 are treated the same as those currently.”
