Class action does not come cheap. Of the $135.6 million out-of-court settlement LPF Group negotiated for ASB customers claiming breaches of consumer credit disclosure rules, $28.9 million comes out for LPF’s fee plus another $3.5 million for its direct legal costs.
With some 276,000 Bank customers potentially entitled to various levels of compensation, a notional equal split would see each receiving about $375.
In 2021, ASB admitted to breaches of the Credit Contracts and Consumer Finance Act, failing to make full statutory disclosures required for customers following changes to their home and personal loans.
It agreed with the Commerce Commission to pay $8.1 million compensation to affected customers. This agreement specifically left open customer rights to sue ASB.
In June 2021, litigation funders LPF Group Ltd and CASL Management Pty Ltd set the ball rolling with a joint class action seeking compensation for ASB customers and also for ANZ Bank customers with allegations of a similar failure by ANZ to make proper disclosures.
ASB settled out of court in late 2025; this agreement requiring court approval.
ANZ refused to settle. It is going head to head in court against the litigation funders’ claim.
Giving High Court approval to ASB’s $135.6 million settlement, Justice Venning said the agreed settlement was in the interests of affected bank customers given three months’ extensive negotiations between the parties, the cost of going to trial, and present uncertainty as to the outcome.
Independent legal advice supported the out-of-court settlement.
ANZ Bank said all legal costs to date of $4.7 million should be charged to the ASB settlement.
ANZ said only 17,000 ANZ customers were part of the class action claim against it.
By contrast, the ASB class action involved nearly 276,000 customers and covered a wider range of disputed issues, ANZ said.
Justice Venning ruled 65 per cent of legal costs to date are to be charged against the ASB settlement.
Simons v. ASB Bank Ltd – High Court (14.01.26)
26.062