Adding to the $64 million already paid out for failing to make full credit contract disclosure to nearly 100,000 customers, ANZ must refund all interest paid over a three year period by a further 17,000 customers with the High Court ruling financial consequences of the failed disclosure for each customer could not simply be dismissed by ANZ as a small rounding error.
Payment due is not finalised. The High Court set out parameters for calculation across the 17,000 customer accounts, requiring return of interest payments made over the period 2015-2018.
ANZ has already compensated nearly 100,000 customers with payments totalling $64.4 million: of this $35 million being a Commerce Commission settlement with ANZ admitting a failure to exercise the due diligence and skill of a responsible lender; $29.4 million being further compensation for what was described as a ‘coding error.’
Corrected disclosure letters were eventually delivered to affected customers.
ANZ’s problems followed use of a third party developer in 2015 to design and implement changes to the Bank’s existing software package generating Credit Contracts and Consumer Finance Act disclosure letters advising customers of loan terms and payment amounts.
The High Court was told the revised package failed to include interest accrued, but not yet charged, for those customers renegotiating existing loans.
This error was picked up only after customer complaints.
ANZ did not finally remediate disclosure for three years.
Bank customer Andrew Beavan was selected as lead plaintiff in a class action against ANZ.
In 2015, he had renegotiated his existing Bank home loan; agreeing a fixed interest rate on that part of his home loan previously floating.
The Bank admitted its disclosure error, failing to properly calculate ongoing fortnightly interest payments.
This disclosure failure was of no economic significance, the Bank claimed. Deviation from the correct disclosure amounted to no more than 0.4 per cent and 0.19 per cent for interest payments incorrectly calculated on Mr Beaven’s renegotiated loan.
Justice Venning ruled strict compliance with the Act was necessary.
ANZ was ordered to refund $32,700 to Mr Beaven: all interest paid for the period ANZ failed to make correct disclosure.
Class action litigators will use this formula to finalise a global settlement with ANZ on behalf of the remaining 17,000 customers signed up to its class action.
Beaven v. ANZ Bank – High Court (4.05.26)
26.149