Bank fees class action fingers Kiwibank as next target

Wednesday 13th November 2013 1 Comment

A class action lawsuit claiming banks charge unfair penalty fees has added Kiwibank to its existing suit against ANZ Bank New Zealand.

The Fair Play on Fees class action says more than 35,000 New Zealanders have signed up to participate since the action was announced in June, including 6,000 Kiwibank customers.

That month lawyers representing the group, led by Auckland-based Andrew Hooker, Australian firm Slater & Gordon and Litigation Lending Services, a litigation funding firm, filed documents in the High Court claiming ANZ overcharged customers millions of dollars for six years. The suit covers an estimated $250 million in fees for overdrafts, late credit card payments and bouncing cheques.

"We now have a sufficient number of Kiwibank customers to take their complaint to court and fight to get their unlawful penalty fees back," the group said in an emailed statement. "We also encourage customers of all the remaining banks who have been affected by penalty fees to sign up to the Fair Play on Fees action."

Kiwibank customers who want to be included must register at the group's website by Nov. 21, the group said. The group named Auckland couple Leanne and Sydney Briggs, who had banked with Kiwibank for six and a half years, as lead plaintiffs, saying they had faced about $1,500 in default fees.

The High Court has set a cut off of Dec. 13 for ANZ and National Bank customers wishing to join the original action filed in June, it said.

BusinessDesk.co.nz

Comments from our readers

On 15 November 2013 at 12:47 pm Roger said:

While I disagree with the divisive publicity in the early 90's from banks that set up a penalty regime, it must be recognised that people who don't meet their commitments to a bank do impose significant costs on that bank. It is only reasonable that the bank recover those costs. Such costs also include the costs of having the systems in place to manage such behaviour and the additional risk created. If the penalties are publicised and the customer has a contractual obligation, the customer should not complain. That said I have at best incomplete knowledge of the penalty charges by the banks I deal with because I have never personally experienced such charges.