ASB to settle class action for more than $135 million

A group called Banking Class Action brought the case in 2021 against ASB and ANZ relating to home and personal loans between June 2015 and 2019.

Banking Class Action alleged ANZ and ASB breached section 22 of the CCCFA by failing to provide proper disclosure information to customers who made agreed changes to their loans and whether one potential interpretation of the CCCFA legislation was the correct one.

The case is seeking repayment of interest and fees paid by ANZ and ASB customers on their loans, which it alleged they were not liable to pay and the banks were not entitled to receive under the CCCFA because the banks failed to meet their disclosure obligations to their customers. 

The case against the ANZ is continuing and the bank is defending the claim.

ASB’s settlement is subject to approval by the High Court.

Chief executive Vittoria Shortt says the settlement ends four years of legal proceedings and provides certainty for the bank and its customers.

“The agreement we’ve come to is a pragmatic way to settle this matter.”

“We continue to strongly support the CCCFA Amendment Bill before Parliament’s Finance and Expenditure Select Committee, which will bring clarity to this confusing piece of legislation.” 

The court process for the settlement may take several months.

The bank and plaintiffs will seek directions from the court on the process for communicating with class members about the settlement. At this stage class members don’t need to do anything and will receive further information in due course.