Australian regulator sues ANZ over alleged overstatement of credit card balances

A man talks on the phone outside an ANZ Banking Corporation tower in central Sydney, Australia February 20, 2018. REUTERS/Daniel Munoz/File Photo

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May 30 (Reuters) – Australia’s market regulator said on Monday it had brought civil proceedings against the Australian and New Zealand Banking Group (ANZ.AX) for allegedly misleading its customers about their credit card accounts. credit.

Around 165,750 ANZ customers were charged cash advance fees and interest to withdraw or transfer money from their credit card accounts between May 2016 and November 2018, based on incorrect account balances, the regulator said in a statement.

The Australian Securities and Investments Commission (ASIC) said that in some cases fees of several thousand dollars were charged to unique clients.

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“This alleged misconduct is the result of system errors within ANZ and a lack of effort to address these issues comprehensively,” said ASIC Vice President Sarah Court.

ANZ said it was looking into the issues raised by ASIC.

“ASIC’s claims relate to a particular situation, where funds are deposited to place a credit card account on a credit balance, and a cash advance is then made to the account drawing on the credit balance before the deposit be processed,” ANZ said in a statement.

Although the lender has remedied more than A$10 million ($7 million) to customers who were affected up to November 17, 2018, ASIC said it is seeking court orders to remediate customers. who have been wrongfully charged since 2018.

($1 = 1.3968 Australian dollars)

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Reporting by Upasana Singh in Bangalore; Edition by Lincoln Feast.

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