Over 170,000 borrowers sue ANZ and ASB banks for interest errors
“This is about accountability and fairness,” lead counsel for the plaintiff, Scott Russell, told Newshub.
“All we ask is that banks comply with their legal obligations and reimburse their customers for the money they are owed.”
Both banks have previously admitted to breaking responsible lending law by giving customers incorrect information about how much interest they owed on their loans when refinancing. ANZ made mistakes for a year, while ASB made mistakes for a period of four years.
In settlements with the Trade Commission, the two banks agreed to compensate millions of dollars to affected customers, but this was not the full amount of interest paid by customers.
ASB client Anthony Simons has obtained a $ 135 indemnity credit, but may be entitled to an interest refund of $ 22,000 on his mortgage of $ 550,000.
“It has nothing to do with money,” he said. “It’s a matter of trust. I just hope the bank is going to do what it’s doing and do the right thing, and it just hasn’t done it.”
If each customer owed an average of $ 10,000 each, it would cost the banks $ 1.7 billion.
Another ASB client and claimant, Bruno Bickerdale, who did not know how much interest he was claiming, said he was taking action to ensure that the banks did not start again.
“Do better [ASB]. Take care of your customers. ”
ANZ said in a written statement that it would defend the claim, which concerned historical issues.
“Over $ 35 million has been paid to customers. ANZ believes that we have remedied fairly to our customers.”
Newshub has contacted ASB for comment.