Des Houghton: ANZ takeover set to fail with more regional Qld branch closures

ANZ was one of the banks that hurt regional Queensland by shutting branches, so its takeover of Suncorp will inevitably lead to more closures, writes Des Houghton.

I fail to see how reduced competition is good for the consumer, so I fail to see how the takeover of Suncorp bank by ANZ can be justified.

The move also raised conflict-of-interest questions for the ALP.

I have for some time held a low opinion of the ANZ for its corporate failures and its woke, anti-Queensland plans to phase out support for the state’s coal and gas projects at a time when renewables aren’t even close to filling the energy gap. That was virtue-signalling at its worst.

The ANZ might be attempting to take the moral high ground, but we must not forget it was one of the banks that did not come out of the Hayne Royal Commission into misconduct in the banking and financial sector with clean hands.

ANZ faced much scrutiny at the Hayne Royal Commission into misconduct in the banking and financial sector. Picture: NCA NewsWire/David Geraghty

The ANZ ripped off customers with its notorious Breakfree package that offered a range of benefits on eligible ANZ products including home loans, credit cards and transaction accounts in exchange for an annual fee.

That resulted in the corporate regulator taking legal action against ANZ after it failed to pass on financial benefits to more than half a million clients over two decades.

The Australian Securities and Investments Commission (ASIC) instigated civil penalty proceedings in the Federal Court over the misconduct and the ANZ was forced to remediate $200m to affected customers. The legal action marked the watchdog’s final lawsuit from the banking royal commission.

ANZ also agreed to pay a $25m fine after the financial services royal commission revealed the bank had failed to provide benefits, including fee waivers and interest rate discounts, to 580,447 customers using offset transaction accounts under the “Breakfree package”.

At the time, ASIC deputy chair Sarah Court was scathing of the ANZ Bank’s conduct.

“These customers were entitled to receive the benefits they signed up for and in many instances paid for,” she said.

Treasurer Jim Chalmers and Assistant Minister for Competition, Charities and Treasury Andrew Leigh. Picture: Tim Hunter

“This case is yet another example of a widespread system failure by a major bank impacting thousands of customers.”

ANZ has promised to atone for past mistakes but Suncorp customers swallowed by ANZ have every right to feel a little uncomfortable. And ASIC isn’t finished with the ANZ just yet.

In May, news.com.au reported ANZ could be forced to compensate more customers amid allegations it has continued to mislead people on the balance on their credit-card accounts, subsequently saddling them with extra fees.

News reported the financial watchdog was taking action against ANZ in the federal court over concerns that, for a long period, ANZ overstated the available funds and balances on credit card accounts.

The watchdog also claims ANZ charged fees and interest to customers who relied on this information when making withdrawals.

ASIC says that between May 2016 and November 2018, about 165,750 ANZ customers were charged cash-advance fees and interest for withdrawing or transferring money from their credit card accounts based on an incorrect account balance, including on the ANZ website, ANZ App and at ATMs. ASIC also alleges ANZ has not adequately fixed the problem and that customers continue to be affected.

While ANZ has remediated more than $10m to customers who were affected up until November 2018, the watchdog says the problem has continued, news.com.au reported.

“We say that ANZ has been aware of the unlawful charging since at least 2018 and the problem is still occurring today,” Ms Court said.

ASIC deputy chair Sarah Court.

ASIC is seeking orders from the Court that customers who have been wrongly charged since 2018 also be remediated.

Despite ANZ’s unsavoury past, I have no doubt Treasurer Jim Chalmers will approve the takeover.

Who would want to make an enemy of a powerful big four bank?

If Chalmers does approve the takeover, it will place him at odds with his colleague Andrew Leigh, the Harvard-educated lawyer and academic and the Assistant Minister for Competition, Charities and Treasury.

Leigh has repeatedly spoken out about the dangers of “cosy monopolists” dominating the market.

The takeover may also present conflict-of-interest difficulties for the Queensland ALP, which reportedly owns a multimillion-dollar stake in Suncorp.

Remember too, that ANZ was one of the banks that hurt regional and remote Queensland by shutting country branches. Some towns have never recovered.

The takeover will inevitably lead to more branch closures in the future, despite assurances of short-term safeguards.

Bigger isn’t always better.

It’s time for the media and the Opposition to start asking Chalmers, Premier Annastacia Palaszczuk and Treasurer Cameron Dick some tough questions.

Irritant of the Week

Yvette D’Ath. The bungling Health Minister left Queensland ill-prepared for the next deadly wave of Covid even though every health organisation in the world warned a new strain was coming.