ANZ to refund customers $5 million in fees
ANZ will refund about $5 million to 25,000 customers after wrongly charging them account fees and penalties.
ANZ will refund about $5 million to 25,000 vulnerable and low income customers after botching their account fees.
The corporate watchdog said on Wednesday the bank charged incorrect late payment and over-limit fees over several years for customers who held an Access Basic account, a consumer credit card or an Everyday Visa Debit Card since 2007.
Access Basic accounts are available to concession card, health care card and repatriation card holders, who are eligible for certain fee reductions and waivers, which ANZ failed to properly apply fee.
The failures were due to breakdowns in the interaction between automated and manual processes, and unreliable manual processes, the Australian Securities and Investments Commission said in a statement.
“ANZ’s Access Basic account is specifically designed for low income consumers who are unable to pay high fees,” ASIC deputy chairman Peter Kell said.
“This matter highlights the importance of appropriately managing manual processes to apply fee waivers and discounts, and designing and maintaining robust systems to support such features.” The bank alerted ASIC to the problem, and the refunds will also include an additional amount of interest.
ANZ has since introduced a permanent automated waiver system, eliminating the need for manual intervention.