Australian Bank Fined Millions for Misleading Credit Card Customers
An Australian bank with $670 billion in total assets has been fined millions of dollars for misleading its credit card customers. The Australia and New Zealand Banking Group Limited (ANZ) has agreed to pay a fine of $15 million AUD ($9.65 million USD) after violating the ASIC Act and the National Consumer Credit Protection Act.
Misleading Information about Available Funds
The Australian Securities and Investments Commission (ASIC) found that ANZ provided false information to customers regarding their “Available Funds.” Instead of displaying accurate information, the bank showed a larger amount than what was actually available for withdrawal. This led customers to believe that they could make cash advances without fees and interest from their “Available Funds.”
Wrongful Charges and Delayed Remedies
As a result of ANZ’s misleading information, over 186,000 accounts were wrongfully charged with fees and interest associated with cash advances. Some individuals were even charged thousands of Australian dollars in fees for using the bank’s service. The court also found that ANZ failed to address the issue promptly, violating its duty to act “efficiently, honestly, and fairly.”
Remediation Payments to Affected Customers
In addition to the $15 million AUD fine, ANZ will provide remediation payments totaling $8.3 million AUD ($5.34 million USD) to customers who received interest and charges for their cash advances between May 2016 and November 2018.
Hot Take: ANZ Faces Consequences for Misleading Customers
The Australian Securities and Investments Commission has taken action against ANZ for misleading its credit card customers by providing inaccurate information about their available funds. This resulted in wrongful charges and delayed remedies for over 186,000 accounts. ANZ has been fined $15 million AUD and will also provide remediation payments to affected customers. The case highlights the importance of banks providing clear and accurate information to their customers, as well as promptly addressing any issues that arise. Customers deserve transparency and fair treatment from their financial institutions.
Source: The Daily Hodl
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