5 Feb 2014

ANZ late payment fees ruled illegal

4:24 pm on 5 February 2014

An Australian court has ruled that late payment fees charged by the ANZ bank are illegal.

ANZ bank logo.

Photo: RNZ

But in a class action that's similar to a case being taken by the bank's New Zealand customers, the federal court has rejected claims some other fees were also unfair.

The class action on behalf of 43,500 ANZ customers is the first case to be tested in a broader action against a total of eight banks, the ABC reports.

Justice Gordon said ANZ's late payment fees were unlawful and in a summary called them extravagant. However, the judge ruled that the honour and dishonour fees and the over limit fees the bank charged its customers were just.

This action aims to recoup $A57 million in fees. It is estimated that late payment fees are worth about 25 percent of that amount, or about $A14 million.