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Bank Fees Class Action ANZ Proceedings Launch

Bank Fees Class Action ANZ Proceedings Launch. 18 June 2013. What are the fees?. Honour/Unarranged Overdraft Fees Dishonour/Payment Failed Fees Credit card Late Payment Fees Credit card Over Limit Fees. How much are these fees?.

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Bank Fees Class Action ANZ Proceedings Launch

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  1. Bank Fees Class ActionANZ Proceedings Launch 18 June 2013

  2. What are the fees? • Honour/Unarranged Overdraft Fees • Dishonour/Payment Failed Fees • Credit card Late Payment Fees • Credit card Over Limit Fees

  3. How much are these fees? We say that these default events cost the banks just a few cents per event

  4. Some Examples December 2009 • Direct debit pushes account into $27.55 overdraft, put back into credit within 3 days • No interest charged (would have been less than 5c), but unarranged overdraft fee of $10 (220 times the interest amount) • Effective interest rate of over 4,400%

  5. Some Examples $30 in dishonour fees charged for 3 rejected electronic payments totalling $127.47

  6. Some Examples October 2009 • Account in overdraft of $56.22 for 1 day • Interest charged of $0.12, plus unarranged overdraft fee of $20 (167 times the interest amount) • Effective interest rate of over 13,000%

  7. Why ANZ? • Huge uptake – 11,000 registrations since launch covering about 17,000 bank accounts. • Covers customers operating under two sets of terms and conditions (ANZ and National Bank) – setting a strong precedent for other claims.

  8. How big is the case? • This will be the biggest group litigation (by number of claimant) in NZ history • We estimate that ANZ and National Bank have charged around $250 million in these fees over the past 6 years • Total size of the case (in dollar terms) depends upon the proportion of ANZ customers who sign up

  9. What’s next? • ANZ (and former National Bank) customers have until Monday, 24 June 2013 to register at fairplayonfees.co.nz • Only those who have signed up will be eligible to participate in the claim • We will file the papers issuing the proceeding on Tuesday, 25 June 2013 • We would expect the first court hearing to take place within two months

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