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Australia’s ANZ Group to settle credit cards class action for $37.4 million
Global Banking & Finance Review®
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(Reuters) – Australia’s ANZ Group said on Monday it had agreed to settle a class action suit related to interest charged on personal credit cards for A$57.5 million ($37.44 million).
(Reuters) – Australia’s ANZ Group said on Monday it had agreed to settle a class action suit related to interest charged on personal credit cards for A$57.5 million ($37.44 million).
The settlement is without admission of liability and remains subject to court approval, ANZ said in a statement.
The class action was brought against the lender by law firm Phi Finney McDonald in 2021.
The lawsuit alleged “unfair contract terms and unconscionable conduct” by the bank in charging interest between July 2010 and January 2019 on credit card purchases that should have been interest free.
($1 = 1.5356 Australian dollars)
(Reporting by Himanshi Akhand in Bengaluru; Editing by Sandra Maler and Marguerita Choy)
A class action is a legal procedure where a group of people collectively bring a claim to court, often against a company or organization, seeking compensation for similar grievances.
Credit cards are financial tools that allow consumers to borrow funds from a pre-approved limit to make purchases or withdraw cash, with the obligation to repay the borrowed amount plus interest.
Interest is the cost of borrowing money, typically expressed as a percentage of the principal amount, which lenders charge borrowers for the use of their funds.
Consumer protection refers to laws and regulations designed to ensure the rights of consumers are upheld, preventing businesses from engaging in unfair practices.
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