New Zealand's major banks say their penalty and late fees are “fair and reasonable” as the multibillion dollar lawsuit facing banks across the Tasman threatens to be replicated here.Australian banks face a number of class actions in relation t
New Zealand’s major banks say their penalty and late fees are “fair and reasonable” as the multibillion dollar lawsuit facing banks across the Tasman threatens to be replicated here.
Australian banks face a number of class actions in relation to the charging of exception fees – levied on customers who exceed account limits or make late payments on home loans or credit cards.
It is estimated the big four banks and eight others across the Tasman reaped $A5 billion in what is claimed to be “unfair” exception fees during the past six years.
Litigation funder IMF Australia is funding the class actions.
Now, two Christchurch-based law firms have said they are planning to file a similar lawsuit later this year against banks they say have overcharged customers in the same way as their Australian parents.
The New Zealand Bankers’ Association, representing ten registered banks, said there were important differences in the way banks operate in the Australian and New Zealand markets.
Chief executive Sarah Mehrtens said New Zealand has a different legislative framework in respect to fees. Here, the Credit Contracts and Consumer Finance Act 2003 provides strong consumer protection to New Zealand banking customers.
“New Zealand banks provide their customers with a package of products and services to meet their banking needs and we believe the combination of fees and interest rates customers pay are fair and reasonable,” she said.
“Customers also benefit from a significant number of services within their banking package being free.”
Ms Mehrtens said banks fees were often avoidable and customers who meet terms with their bank should not have to bear the costs of those who do not.
“All banks do have ways to help customers avoid getting into the position where they pay penalty and late fees and we encourage any customer who is concerned about their own situation to talk to their bank directly.”
The New Zealand Bankers’ Association represents the following banks: ANZ, ASB, BNZ, Citibank, HSBC, Kiwibank, National Bank, Rabobank, TSB and Westpac
On Friday the association elected ASB Bank chief executive Charles Pink to be its chairman for 2010/2011.
BNZ chief executive Andrew Thorburn is the new deputy chairman.
