ANZ is appealing a High Court decision that found the bank breached consumer credit disclosure rules affecting around 150,000 customers between 2015 and 2019. The bank puts its maximum potential liability at $125 million and says the court's interpretation of the law was incorrect.
ANZ has appealed a High Court decision that went against it in a class action brought by borrowers over breaches of the Credit Contracts and Consumer Finance Act (CCCFA). The bank says the court's interpretation of the law was wrong and the consequences would be disproportionate to any actual harm caused, according to RNZ.
The case centres on disclosure requirements that applied between 2015 and 2019. Under the CCCFA, a lender found to be in breach of its disclosure obligations was required to repay borrowers all the interest and fees charged during the period of non-compliance.
ANZ's chief executive Antonia Watson said the bank acknowledged the technical issue but maintained the law was not intended to operate in the way the plaintiffs and litigation funders suggested. "The potential consequences under the High Court's interpretation of the law are disproportionate and not aligned with the purpose of the CCCFA or any actual harm caused," she said.
What happened
ANZ identified a coding error in one of its systems that failed to properly account for accrued interest not yet charged. As a result, loan variation letters sent to customers contained incorrect information — meaning roughly 17,000 customers underpaid their mortgages by about $2 per month during the affected period. ANZ reported the issue to the Commerce Commission and wrote off the underpayments. The bank said more than $35 million was paid to affected customers, leaving them better off than if the error had not occurred.
The class action was brought on behalf of around 150,000 customers who held loans during the period in question. ANZ puts its maximum potential liability at approximately $125 million.
Broader context
ANZ is not the first major bank to face CCCFA class action proceedings. In October last year, ASB agreed to a $135.6 million settlement with customers over similar historical disclosure breaches. The Commerce Commission has signalled stronger enforcement of consumer credit disclosure rules in recent years, and the volume of class action litigation in this space reflects the statutory exposure banks face when disclosure errors occur — even when the financial harm to customers is minimal.
For ANZ's customers and the broader banking sector, the appeal will be watched closely. If the bank's challenge succeeds, it could narrow the scope of liability under the CCCFA's remediation provisions. If it fails, the $125 million provision becomes a real cost — one that follows ASB's $135.6 million settlement and adds to the sector's tab for historical disclosure failures.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.