Australia

Westpac and ANZ forced to refund credit card customers

westpac-and-anz-forced-to-refund-credit-card-customers
  • ANZ will refund $10.2million to more than 50,000 business credit card accounts
  • Westpac will give $11.3million after concerns about credit card increases
  • ANZ failed to disclose interest rates, interest-free periods and annual fees
  • Westpac provided credit card limit increases to customers in financial difficulty

By Ben Hill For Daily Mail Australia

Published: 06:02 GMT, 7 February 2018 | Updated: 06:02 GMT, 7 February 2018

Wesptac and ANZ have been forced to refund more than $21million to customers after concerning practices.

ANZ will refund $10.2million to more than 50,000 business credit card accounts after failing to properly disclose fees and interest charges.

Westpac will give $11.3million to about 3,400 customers after concerns were raised by the Australian Securities and Investments Commission about their credit card limit increases.

ANZ reported to ASIC that they failed to disclose or incorrectly disclosed interest rates, interest-fee periods, annual fees, overseas transaction fees and amounts payable for overseas transactions from as early as 2009.

ANZ will refund $10.2million to more than 50,000 business credit card accounts after failing to properly disclose fees and interest charges

ANZ will refund $10.2million to more than 50,000 business credit card accounts after failing to properly disclose fees and interest charges

The bank has contacted customers to advise them they will receive refunds plus interest, while former customers will receive a bank cheque.

Most of those ANZ customers affected were small businesses using the bank's 'Business One' credit card.

Customers with current accounts will have their refunds paid directly. No ANZ consumer credit card accounts have been impacted by the failed disclosure of fees.

Wesptac have agreed to improve its lending practices when providing credit card limit increases after they had provided them to customers with financial difficulties.

After the review they provided refunds to about 3,400 customers, including $3million in fees and interest.

They waived about $8.3million in credit card balances following the review.

Westpac will give $11.3million to about 3,400 customers after concerns were raised by the Australian Securities and Investments Commission about their credit card limit increasesWestpac will give $11.3million to about 3,400 customers after concerns were raised by the Australian Securities and Investments Commission about their credit card limit increases

Westpac will give $11.3million to about 3,400 customers after concerns were raised by the Australian Securities and Investments Commission about their credit card limit increases

Westpac has made the first two payments of a $1million total to support financial counselling and financial literacy. They will make two further payments, the first later in 2018 and then again in 2019.

In 2014, ASIC conducted a review focusing on credit card providers' invitations to customers to increase credit card limits.

After the review, ASIC raised concerns with Westpac.

Daily Mail Australia has contacted Westpac and ANZ for comment.

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