It has been just reported that an important bank has been fined a massive amount of money after it misled customers. Check out the latest reports about this below.
Banking giant fined
A major bank with total assets of approximately $670 billion has been fined millions of dollars for misleading its credit card customers over a number of years.
The Australian Securities and Investments Commission (ASIC) has revealed that the Australia and New Zealand Banking Group Limited (ANZ) will pay $15 million AUD, equivalent to around $9.65 million, after it was found to have breached both the ASIC Act and the National Consumer Credit Protection Act by the country’s Federal Court. ANZ provided customers with false information by suggesting that they could take out cash advances from their “Available Funds” without incurring fees and interest charges.
However, the court discovered that ANZ presented a larger sum than customers were actually able to withdraw, leading them to believe that they could easily obtain cash advances that were free from fees and interest from their “Available Funds.”
The Australian Securities and Investments Commission (ASIC) has found ANZ guilty of charging fees and interest associated with cash advances to over 186,000 accounts.
Some individuals were even charged thousands of Australian dollars in fees for using the lender’s service. The court has ruled that ANZ did not act efficiently, honestly, or fairly by failing to take timely measures to rectify the issue.
According to ASIC Deputy Chair Sarah Court, customers have the right to clear and accurate information about their available funds and the fees and charges that may apply.
Many ANZ customers relied on the bank’s account information and were charged fees that were inconsistent with it. These are mistakes that a bank should be aware of and address promptly.
ANZ has been fined $15 million AUD and will also provide remediation payments worth $8.3 million AUD (approximately $5.34 million) to customers who were charged interest and fees for their cash advances between May 2016 and November 2018.
