Thousands of ANZ customers in Australia have just received a big financial win. Some got as much as $630 from a class action lawsuit settlement. The total amount ANZ paid out was a whopping $57.5 million.
$34.1 million of that went straight to cardholders who were unfairly charged interest on their “interest-free” cards. This was because of unfair terms in their contracts, the lawsuit claimed.
Even though ANZ settled without saying they were wrong, many customers are happy. This money is a big help for those struggling with living costs.
Major Highlights
- ANZ customers received a cash boost ranging from $24 to $630 as part of a class action lawsuit settlement.
- The total payout from ANZ was $57.5 million, with $34.1 million distributed directly to eligible cardholders.
- The lawsuit alleged unfair terms in ANZ’s “interest-free” credit card contracts, leading to unconscionable conduct and loss to customers.
- The settlement is covered by a provision held on 30 September 2023, providing financial assistance to customers.
- Charging retroactive interest on credit cards with an interest-free period has been outlawed in Australia.
ANZ Class Action Settlement
A recent class action lawsuit against ANZ has led to a big win for customers. The law firm Phi Finney McDonald took on the bank for unfair credit card terms. The settlement is $57.5 million, with $34.1 million going to cardholders after legal costs.
Background of the Legal Challenge
The lawsuit was about ANZ’s credit card practices. Customers with “interest-free” cards from 2010 to 2018 were charged interest. This was despite the cards being marketed as interest-free.
Total Settlement Amount and Distribution
The $57.5 million settlement is a big relief for those affected. After legal fees, $34.1 million will go to eligible cardholders. This ensures a fair payout for those who faced unfair practices.
Eligibility Criteria for Cardholders
- Held an “interest-free” personal credit card with ANZ between July 1, 2010, and December 31, 2018.
- Were charged interest on purchases during this period, despite the card being advertised as interest-free.
This settlement is a win for Australian consumers. It brings inflation relief and government rebate benefits to those affected. The class action process has shown it can protect Australians from financial institutions.
Customer Reactions to $630 Cash Boost and Various Payouts
ANZ customers were thrilled to get an unexpected cash boost. One customer, who forgot they had an ANZ card, was overjoyed with a $630 payout. This family cash handout was a big help during tough times.
While some got $630, others received smaller amounts like $2.71 to $208. The different payouts show how varied the settlement was for each cardholder.
Despite the varying amounts, ANZ customers are mostly happy and thankful. Many said they were “pretty happy” with the cash boost. They saw it as a surprise financial relief.
Payout Amount | Customer Reactions |
---|---|
$630 | “I was surprised and really happy to receive this family cash handout. It’s a great help during these tough times.” |
$24 | “While the amount was smaller than expected, I’m grateful for the one-off payment from ANZ. Every bit of financial relief counts.” |
$73 | “I had forgotten about the ANZ card, so this payout was a pleasant surprise. It’ll definitely come in handy.” |
$208 | “I’m pleased to have received this settlement payment from ANZ. It’s a welcome boost to my finances.” |
The reactions show how different people felt about the payouts. Even small amounts were a big help to many ANZ customers.
Unfair Interest Charges: How ANZ’s Credit Card System Worked
The ANZ class action settlement has highlighted unfair interest charges on credit cards. Many customers found it hard to understand the interest-free period.
Interest-Free Period Complications
ANZ’s credit card system made it hard for customers to know when interest would be charged. Even if they paid on time, interest could be applied. This was because interest was calculated retroactively during the interest-free period.
Retroactive Interest Charges Explained
If a customer didn’t pay the full balance by the due date, ANZ charged interest on the entire balance. This included the part that was paid on time. Many found this practice unfair and confusing.
Changes in Credit Card Interest Regulations
Charging retroactive interest on credit cards with an interest-free period is now outlawed as of January 2019. This change was made to protect consumers from unfair interest charges. The ANZ class action showed the need for clearer and fairer credit card interest calculations.
The bank’s policy of retroactively charging interest was a major reason for the class action lawsuit against ANZ. The settlement aims to help affected customers with household assistance and financial support. It offers inflation relief through cash payouts.
How to Check and Claim Your Settlement Payment
If you’re an ANZ customer who joined the class action, you can now see your settlement amount. Just log into your account with Phi Finney McDonald, the law firm managing the case. You should have gotten an email with steps to access your account and see your payout details.
Be careful of fake scammers pretending to be Phi Finney McDonald. The law firm says they won’t ask for money, passwords, or remote access to your devices. If you’re unsure, contact them directly for help.
This settlement is a big help for many Australians. It offers a cost of living payment or government rebate in tough times. By claiming your settlement, you get the compensation you deserve. It can also ease the financial stress you’re under.
FAQ
What is the ANZ class action lawsuit about?
The lawsuit claimed ANZ had unfair terms in their “interest-free” credit card deals. It said they acted unfairly, causing losses to customers. The issue was how ANZ charged interest on purchases during the free period.
How much is the total settlement amount and how much is being distributed to eligible cardholders?
The total settlement is .5 million. After lawyer fees, .1 million will go to eligible cardholders. ANZ didn’t admit to any wrongdoing in the settlement.
Who is eligible for the class action settlement payouts?
Those who had an “interest-free” personal credit card with ANZ from 2010 to 2018 are eligible. They must have been charged interest on purchases during that time.
What are the range of payout amounts that customers are receiving?
Payouts vary from .71 to 0. Some got the max of 0, while others received smaller amounts like and 8.
How did ANZ’s credit card system lead to unfair interest charges?
ANZ’s system made it hard for customers to grasp interest calculations. They charged interest on time payments and on past free purchases. This was seen as unfair and has been banned in Australia.
How can eligible customers check and claim their settlement payment?
Eligible customers can check their payout by logging into their account with Phi Finney McDonald. The law firm has sent emails with login details. They warn against sharing personal info or money.