ANZ (ASX:ANZ) share price slips as bank faces multimillion-dollar lawsuit

Litigators are seeking compensation from the bank on behalf of 150,000 customers.
The post ANZ (ASX:ANZ) share price slips as bank faces multimillion-dollar lawsuit appeared first on The Motley Fool Australia. –

The Australia New Zealand Banking Group Ltd (ASX: ANZ) share price has slipped into the red during afternoon trade. ANZ shares are now trading at $27.39.

ANZ shares are on the down as the banking giant faces a multimillion-dollar class-action lawsuit in New Zealand.

Here’s what we know.

Why is ANZ in the naughty corner?

The lawsuit has been brought against the bank in the Auckland High Court on claims that it failed to refund fees and earned interest. The claim has been brought on behalf of 150,000 of its customers.

Litigators are seeking compensation from the bank. They claim ANZ has yet to make good on these owed payments, some of which came about due to disclosure breaches.

Australian litigation finance firm CASL and New Zealand litigation financier LPF Group are jointly funding the suit.

It’s not the first time ANZ has admitted a liability of this nature. It has previously acknowledged failures to provide accurate information to personal and home loan customers in New Zealand.

Last year the bank agreed to pay around NZ$30 million to some 100,000 of its customers. This was after admitting it misstated interest calculations on loans from May 2015 to May 2016.

According to ANZ, this was due to a coding error in its mortgage payment algorithms.

The present case is to be prosecuted under the Credit Contracts and Consumer Finance Act (CCCFA) of New Zealand. Former NZ Commerce Commission lawyer Scott Russell will lead the bench.

Speaking to today’s NZ Herald, Russell said, “If a bank fails to comply with its disclosure obligations, it is not legally entitled to charge interest or fees on the affected loan” until issues are rectified.

Russell added that ANZ’s alleged failures “constitute serious breaches of the provisions of the CCCFA”. He asserted the bank should pay its customers back to set the record straight.

ANZ shares are down 0.85% on the day, in line with weakness in the broader Australian financials sector.

ANZ share price snapshot

The ANZ share price has climbed over 20% this year to date, extending its gains over the past year to 56%.

Yet, it is down 3% in the past month.

Nonetheless, ANZ shares have outpaced the S&P/ASX 200 Index (ASX: XJO) benchmark return of 20% this past 12 months.

The post ANZ (ASX:ANZ) share price slips as bank faces multimillion-dollar lawsuit appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australia New Zealand Banking Group right now?

Before you consider Australia New Zealand Banking Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australia New Zealand Banking Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Confirmed: APRA is planning action on home loans, ASX 200 banks drop

Leading brokers name 3 ASX shares to sell today

Why we favour 2 of 4 big bank ASX shares: fund manager

September hasn’t been a great month so far for the ANZ (ASX:ANZ) share price
Why ANZ (ASX:ANZ) and this dividend share could be buys

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!