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ANZ Accepts Tribunal Decision onPre1996 Personal Loan Errors

Document date:  Mon 16 Dec 2002
Published:  Mon 16 Dec 2002 18:18:36
Document No:  199268
Document part:  A
Market Flag:  N
Classification:  Other


HOMEX - Melbourne                                                     

ANZ today accepted the decision of the Victorian Consumer and
Administrative Tribunal (VCAT) on penalties and compensation relating
to customers who incurred financial loss resulting from documentation
errors for fixed interest personal loans taken out between 1985 and

The errors are a breach of the Credit Act in force between 1985 and
1996 in Victoria, New South Wales, Australian Capital Territory and
Western Australia, and between 1989 and 1996 in Queensland. The
Credit Acts have since been repealed and replaced by the Uniform
Consumer Credit Code.

Since 1996, ANZ has overhauled its systems and training procedures
ensuring there has been no repeat of the errors and that ANZ is
compliant with the Uniform Consumer Credit Code.

Today's VCAT decision, which includes a fine of $5.25 million and
$850,000 to be paid in compensation to customers, follows a tribunal
hearing on 3 December 2002 and settlement earlier this year of a
related class action with legal firm Maurice Blackburn Cashman.

ANZ Managing Director Personal Banking and Wealth Management Mr Elmer
Funke Kupper apologised to all customers who had been affected by the
documentation errors.

"Today's decision on penalties and compensation brings to an end a
long running issue over errors that occurred between seven and
sixteen years ago," Mr Funke Kupper said.

"There is absolutely no excuse for breaches of consumer regulation
and we accept the way ANZ has worked to resolve these issues in the
past has not always been in our customers' best interest. We
unreservedly accept the Tribunal's findings and the decision on
penalties and compensation," he said.

The documentation errors related only to some ANZ fixed interest
personal loans taken out between 28 February 1985 and 31 October
1996. The errors ranged from mistakes such as having the wrong date
on the credit contract where no financial loss has occurred and
compensation is not payable, to compensable errors where there has
been financial loss to the customer such as failing to properly
rebate credit insurance premiums.

For media enquiries, contact:

Paul Edwards
Tel:   03-9273 6955 or 0409-655 550