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http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10870518
The big four Australian-owned banks - BNZ, ANZ, Westpac and ASB, along with state-owned Kiwibank - are being sued for a collective $1b in a massive class action lawsuit announced today.
Auckland-based lawyer Andrew Hooker, Australian consumer law firm Slater & Gordon and Litigation Lending Services, a litigation funding firm, are seeking plaintiffs to join a class suit against New Zealand's registered banks to reclaim fees charged when customers overdraw their accounts, pay credit card bills too late, or bounce a cheque.
"The reason for this class action is the unlawful overcharging of kiwis for many many years," Hooker told media in Auckland. "Under contract law in New Zealand, default fees must reflect actual costs to the party charging those default fees."
Hooker claims the banks have breached contract law by charging a fee that is higher than what it costs them when the payment defaults. The action will go back over six years.
The group says bank customers are being charged around $15 every time they overdraw their accounts when they estimate it only costs the banks a few cents when the transaction occurs.
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