A significant victory in the legal proceedings against New Zealand’s largest banks, ANZ and ASB, now ensures that over 100,000 customers will be automatically included in a class action lawsuit. This development could potentially allow thousands of New Zealanders to receive refunds for the full amount of interest and fees paid on their home loans over a nine-year span.

A ruling from the Court of Appeal issued on 19 July 2024 stipulates that all affected customers will be part of the class action unless they actively choose to opt out. The total number of impacted customers may exceed 150,000, positioning this as one of the largest class actions in New Zealand’s legal history.

In its ruling, the Court of Appeal criticized the banks’ proposed opt-in model, stating that it would “frustrate access to justice by imposing unnecessary obstacles on those entitled to be part of the representative class.”

The court’s decision to grant the plaintiffs’ request for the case to proceed as an opt-out class action is pivotal, as most of the banks’ customers are simply not aware of their right to participate. Should the claim succeed, ANZ and ASB will be held accountable for all eligible customers who were allegedly affected by the banks’ alleged violations of New Zealand’s consumer protection laws, rather than only those who chose to join the class action.

According to the lawsuit, ANZ and ASB did not inform their customers that their consumer protection rights had been violated, nor did they communicate that these customers were eligible for refunds of the interest and fees they had paid. Instead, the banks reached a discreet agreement with the Commerce Commission, hoping that over 100,000 customers would remain unaware of the situation.

The relevant timeframes for ASB Bank customers are from 6 June 2015 to 18 June 2019, while for ANZ Bank customers, the period is from 6 June 2015 to 28 May 2016, applicable to loans initiated after 6 June 2015.

More information about the case is available at bankingclassaction.com.