ASIC Confirms Refunds For ANZ & Westpac Credit Card Holders

February 8, 2018
ASIC Confirms Refunds For ANZ & Westpac Credit Card Holders February 8, 2018 Clive Nelson

Australian Securities and Investments CommissionTwo of Australia’s biggest banks are returning a collective amount of $21 million to their credit card holders after corporate watchdog Australian Securities and Investments Commission (ASIC) called them out for credit card charges and limits malpractice.

In two separate reports this week, the ASIC announced that Westpac and ANZ are due to refund millions of dollars to their patrons for certain credit card issues.

ASIC has called ANZ to refund $10.2 million to 52,135 business credit card accounts after they found that the bank failed and incorrectly disclosed interest rates, annual fees, interest-free periods and overseas transaction fees for their Business One credit card holders. The refund amount will include wrongly charged fees and interest.

ANZ’s Business One program was a credit card initiative for small businesses. According to ASIC, some of the instances of misinformation for the Business ONE credit card owners date back to 2009.

In response to ASIC’s order, ANZ has started contacting their patrons who are eligible for the refund. Refunds will be transferred directly to the customers’ accounts while those who have since left ANZ will be issued a bank cheque. ANZ has already updated their procedures and fee information to keep their patrons up-to-date about their fees.

On the other hand, Westpac has successfully refunded over $11.3 million to 3,400 of their credit card customers. This news comes after ASIC conducted a review of the bank in 2014, where the regulator found Westpac was sending out invitations to credit card holders to increase their credit limit.

Since the ASIC started its review of Westpac’s credit limit operations, the Australian government has amended its financial regulations to order all credit card providers such as Westpac and ANZ to stop sending credit card limit increase invitations to all their customers.

Assessments of whether a customer is eligible for a credit limit increase will now take into consideration the patron’s ability to repay the loan within the period prescribed by ASIC, rather than their financial capability to meet the minimum monthly or fortnightly repayment.

By 2016, Westpac updated their lending practices and systems in order to make a smarter decision on whether a customer is financially able to afford a credit card limit increase. Since the bank started its remediation program, about $3 million in fees and interests have been refunded and $8.3 million in Australian credit card balances have been waived.

In a statement, Westpac said,

Westpac is committed to lending responsibly. If we get something wrong we will acknowledge it and will put it right for our customers

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

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