NZ banks defend themselves over Aussie-led fee gouging suits

The New Zealand Bankers Association (NZBA) has argued that fees and interest rates charged by banks are fair and reasonable. The comments came after an Australian law firm launched a class lawsuit over claims that Australian bank fees for late payments or 'exceptions' were unfair. Here is the full statement below by the NZBA.

In Australia, litigation funder IMF Australia is funding a number of class actions against Australian banks in relation to the charging of penalty and late fees. In response to the questions now being raised in New Zealand as a result of this pending Australian litigation, the following statement is made by the Chief Executive of the New Zealand Bankers’ Association, Sarah Mehrtens, on behalf of its member banks – ANZ, ASB, BNZ, Citibank, HSBC, Kiwibank, National Bank, Rabobank, TSB and Westpac. “New Zealand banks provide their customers with a package of products and services to meet their banking needs, and we believe the combination of fees and interest rates customers pay are fair and reasonable. Customers also benefit from a significant number of services within their banking package being free,” says Ms Mehrtens. There are some very important differences between the Australian and New Zealand markets. With respect to fees, New Zealand has a different legislative framework to Australia. The Credit Contracts and Consumer Finance Act (CCCFA) 2003 has been in place for many years, providing strong consumer protection to New Zealand banking customers. Bank fees are often avoidable, and most people would agree that customers who operate their accounts as agreed with their bank should not bear the very real costs of those who do not. All banks do have ways to help customers avoid getting into the position where they pay penalty and late fees, and we encourage any customer who is concerned about their own situation to talk to their bank directly. It is important for the stability of the New Zealand economy that banks are robust and that their shareholders, many of whom are New Zealanders, receive a fair return on the money they invest.