Australian bank ANZ sued over interest charges on credit card purchases

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Australian bank ANZ sued over interest charges on credit card purchases

Reuters -- Australia and New Zealand Banking GroupNew Zealand Banking Group has been sued by a law firm for charging interest on purchases by credit card holders who were repaid on time for nearly a decade, the parties said on Wednesday.

The law firm, Phi Finney McDonald, filed a class-action suit in the federal court against Australia's No. Between July 2010 and January 2019, 4 lenders charged interest on purchases that should have been interest-free.

The terms of ANZ's contract made it impossible for a typical consumer to understand that they would be charged retrospective interest, even on purchases that they repaid on time, the law firm said in a statement.

The lawsuit alleged unfair contract terms and unconscionable conduct by the bank, but did not specify what damages it was seeking against ANZ in the federal court.

ANZ said in a statement that it would review the claim that it was in violation of the Australian Securities and Investments Commission Act.

The lawsuit is the latest in a string of legal actions faced by Australia's top banks, ranging from breach of consumer protection laws to charging financial advice to dead customers.

Since a Royal Commission inquiry in 2018 found widespread shortcomings in the sector, Australian lenders and financial institutions have ramped up their scrutiny, forcing companies and regulators to take swift action.