ANZ Wins Appeal Against Credit Card Fees Decision

In a landmark case on Wednesday, banking giant ANZ has won against a Federal Court's judgment that earlier found late payment fees on credit cards unlawful and consumers should be reimbursed.

The Federal Court ruled in February that late payment fees the bank charged its customers were uncalled for, and hence considered extravagant. Justice Michelle Gordon saw no relationship between credit card late payment fees of up to $35 with bank’s cost of 50 cents each. However, a full bench of the Federal Court overturned the same decision today. An Australia's leading compensation and social justice law firm is currently fighting on behalf of 43,500 bank customers, said it would appeal to the High Court.

"It is perhaps appropriate that Australia's largest consumer class action will ultimately be decided by Australia's highest court, and as a result of today's decision, that's where we're headed," said the firm's national head of class actions, Andrew Watson. The late fee component is about a quarter of the total $57 million in fees, the lawyers are now trying to retrieve it for the ANZ customers. The law firm, Maurice Blackburn, which is acting on behalf of the customers, argued for the recoup of the fees, including honour and dishonour fees, along with over-limit fees on credit cards. The action against the bank started in September 2010.

Mr. Watson also informed that owing to the way the law firm had established these proceedings, those who ever paid a late payment fee is covered by the case.

Additionally, Maurice Blackburn has also issued proceedings against country’s other banking giants such as Citibank, Commonwealth Bank, National Australia Bank, Westpac, St George, Bank SA and BankWest.

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